SRI KRISHNAPPA NAGESH PRASAD vs. THE INCOME TAX OFFICER

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WP/21158/2024HC KarnatakaKAHC01045213202413 August 2024Bench: S.R.KRISHNA KUMAR6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that it was an undisputed fact that the petitioner had not submitted a reply to the Section 148A(b) notices. Considering the petitioner's assertion that his inability to reply was due to bonafide reasons, unavoidable circumstances, and sufficient cause, and his willingness to submit a reply if given another opportunity, the Court found it just and appropriate to set aside the impugned order dated March 10, 2023, passed under Section 148A(d), and subsequent notices/orders. The matter was remitted back to the respondent for reconsideration. The Court directed the respondent to proceed afresh from the stage of the petitioner submitting a reply to the Section 148A(b) notices. Liberty was granted to the petitioner to submit all necessary replies, responses, pleadings, and documents, and the respondent was directed to provide a sufficient and reasonable opportunity to the petitioner before proceeding further in accordance with the law. The specific findings on the service of notices or the merits of the assessment were not made as the matter was remanded.

What were the facts?

The petitioner, Sri Krishnappa Nagesh Prasad, filed a writ petition before the High Court of Karnataka challenging various notices and orders issued by the Income Tax Department for the assessment year 2016-17. These included notices under Section 148A(b) dated February 17, 2023, and March 1, 2023, an order under Section 148A(d) dated March 10, 2023, a notice under Section 148 dated March 11, 2023, an order under Section 147 read with Sections 144 and 144B dated January 24, 2024, and penalty orders under Section 271(1)(c) and Section 271F dated June 10, 2024. The core of the petitioner's grievance was that he did not receive the Section 148A(b) notices and therefore could not submit a reply.

What were the issues?

1. Whether the petitioner was duly served with the notices under Section 148A(b) of the Income Tax Act, 1961, dated February 17, 2023, and March 1, 2023, for the assessment year 2016-17. 2. Whether the petitioner had sufficient cause for not submitting a reply to the said notices. Assessee's Contentions: The petitioner argued that he did not receive the Section 148A(b) notices and was unaware of them. Consequently, he could not submit his reply and documents. He claimed this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause. He sought an opportunity to submit his reply if the impugned orders and notices were set aside. Revenue's Contentions: The revenue contended that there was no merit in the petition and it was liable to be dismissed.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148A(b),Section 148A(d),Section 148,Section 147,Section 144,Section 144B,Section 271(1)(c),Section 271F

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC:32405 WP No. 21158 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.21158 OF 2024 (T-IT) BETWEEN:

SRI KRISHNAPPA NAGESH PRASAD AGED 55 YEARS S/O G KRISHNAPPA NO.003, NO.70 FORTUNE ENCLAVE 2ND MAIN ROAD MUNESHWARA LAYOUT K C HALLI, B G ROAD BANGALORE - 560 076

PREVIOUSLY AT SRI KRISHNAPPA NAGESH PRASAD AGED 55 YEARS S/O G KRISHNAPPA NO.31, 5TH PHASE THIRUMALESHWARA KAVERI ROAD 18TH CROSS SMS LAYOUT J P NAGAR BANGALORE – 560 078 …PETITIONER (BY SRI. RAVI SHANKAR S.V., ADVOCATE) AND:

1.

THE INCOME TAX OFFICER WARD-4(3)(3) BANGALORE - 560 095

2.

NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM DELHI – 110 003

Digitally signed by REKHA R Location: High Court of Karnataka

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NC: 2024:KHC:32405 WP No. 21158 of 2024

3.

THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX C R BUILDING QUEENS ROAD BANGALORE - 560 001 …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148A(B) OF THE ACT DATED 17.02.2023 BEARING DIN NO. ITBA/AST/F/148A(SCN)/2022-23/1049852308(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNEXURE - A AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER In this petition, petitioner has sought for the following reliefs: "i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 17/02/2023 bearing DIN No. ITBA/AST/F/148A(SCN)/2022-23/1049852308(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A.

ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act dated 01/03/2023 bearing DIN No.ITBA/AST/F/148A(SCN)/2022-23/1050299323(1) Issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A1.

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NC: 2024:KHC:32405 WP No. 21158 of 2024

iii) Issue of writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act dated 10/03/2023 bearing DIN No.ITBA/AST/F/148A/2022-23/1050611513(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A2.

Iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under section 148 of the Act, dated 11/03/2023 bearing DIN No.ITBA/AST/S/148_1/2022- 23/1050646616(1), issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure - A3.

v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed under section 147 r.w.s 144, 144B dated 24/01/2024 bearing DIN: ITBA/AST/S/147/2023-24/1060060188(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A4.

vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under section 271(1)(c) of the Act dated 10/06/2024 bearing DIN No. ITBA/PNL/F/271(1)(c)/2024-25/1065512037(1) by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A5.

vii) Issue of writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 10/06/2024 issued under section 271F of the Act bearing DIN and Notice No.ITBA/PNL/F/271F/2024-25/1065512039(1) by the

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NC: 2024:KHC:32405 WP No. 21158 of 2024

Respondent No.2 for the assessment year 2016-17 herein marked as Annexure - A6.

viii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity."

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the memorandum of petition and referring to the material on record, learned counsel for the petitioner submits that notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 17.02.2023 and 01.03.2023 was not received by petitioner and he was not aware of the notices and consequently, petitioner could not submit his reply / response along with documents to the said notices. It is submitted that the inability and omission on the part of the petitioner to submit reply / response along with documents to the Section 148A(b) notices was due to bonafide reasons, unavoidable circumstances and sufficient cause and as such, if one more opportunity is provided to the petitioner to do so by setting aside the impugned orders and notices, the petitioner would do so and respondents may be directed to proceed further in accordance with law.

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NC: 2024:KHC:32405 WP No. 21158 of 2024

4.

Per contra, learned counsel for the respondents submits that there is no merit in the petition and that the same is liable to be dismissed.

5.

A perusal of the impugned order will indicate that it is an undisputed fact that petitioner has not submitted reply / response along with documents to Section 148A(b) notices. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section 148A(b) notices was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure-A2 dated 10.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to respondent No.2 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 148A(b) notices and to proceed further in accordance with law.

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NC: 2024:KHC:32405 WP No. 21158 of 2024

6.

In the result, pass the following:

ORDER

(i) The petition is hereby allowed.

(ii) Impugned notices / orders at Annexures A2, A3, A4, A5 and A6 are hereby set aside.

(iii) Matter is remitted back to respondent No.2 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notices under Section 148A(b) of the IT Act at Annexures – A and A1 dated 17.02.2023 and 01.03.2023.

(iv) Liberty is reserved in favour of the petitioner to submit replies, responses, pleadings, documents, etc., to the respondent, who shall consider the same, provide sufficient and reasonable opportunity to the petitioner and proceed further in accordance with law.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

RR List No.: 1 Sl No.: 2

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