SMT DEEPA GOPI vs. THE INCOME TAX OFFICER

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WP/317/2025HC KarnatakaKAHC01000111202515 January 2025Bench: S.G.PANDIT6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court allowed the writ petition and remanded the matter. The Court found that the assessment order and subsequent penalty orders were passed without proper service of notice on the petitioner. The fact that the notices sent through registered post were returned with the endorsement 'no such person' clearly indicated that the petitioner had not received them. This non-service of notice violated the principles of natural justice. Therefore, the Court quashed the assessment order dated March 7, 2024, and several penalty orders. The petitioner was granted three weeks to file objections to the notices dated February 4, 2023, and February 14, 2023, issued under Section 148A(b) of the Income Tax Act, 1961. The petitioner was also directed to appear before the Assessing Authority on February 13, 2025. All contentions of the parties were left open.

What were the facts?

The petitioner, Smt. Deepa Gopi, an individual, filed a writ petition challenging an ex-parte assessment order dated March 7, 2024, for Assessment Year 2016-17, passed by the Income Tax Officer (ITO) under Section 147 read with Section 144 of the Income Tax Act, 1961. The petitioner contended that she had no digital footprint on the income tax portal and did not receive any notices issued by the respondent authorities. The notices sent by registered post were returned with the postal endorsement 'no such person'. The petitioner became aware of the proceedings only upon receiving a penalty order. She sought an opportunity to file objections to the notice issued under Section 148A(b) and participate in the proceedings. The respondents acknowledged that notices sent to the petitioner's address were returned undelivered.

What were the issues?

1. Whether the ex-parte assessment order and consequential penalty orders passed against the petitioner are liable to be quashed on the ground of non-receipt of notices, thereby violating principles of natural justice, under Section 147 read with Section 144 and Section 148A(b) of the Income Tax Act, 1961? Assessee's Contention: The petitioner argued that she did not receive any notices, including the notice under Section 148A(b) of the Income Tax Act, 1961, as they were returned with the postal remark 'no such person'. She also stated she had no digital footprint on the income tax portal. Consequently, she was unable to participate in the assessment proceedings and sought an opportunity to file objections and be heard. Revenue's Contention: The revenue submitted that since the petitioner had no digital footprint and the notices sent by post to her furnished address were returned undelivered with the endorsement 'no such person', the authorities had no alternative but to proceed with the assessment.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Before: SMT. DEEPA GOPI

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NC: 2025:KHC:1473 WP No. 317 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE S.G.PANDIT WRIT PETITION NO.317 OF 2025 (T-IT) BETWEEN: SMT. DEEPA GOPI W/O. GOPI K., AGED ABOUT 44 YEARS, DOOR NO.11, 1ST MAIN ROAD, 2ND STAGE, LIG KHB COLONY, BASAVESHWAR NAGAR, BANGALORE-560 079. …PETITIONER (BY SMT. GEETHA RANI K., ADVOCATE) AND: 1. THE INCOME TAX OFFICER WARD 6 (2) (1), BMTC BUILDING, 80 FET ROAD, KORAMANGALA, BANGALORE-560 095 2. THE ADDITIONAL/JOINT/DEPUTY ASSISTANT COMMISSIONER OF INCOME TAX, INCOME-TAX OFFICER, NATIONAL FACELESS- ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, Digitally signed by KAVYA R Location: High Court of Karnataka

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NC: 2025:KHC:1473 WP No. 317 of 2025 ROOM NO.401, 2ND FLOOR, E-RAMP, JAWARHARLAL NEHRU STADIUM, DELHI-110 003. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (A) QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ASSESSMENT ORDER DATED 07.03.2024 ISSUED BY THE LEARNED FIRST RESPONDENT UNDER SECTION 147 R.W.S 144 VIDE DIN ITBA/AST/S/147/2023- 24/1062141332(1) FOR AY 2016-17, ENCLOSED IN ANNEXURE A AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.G.PANDIT

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NC: 2025:KHC:1473 WP No. 317 of 2025 ORAL ORDER

Heard Smt. Geetha Rani.K., learned counsel for the petitioner and Sri. Dilip.M., learned counsel for respondent Nos.1 and 2. Perused the writ petition papers. 2. Learned counsel for the petitioner would submit that the petitioner is before this Court under Article 226 of the Constitution of India, questioning the ex-parte Assessment Order and consequential Penalty Orders. It is further submitted that the petitioner is an individual and the petitioner did not have any digital footprint on income tax portal. Apparently the notices issued by the respondent-Authorities were not received and as such the petitioner could not participate in the proceedings or file any objection to either to Notice issued under Section 148A(b) of the Income Tax Act, 1961 (for short '1961 Act') or to any other subsequent Notices. It is pointed out from Assessment Order (Annexure-A) dated 07.03.2024 that the Notices sent through registered post, acknowledgement due was returned to the Authorities with postal shara as 'no such person'. Thus, it is stated that the petitioner has not received any Notices issued by the

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NC: 2025:KHC:1473 WP No. 317 of 2025 respondent-Authorities. Further, learned counsel would submit that the petitioner was aware of the proceedings only when the Penalty Order was served on the petitioner through post. Thus, learned counsel for the petitioner would pray for an opportunity to file objection to Notice issued under Section 148A(b) of 1961 Act and to participate in the further proceedings. 3. Per contra, learned counsel Sri. Dilip.M. for the respondents would submit that the petitioner had no digital footprint on income tax portal and the Notice sent through post to the address furnished by the petitioner returned with postal shara as 'no such person'. In that circumstances, the Authorities had no other option, proceeded further with the proceedings by issuing Notice under Section 148A(b) of 1961 Act. 4. Having heard the learned counsels for the parties and on perusal of the entire writ petition papers, I am of the view that the petitioner ought to be given an opportunity to file objection to the Notice under Section 148A(b) of 1961 Act and the petitioner needs to be given an opportunity to participate in the proceedings.

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NC: 2025:KHC:1473 WP No. 317 of 2025 5. Admittedly, the petitioner is an individual and she did not have any digital footprint on income tax portal. A perusal of the Assessment Order dated 07.03.2024 (Annexure-A) indicates that the Notice sent to the petitioner through post returned with postal shara 'no such person', which makes it abundantly clear that no notice was served on the petitioner. 6. In view of the above circumstances, the petitioner needs to be given an opportunity to explain her case before respondent No.1-Assessing Authority. Hence, the following: ORDER (a) Writ petition is allowed and remanded; (b) Annexure-A bearing No.ITBA/AST/S/147/2023- 24/1062141332(1) dated 07.03.2024; Annexure-B bearing No.ITBA/AST/S/156/2023- 24/1062141514(1) dated 07.03.2024; Annexure-C bearing No.ITBA/PNL/F/271(1)(b)/2024- 25/1068844178(1) dated 18.09.2024; Annexure-D bearing No.ITBA/PNL/S/156/2024- 25/1068797002(1) dated 18.09.2024; Annexure-E bearing No.ITBA/PNL/F/271F/2024-

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NC: 2025:KHC:1473 WP No. 317 of 2025 25/1068844491(1) dated 18.09.2024; Annexure-F bearing No.ITBA/PNL/S/156/2024- 25/1068817587(1); dated 18.09.2024; Annexure- G bearing No.ITBA/PNL/F/271(1)(c)/2024- 25/1068976415(1) dated 23.09.2024; Annexure-H bearing No.ITBA/PNL/S/156/2024- 25/1068971431(1) dated 23.09.2024 are quashed; (c) Three weeks time granted to the petitioner to file objection to Annexures-J and K, Notices dated 04.02.2023 and 14.02.2023 issued under Section 148A(b) of 1961 Act; (d) The petitioner shall appear before respondent No.1-Assessing Authority on 13.02.2025.

All contentions of the parties are left open. Sd/- (S.G.PANDIT) JUDGE SMJ List No.: 1 Sl No.: 32

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