SRI. POONARAM CHOUDHARY vs. THE INCOME TAX OFFICER

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WP/14176/2024HC KarnatakaKAHC01028840202409 August 2024Author: S.R.KRISHNA KUMAR6 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the petition. It noted that it was undisputed that the petitioner had not submitted a reply to the Section 148A(b) notices. However, accepting the petitioner's assertion that this omission was due to bonafide reasons, unavoidable circumstances, and sufficient cause, the Court deemed it just and appropriate to set aside the impugned order dated 24.03.2023 passed under Section 148A(d) and subsequent notices/orders. The matter was remitted back to the respondent for reconsideration afresh from the stage of submitting the petitioner's reply to the Section 148A(b) notices. The Court directed that the petitioner be given liberty to submit replies and that the respondent should consider them, provide a reasonable opportunity, and proceed in accordance with the law. The impugned notices/orders at Annexures A2, A3, A4, A5, and A6 were set aside.

What were the facts?

The petitioner, Sri. Poonaram Choudhary, 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 06.02.2023 and 06.03.2023, an order under Section 148A(d) dated 24.03.2023, a notice under Section 148 dated 25.03.2023, an order under Section 147 r.w.s 144, 144B dated 21.02.2024, a penalty notice under Section 271(1)(c) dated 21.02.2024, and a penalty order under Section 271(1)(b) dated 17.05.2024. The petitioner contended that he did not receive the Section 148A(b) notices and therefore could not submit a reply due to bonafide reasons and sufficient cause.

What were the issues?

1. Whether the notices issued under Section 148A(b) of the Income Tax Act, 1961, dated 06.02.2023 and 06.03.2023, were duly served on the petitioner for the assessment year 2016-17? 2. Whether the petitioner had sufficient cause for not submitting a reply to the Section 148A(b) notices? Assessee's Contentions: The petitioner argued that the Section 148A(b) notices were not received and that his inability to respond was due to bonafide reasons, unavoidable circumstances, and sufficient cause. He sought an opportunity to submit his reply and for the impugned orders and notices to be set aside. Revenue's Contentions: The respondents argued that the petition had no merit and was liable to be dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.14176 OF 2024 (T-IT) BETWEEN:

SRI. POONARAM CHOUDHARY AGED ABOUT 61 YEARS, NO.32, 5TH CROSS, MYSORE ROAD, BYATARAYANAPURA, BANGALORE SOUTH, BANGALORE – 560 026 PREVIOUSLY AT POONARAM CHOUDHARY PADAMA SHREE TEXTILES, OPP. AMCO FACTORY, MYSORE ROAD, BYATARAYANAPURA BANGALORE – 560 026 …PETITIONER (BY SRI. RAVI SHANKAR S.V., ADVOCATE)

AND:

1.

THE INCOME TAX OFFICER WARD 5(2) (1) BANGALORE – 560 095

2.

THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE – 3(1) (1) BANGALORE – 560 095

3.

NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER,

Digitally signed by REKHA R Location: High Court of Karnataka

INCOME TAX DEPARTMENT, MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM DELHI – 110 003.

4.

THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX THE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, C R BUILDING BANGALORE – 560 001 …RESPONDENTS (BY SRI. THIRUMALESH M., ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE UNDER SECTION 148(b) OF THE ACT, DATED 06.02.2023, BEARING DIN NO.ITBA/AST/F/148A(SCN)/ 2022-23/1049458118(1) ISSUED BY R1 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 seeks the following reliefs: “i) Issue a writ of certiorari or direction in the Section 148A(b) of the Act dated 06/02/2023 bearing DIN No.ITBA / AST / F / 148A(SCN) / 2022-23 / 1049458118(1) issued by the respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A. ii)

Section 148A(b) of the Act dated 06/03/2023 bearing DIN No.ITBA/AST/F/148A(SCN)/2022-23/1050463533(1) issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure-A1. iii) nature of a writ of certiorari quashing the order under section 148A(d) of the Act, dated 24/03/2023 bearing DIN No. ITBA/AST/F/148A/2022-23/1051261409(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure-A2. iv) Section 148 of the Act, dated 25/03/2023 bearing DIN No. ITBA/AST/S/148_1/2022-23/1051278327(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure-A3. v) nature of a writ of certiorari quashing the order passed u/s 147 r.w.s 144, 144B dated 21/02/2024 bearing DIN No. ITBA/AST/S/147/2023-24/1061289221(1), issued by the Respondent No.3 for the assessment year 2016-17 herein marked as Annexure-A4. vi) nature of a writ of certiorari quashing the penalty notice u/s 271(1)(c) of the Act dated 21/02/2024 bearing DIN No.ITBA/PNL/F/271(1)(c)/2023-24/1061289439(1) issued by the Respondent No.3 for the assessment year 2016-17 herein marked as Annexure-A5.

vii) nature of a writ of certiorari quashing the penalty order under Section 271(1)(b) of the Act dated 17/05/2024 bearing DIN No.ITBA/PNL/F/271(1)(b)/2024-25/1064963087(1) issued by the Respondent No.3 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 notice issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 06.02.2023 and 06.03.2023 was not received by petitioner and he was not aware of the notice and consequently, petitioner could not submit his reply / response along with documents to the said notice. 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.

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 24.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice / orders, etc., and remit the matter back to respondent No.3 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.

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.3 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 Annexure-A dated 06.02.2023 and A1 dated 06.03.2023.

(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 MDS List No.: 2 Sl No.: 11

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