SHRI CHINNAIAH vs. INCOME-TAX OFFICER

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 15191 OF 2023 (T-IT) BETWEEN: SHRI. CHINNAIAH, S/O. BADAKAPPA, AGED ABOUT 53 YEARS, OCCUPATION: AGRICULTURE, R/O 78, BELTHUR NEAR SBI BANK, RADUGODI POST, BENGALURU EAST, BENGALURU - 560 067. PAN: APRPC7190K …PETITIONER (BY SRI. BALACHANDRAN B.S., ADVOCATE) AND: 1. INCOME-TAX OFFICER, WARD 6(3)(1), BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX, BENGALURU - 6, BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, Digitally signed by VIDYA G R Location: High Court of Karnataka

BENGALURU - 560 095. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE)

THIS W.P IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE FOLLOWING ANNEXURE-L - IMPUGNED ASSESSMENT ORDER DATED 30/03/2023 PASSED BY THE R-1 U/S 147 R/W SEC 144 OF THE IT ACT FOR THE AY 2015-16 IN DIN AND ORDER NO. ITBA/AST/S/147/2022-23/1051624929(1) ANNEXURE-L1- IMPUGNED COMPUTATION SHEET DATED 30/03/2023 PASSED BY THE R-1 U/S 147 R/W SEC 144 OF THE IT ACT FOR THE AY 2015-16 IN DIN AND DOCUMENT NO. ITBA/AST/S/114/2022- 23/1051624954(1) AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has challenged the assessment order at Annexure-L passed by respondent No.1 dated 30.03.2023, the computation sheet at Annexure-L1, impugned demand notice at Annexure-L2 and penalty notice at Annexure-L3. 2. Learned counsel for the petitioner submits that, the notice under 148A(b) of the Income Tax Act, 1961

(for short 'the Act') at Annexure-A suffers from legal infirmity insofar as notice was issued on 23.02.2022 calling upon the petitioner to reply by 29.03.2022. It is submitted that the time of six days granted is contrary to the mandate under Section 148A(b) of the Act. Accordingly, it is submitted that the notice being defective, all consequential proceedings are required to be set aside. 3. Heard the learned counsel for the petitioner and the learned counsel for the respondents. 4. Section 148A(b) of the Act reads as follows: "148A. The Assessing Officer shall, before issuing any notice under section 148,- (a) xxx (b)' provide an opportunity of being heard to the assessee, 69[*] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is

issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause(a)." 5. The statutory mandate is that notice cannot be less than seven days and that is clear from the provisions itself. In the present case, Annexure-A on the pase of it has to be set aside only on the ground that, the time granted for replying to the notice issued under Section 148A(b) was four days as notice is dated 21.03.2022 and the reply was to be made out by 25.03.2022. 6. In light of the same, as a defective notice would vitiate the entirety of the proceedings though subsequent proceedings have culminated in passing of an assessment order, the notice issued under Section 148A(b) of the Act is however preserved while directing that the respondent

give an extended time period for its reply. Considering the time spent before this court, it could be taken that the petitioner is now in a position to make out a reply to the notice issued under Section 148A(b) of the Act by fixing the appropriate date in that regard. 7. Accordingly, the petition is disposed off. 8. The orders at Annexure-L, Annexure-L1, Annexure-L2 and Annexure-L3 are set aside. The matter is relegated to the stage of reply to the notice under Section 148A(b). The petitioner to make out a reply to the notice under Section 148A(b) within a period of four weeks from the date of receipt of certified copy of this order. 9. All contentions are kept open. Sd/- JUDGE CH List No.: 1 Sl No.: 32 CT: THK