Writ Petition No. 12046 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:17388 WP No. 12046 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.12046 OF 2025 (T-IT) BETWEEN: YOUNG MENS INDIAN ASSOCIATION REGISTERED UNDER THE KARNATAKA SOCIETY AS PAN NO. AAAAY 1007 E HAVING REGISTERED OFFICE AT NO. 5, ASSAYE ROAD, ULSOOR, BANGALORE, KARNATAKA 560 042. REPRESENTED BY ITS SECRETARY MR. JOSPEH KENNEDY S/O LATE IRUDAYNATHAN JOSEPH NOGAIAH AGED ABOUT 59 YEARS …PETITIONER (BY SRI RAJEEV CHANNAPPA NULVI, ADVOCATE) AND: 1. THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, THE NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI, DELHI-110 001. 2. THE INCOME TAX OFFICER, WARD -1(2) (1), BANGALORE, BMTC BUILDING, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORMANGALA, BENGALURU - 560 095 Digitally signed by MALATESH K C Location: HIGH COURT OF KARNATAKA
Legal Reasoning
(BY SRI M.DILIP, ADVOCATE FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO IMPUGNED ASSESSMENT ORDER DATED QUASH THE …RESPONDENTS - 2 - NC: 2025:KHC:17388 WP No. 12046 of 2025 07/09/2022, UNDER SECTION 144 R.W.S 144B OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE No. ITBA/AST/S/144/2022-23/1045283724(1) ALONG WITH COMPUTATION SHEET DATED 07/09/2022, BEARING DIN AND NOTICE NO ITBA/AST/S/530/2022-23/1045283726(1) AND NOTICE OF DEMAND DATED 07/09/2022, UNDER SEC. 156 OF THE INCOME TAX ACT, 1961, BEARING DIN AND NOTICE No. ITBA/AST/S/156/2022-23/1045283727(1), PASSED BY THE RESPONDENT AUTHORITY No.1 THE ASSESSMENT UNIT, INCOME TAX DEPARTMENT, PERTAINING TO ASSESSMENT YEAR 2020-21, VIDE ANNEXURE-A, A-1 AND A2 RESPECTIVELY AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER Sri.M.Dilip, learned counsel accepts notice for the respondents. 2. In this petition, petitioner has sought for the following reliefs: “A. To issue a WRIT of CERTIORARI, quashing the impugned Assessment Order dated 07/09/2022, under Sec. 144 r.w.s 144B of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/144/2022-23/1045283724(1) along with Computation Sheet dated 07/09/2022, bearing DIN and Notice No.ITBA/AST/S/530/2022-23/1045283726(1) and Notice of Demand Dated 07/09/2022, under Section 156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/AST/S/156/2022-23/1045283727(1), passed by the Respondent Authority No.1- The Assessment Unit, Income Tax - 3 - NC: 2025:KHC:17388 WP No. 12046 of 2025 Department, pertaining to Assessment Year 2020-21, vide Annexure-A, A-1 and A-2 respectively; and B. To issue a WRIT of CERTIORARI, quashing the impugned penalty order dated 22/03/2023, under Sec.270A of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/F/270A/2022-23/1051086417(1) along with Computation Sheet dated 22/03/2023 bearing DIN and Notice No.ITBA/PNL/S/270A/2022-23/1045283728(1) and Notice of Demand dated 22/03/2023, under Section 156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2022-23/1051083949(1); passed by the Respondent Authority No.1 The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2020-21, vide Annexure-B, B-1 and B-2 respectively; and C. To issue a WRIT of CERTIORARI, quashing the impugned penalty order dated 24/03/2023, under Section 272A(1)(d) of the Income Tax Act, 1961, bearing DIN and Notice No. ITBA/PNL/F/272A(1)(d)/2022-23/1051237213(1) along with Computation Sheet dated 24/03/2023, bearing DIN and Notice No.ITBA/PNL/S/272A(1)(d)/2022-23/1045237118(1) and Notice Of Demand Dated 24/03/2023, under sec. 156 of the Income Tax Act, 1961, bearing DIN and Notice No.ITBA/PNL/S/156/2022-23/1051232903(1); passed by the Respondent Authority No.1-The Assessment Unit, Income Tax Department, pertaining to Assessment Year 2020-21, vide Annexure-C, C1 and C2 respectively; and. D. To issue a WRIT of CERTIORARI, quashing the impugned notice dated 18/02/2025 vide DIN No.ITBA/COM/F/17/2024- 25/1073390932(1), u/s 226(3) of the Income Tax Act, 1961 and notice dated 18/02/2025 vide DIN No.ITBA/COM/F/17/2024-25/1073390749(1), u/s 226(3) of the - 4 - NC: 2025:KHC:17388 WP No. 12046 of 2025 Income Tax Act, 1961, issued by the Income Tax Officer, Ward 1(2)(1), Bangalore, in respect of the petitioner, pertaining to Assessment Year 2020-21, vide ANNEXURE-E.” 3. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 4. 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 143(2) of the Income Tax Act, 1961 (for short, ‘IT Act’) dated 29.06.2021, was not received by petitioner and it was not aware of the notice since the said notices were sent to the chartered accountant of the petitioner. The said chartered accountant of the petitioner neither informed the petitioner regarding the notice nor did he file a reply and consequently, petitioner could not submit its 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 143(2) notice dated 29.06.2021 was due to bonafide reasons, unavoidable - 5 - NC: 2025:KHC:17388 WP No. 12046 of 2025 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. 5. 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. 6. 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 143(2) notice dated 29.06.2021. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to submit reply along with documents to Show cause notice 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 orders at Annexures–A, A1, A2, B, B1, B2, C, C1, C2, E and subsequent notice / orders, etc., and remit the matter back to - 6 - NC: 2025:KHC:17388 WP No. 12046 of 2025 respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to Section 143(2) notice dated 29.06.2021 and to proceed further in accordance with law. 7.
Decision
In the result, pass the following: ORDER (i) The petition is hereby allowed. (ii) Impugned notices/orders at Annexures- A, A1, A2, B, B1, B2, C, C1, C2 and E, are hereby set aside. (iii) Matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Notice under Section 143(2) of the IT Act dated 29.06.2021. (iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondents, who shall consider the same and proceed further in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE Kcm List No.: 2 Sl No.: 19