Karnataka Co Operative Sheep and Goat Rearers Societies Federation Ltd. Vs ITO (Karnataka High Court)
The Karnataka High Court heard a petition filed by the Karnataka Co-operative Sheep and Goat Rearers Societies Federation Ltd. challenging multiple notices, assessment orders, and garnishee actions issued by the Income Tax Department for Assessment Year 2017-18. The petitioner sought quashing of several notices issued under sections 148A(b), 148A(d), 148, 147 read with sections 144 and 144B, a demand notice under section 156, and a garnishee notice under section 226(3), including bank attachments on two accounts in the Karnataka State Co-operative Apex Bank.
The petitioner argued that the actions taken by the Income Tax Department were beyond the scope of law and referenced a decision by a co-ordinate Bench in Ramachandra Reddy Ravi Kumar Vs. Deputy Commissioner of Income-tax (W.P.No.17352/2022), contending that similar notices and proceedings were quashed in that case. The respondents contended that the petition lacked merit.
The Court considered the matter in light of the co-ordinate Bench judgment, which had held that show cause notices issued outside the scope of section 151-A of the Income Tax Act and consequential proceedings should be quashed. The Court noted that liberty was reserved for the Revenue to revive such petitions if the Supreme Court ruled in favor of the Revenue in pending matters.
