Case Law Details
Varaha Builders Vs Hari Babu (Karnataka High Court)
Karnataka High Court remanded the matter back to the Assessing Officer since non-response to notice issued under section 148A(d) of the Income Tax Act by the petitioner was due to bonafide reasons, unavoidable circumstances and sufficient cause.
Facts- The present petition is preferred by the petitioner mainly requesting quashing of the notice issued under section 148A(b) of the Income Tax Act. Notably, petitioner has not responded to the notice so issued and contested that notices so issued was not received by the petitioner. Thus, 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 the respondents may be directed to proceed further in accordance with law.
Conclusion- Held 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 its 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, the petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – A2 dated 21.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice/orders, etc., and remit the matter back to respondent No.1 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.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
In this petition, petitioner seeks the following reliefs:
“i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A(b) of the Act, dated 03/03/2023, bearing No. ITBA/AST/F/148A(SCN)/2022- 23/1050354233(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure – A.
ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under section 148A(b) of the Act, dated 11/03/2023, bearing No. ITBA/AST/F/148A(SCN)/2022-23/1050641535(1), issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure – A1.
iii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act, dated 21/03/2023, bearing DIN No. ITBA/AST/F/148A/2022-23/1051050220(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure – A2.
iv) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 21/03/2023 bearing DIN No. ITBA/AST/S/148_1/2022-23/1051053479(1) issued by the Respondent No.1 for the assessment year 2016-17 herein marked as Annexure – АЗ.
v) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order passed Under section 147 r.w.s 144, 144B dated 24/01/2024 bearing DIN No. ITBA/AST/S/147/2023- 24/1060049641(1) issued by the Respondent No. 2 for the assessment year 2016-17 herein marked as Annexure – A4.
vi) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 271(1)(c) of the Act dated 24/01/2024 bearing DIN No. ITBA/PNL/S/271(1)(c)/2023-24/1060049842(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure – A5.
vii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271D of the Act dated 24/01/2024 bearing DIN No. ITBA/PNL/S/271D/2023-24/1060049848(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure – A6.
viii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 271(1)(b) of the Act dated 24/01/2024 bearing DIN No. ITBA/PNL/F/271(1)(b)/2023- 24/1060049857(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure – A7.
ix) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order under Section 271F of the Act dated 24/01/2024 bearing DIN No. ITBA/PNL/S/271F/2023-24/1060050256(1), issued by the Respondent No.2 for the assessment year 2016-17 herein marked as Annexure – A8.”
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 notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 03.03.2023 and 11.03.2023 [Annexures – A and A1] were not received by the petitioner and it was not aware of the notices and consequently, the petitioner could not submit its reply/response along with documents to the said notices. 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 the 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 its 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, the petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure – A2 dated 21.03.2023 passed under Section 148A(d) of the IT Act and subsequent notice/orders, etc., and remit the matter back to respondent No.1 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, I pass the following:
ORDER
(i) The petition is hereby allowed.
(ii) Impugned notices/orders at Annexures – A, A1, A2, A3, A4, A5 and A6, A7 and A8 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 Show Cause Notices under Section 148A(b) of the IT Act at Annexures – A dated 03.03.2023 and A1 dated 11.03.2023.
(iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent No.1, who shall consider the same and proceed further in accordance with law.
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