Karnataka High Court
Vishala Karnataka Govt And Private ... vs The Income Tax Officer on 24 April, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:16867
WP No. 11225 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 24TH DAY OF APRIL, 2025
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 11225 OF 2025 (T-IT)
BETWEEN:
VISHALA KARNATAKA GOVT AND PRIVATE
EMPLOYEES HOUSING CO OP SOCIETY LIMITED
PREVIOUSLY AT NO. 456
10TH A CROSS
UTTARAHALLIL MAIN ROAD
KESHAV NAGAR NEAR DODDAGGOUNDANAPALYA
BENGALURU - 560 061.
PRESENTLY AT NO. 318
10TH CROSS, 20TH MAIN, F BLOCK,
SAHAKARANAGAR
BENGALURU - 560 092.
REP. BUY ITS PRESIDENT
SRI JAYANNA .B.R
SON OF SRI RAMANNA
AGED ABOUT 49 YEARS
REG. UNDER CO-OPERATIVE SOCIETY ACT, 1960.
Digitally signed by
NAGARAJA B M ...PETITIONER
Location: HIGH
COURT OF (BY SRI. SHREEHARI KUTSA, ADVOCATE)
KARNATAKA
AND:
1. THE INCOME TAX OFFICER
WARD 3(2)(1), BENGALURU
AN AUTHORITY UNDER
THE INCOME TAX ACT, 1961
BMTC BUILDING, 80 FEET ROAD
6TH BLOCK, NEAR KHB GAMES VILLAGE
KORAMANGALA, BENGALURU - 560095.
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WP No. 11225 of 2025
2. PRINCIPAL COMMISSIONER OF INCOME TAX
BENGALURU - 1
THE SPECIFIED AUTHORITY UNDER
SECTION 151 OF THE INCOME TAX ACT, 1961
BMTC BUILDING, 80 FEET ROAD
6TH BLOCK, NEAR KHB GAMES VILLAGE
KORAMANGALA
BENGALURU - 560095.
3. NATIONAL FACELESS ASSESSMENT CENTRE (NFAC)
A CENTRE DESCRIBED UNDER SECTION 144B
OF THE INCOME TAX ACT, 1961
ROOM NO. 401, 2ND FLOOR, E-RAMP,
JAWAHARLAL NEHRU STADIUM
DELHI - 110 003.
REP. BY PR. CHIEF COMMISSIONER
OF INCOME TAX (NEAC)
4. ASSESSMENT UNIT
A UNIT CREATED UNDER SECTION 144B
OF THE INCOME TAX ACT, 1961
ROOM NO.401, 2ND FLOOR, E-RAMP
JAWAHARLAL NEHRU STADIUM
DELHI - 110 003.
REP. BY PR. CHIEF COMMISSIONER OF
INCOME TAX (NEAC)
5. NATIONAL FACELESS APPEAL
CENTRE (NFAC) DELHI
THE APPELLATE AUTHORITY UNDER
THE INCOME TAX ACT, 1961
ROOM NO. 401, C BLOCK
CIVIC CENTRE, DELHI - 110 002.
REP. BY PR. CHIEF COMMISSIONER
OF INCOME TAX (NEAC)
6. INCOME TAX OFFICER
WARD 6(3)(1), BENGALURU
THE RECOVERY OFFICER
BMTC BUILDING, 80 FEET ROAD
6TH BLOCK, NEAR KHB GAMES VILLAGE
KORAMANGALA, BENGALURU - 560095.
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WP No. 11225 of 2025
7. THE BRANCH MANAGER
KARNATAKA STATE APEX BANK LTD.
NO.777, NTI LAYOUT, 2ND PHASE
RAJEEV GANDHI NAGAR
SAHKAR NAGAR, 2ND STAGE
BENGALURU - 560097.
...RESPONDENTS
(BY SRI. THIRUMALESH .M, ADVOCATE FOR R1;
SRI. DILIP, ADVOCATE FOR R2 TO R6)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO QUASHING OF THE
DIGITALLY SIGNED AND ELECTRONICALLY COMMUNICATED
NOTICE UNDER SECTION 148A(B) OF THE INCOME TAX ACT,
1961, DATED 03/02/2023 ISSUED BY THE RESPONDENT NO. 1
FOR THE ASSESSMENT YEAR 2019-20 WHICH BEARS THE DIN
VIZ. ITBA/AST/F/148A(SCN)/2022-23/1049388274(1) AND
ENCLOSED AS ANNEXURE B1 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
In this petition, petitioner seeks the following reliefs:
"WHEREFORE, the petitioner most respectfully prays before this Hon'ble Court as under-
a. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 148A(b) of the Income Tax Act, 1961, dated 03/02/2023 issued by the respondent No.1 for the Assessment Year 2019-20 which bears the -4- NC: 2025:KHC:16867 WP No. 11225 of 2025 DIN viz. ITBA/AST/F/148A(SCN)/2022-23/1049388274(1) and enclosed as Annexure B1.
b. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 148A(b) of the Income Tax Act, 1961, dated 11/02/2023 issued by the respondent No.1 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/AST/F/148A(SCN)/2022-23/1049649633(1) and enclosed as Annexure B2.
c. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 148A(b) of the Income Tax Act, 1961, dated 14/03/2023 issued by the Respondent No.1 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/AST/F/148A(SCN)/2022- 23/1050757585(1) and enclosed as Annexure B3.
d. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated order under section 148A(d) of the Income Tax Act, 1961, dated 31/03/2023 issued by the Respondent No.1 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/AST/F/148A/2022- 23/1051778265(1) and enclosed as Annexure D. e. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 148 of the Income Tax Act, 1961, dated 31/03/2023 issued by the respondent No.1 for the Assessment Year 2019-20 which bears the -5- NC: 2025:KHC:16867 WP No. 11225 of 2025 DIN viz. ITBA/AST/S/148_1/2022-23/1051778830(1) and enclosed as Annexure E. f. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated assessment order under section 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 dated 21/03/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz., ITBA/AST/S/147/2023-24/1063110347(1) and enclosed as Annexure N1.
g. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under Section 156 of the Income Tax Act, 1961 dated 21/03/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/AST/S/156/2023- 24/1063110633(1) and enclosed as Annexure N2.
h. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated computation sheet dated 21/03/2024 issued by the respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz., Itbs/Ast/S/519/2023- 24/1063110533(1) and enclosed as Annexure N3.
i. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated order under section 272A(1)(d) of the Income-Tax Act, 1961 dated 12/09/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which -6- NC: 2025:KHC:16867 WP No. 11225 of 2025 bears the DIN viz., ITBA/PNL/F/272A(1)(D)/2024- 25/1068604425(1) and enclosed as Annexure P1.
j. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice of demand under section 156 of the Income Tax Act, 1961 dated 12/09/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/PNL/S/156/2024- 25/1068597685(1) and enclosed as Annexure P2.
k. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated show cause notice for penalty under section 271AAC(1) of the Income Tax Act, 1961, dated 24/04/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/PNL/F/271AAC(1)/ 2024-25/1064329737(1) and enclosed as Annexure P3.
l. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated show cause notice for penalty under section 271A of the Income Tax Act, 1961, dated 30/03/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/PNL/F/271A/2023-24/1063686771(1) and enclosed as Annexure P4.
m. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated show cause notice for penalty under -7- NC: 2025:KHC:16867 WP No. 11225 of 2025 section 270A of the Income Tax Act, 1961, dated 24/04/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/PNL/F/270A/2024-25/1064329532(1) and enclosed as Annexure P5.
n. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated show cause notice for penalty under section 271B of the Income Tax Act, 1961, dated 24/04/2024 issued by the Respondent No.4 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/PNL/F/2718/2024-25/1064329586(1) and enclosed as Annexure P6.
o. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice dated 22/05/2025 directing to make payment of income tax demand issued by the Respondent No.6 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/COM/F/17/2024-25/1065074095(1) and enclosed as Annexure R. p. Issue a writ of certiorari or any other suitable writ for quashing of the digitally signed and electronically communicated notice under section 226(3) of the Act, dated 21/02/2025 issued by the Respondent No.6 for the Assessment Year 2019-20 which bears the DIN viz. ITBA/RCV/S/226(3)_1/2024-25/1073559856(1) and enclosed as Annexure S. -8- NC: 2025:KHC:16867 WP No. 11225 of 2025 q. Issue writ of mandamus or any other suitable writ for directing the respondent No.7 to allow the petitioner to operate his bank account having saving bank account No.1056102040000005 that is mentioned at Annexure S. r. Grant such other reliefs as this Hon'ble Court deems fit in this matter including but not limited to COST OF THIS PETITION."
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 148 of the Income Tax Act, 1961 (for short, 'IT Act'), was not received by petitioner and was not aware of the notice and consequently, petitioner could not file its returns of income to the said notice. It is submitted that the inability and omission on the part of the petitioner to file its returns of income to the Section 148 notice 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 -9- NC: 2025:KHC:16867 WP No. 11225 of 2025 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 filed its returns of income to Section 148 notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that its inability and omission to file its returns of income to Section 148 notice was due to bonafide reasons, unavoidable circumstances and sufficient cause and if one more opportunity is granted, petitioner would file its returns of income, I deem it just and appropriate to set aside the impugned orders at Annexures-N1, N2, N3, P.1, P.2, P.3, P.4, P.5, P.6, R and S passed under Section 148 of the Income Tax Act and remit the matter back to the respondents for re-consideration afresh to the stage of the petitioner filing its returns of income to notice under Section 148 and proceed further in accordance with law.
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6. Learned counsel for the petitioner has filed a memo stating that he has withdrawn the appeal filed before respondent No.5 and the same is taken on record.
7. In the result, pass the following:
ORDER
(i) The petition is hereby allowed.
(ii) The impugned orders at Annexures- N1, N2, N3, P.1, P.2, P.3, P.4, P.5, P.6, R and S are set aside.
(iii) The matter is remitted back to the respondents to the stage of petitioner filing its returns of income to Annexure-E dated 31.03.2023 and proceed further in accordance with law.
(iv) Liberty is reserved in favour of the petitioner to submit reply, pleadings, documents etc. Sd/-
(S.R.KRISHNA KUMAR) JUDGE NBM List No.: 2 Sl No.: 26