Karnataka High Court
V Channanarasimhaiah Rajanna vs Assessment Unit on 17 April, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:15938
WP No. 11515 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 17TH DAY OF APRIL, 2025
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION No.11515 OF 2025 (T-IT)
BETWEEN:
V CHANNANARASIMHAIAH RAJANNA
AGED 66 YEARS AND
S/O V. CHANNA NARASIMHAIAH,
RESIDING AT SY NO.34, MAIN ROAD,
KAMAKSHIPALYA, BANGALORE - 560 079.
...PETITIONER
(BY SRI PREETHAM JUDE CORREA, ADVOCATE)
AND:
1. ASSESSMENT UNIT
INCOME TAX DEPARTMENT,
REP. BY:ADDITIONAL/JOINT/DEPUTY,
ASSISTANT COMMISSIONER OF INCOME TAX,
INCOME TAX OFFICER,
INCOME TAX DEPARTMENT,
MINISTRY OF FINANCE, ROOM. NO.401,
Digitally
signed by 2ND FLOOR, E-RAMP,
MALATESH JAWAHARLAL NEHRU STADIUM,
KC DELHI-110 003
Location:
HIGH 2. INCOME TAX OFFICER,
COURT OF WARD 6(2)(1), BANGALORE,
KARNATAKA BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK,
KORAMANGALA, BANGALORE - 560 095
3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1,
BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK,
KORAMANGALA, BANGALORE-560 095.
...RESPONDENTS
(BY SRI M.DILIP, ADVOCATE)
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NC: 2025:KHC:15938
WP No. 11515 of 2025
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
ASSESSMENT ORDER DATED 19.03.2024 WITH DIN
ITBA/AST/S/147/2023-24/1062892748(1) PASSED BY THE 1
RESPONDENT UNDER SECTION 147 R/W SECTION 144 R/W
SECTION 144B OF THE INCOME TAX ACT, 1961 AT ANNEXURE
A1 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:
i. "Assessment Order dated 19.03.2024 with DIN ITBA/AST/S/147/2023-24/1062892748(1) passed by the 1st Respondent under Section 147 r/w Section 144 r/w Section 144B of the Income Tax Act, 1961 at ANNEXURE A1.
ii. Computation Sheet dated 19.03.2024 with DIN ITBA/AST/S/319/2023-24/1062893020(1) issued by the 1st Respondent at ANNEXURE A2.
iii. Demand Notice 19.03.2024 dated with DIN ITBA/AST/S/156/2023-24/1062893052(1) issued by the 1st Respondent at ANNEXURE A3.
iv. Penalty Order dated 05.09.2024 with DIN ITBA/PNL/F/272A(1)(d)/2024-25/1068364850 (1) passed by the 1st Respondent under Section 272A(1)(d) of the Act at ANNEXURE-A4. -3-
NC: 2025:KHC:15938 WP No. 11515 of 2025 v. Computation Sheet dated 05.09.2024, for the penalty order under Section 272A(1)(d), with DIN ITBA/PNL/S/272A(1)(d)_FL/2023/1062886049(1) issued by the 1st Respondent at ANNEXURE-A5. vi. Demand Notice dated 05.09.2024, for the penalty order under Section 272A(1)(d), with DIN ITBA/PNLS/156/2024-25/1068363226(1) issued by the 1st Respondent at ANNEXURE A6.
vii. Penalty Order dated 25.09.2024 with DIN ITBA/PNL/F/270A/2024-25/1069145432(1) passed st by the 1 Respondent under Section 270A of the Act at ANNEXURE A7.
viii. Computation Sheet dated 25.09.2024, for the penalty order under Section 270A, with DIN ITBA/PNL/S/270A/2023-24/1062893134(1) issued by the 1st Respondent at ANNEXURE A8.
ix. Demand Notice dated 25.09.2024, for the penalty order under Section 270A, with DIN ITBA/PNL/S/156/2024-25/1069145296(1) issued by the 1st Respondent at ANNEXURE-A9.
x. Show-Cause Notice dated 27.02.2023 with DIN ITBA/AST/F/148A(SCN)/2022-23/1050168224(1) issued by the 2nd respondent under Section 148A(b) of the Act at Annexure-B1.
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NC: 2025:KHC:15938 WP No. 11515 of 2025 xi. Show-cause notice dated 10.03.20223 with DIN ITBA/AST/F/148A(SCN)/2022-23/ 1050576117 (1) issued by the 2nd respondent at Annexure-B2. xii. Order dated 21.03.2023 with DIN ITBA/ AST/F/ 148A/ 2022-23/ 1051030555 (1) passed by the 2nd respondent under Section 148A(d) of the Act at Annexure-B3.
xiii. Notice dated 21.03.2023 with DIN ITBA/AST/S/148_1/2022-23/1051030949(1) passed by the 2nd Respondent under Section 148 of the Act at ANNEXURE B4."
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 148A(b) of the Income Tax Act, 1961 (for short, 'IT Act'), was not received by petitioner and he was not aware of the notice and consequently, petitioner could not submit his reply/response along with documents to the said notice. It is submitted that -5- NC: 2025:KHC:15938 WP No. 11515 of 2025 the inability and omission on the part of the petitioner to submit reply/response along with documents to the Section 148A(b) 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 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 submitted reply/response along with documents to Section 148A(b) notice. Under these circumstances, in view of the specific assertion on the part of the petitioner that his inability and omission to submit a reply along with documents to Section 148A(b) 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, -6- NC: 2025:KHC:15938 WP No. 11515 of 2025 I deem it just and appropriate to set aside the impugned orders at Annexures-A1 dated 19.03.2024 passed under Section 147 r/w Section 144 r/w Section 144B of the Income Tax Act, 1961, Annexures-A2 and A3 dated 19.03.2024, Annexures-A4 to A6 dated 05.09.2024 passed under Section 272A(1)(d) of the Income Tax Act, 1961, Annexures-A7 to A9 dated 25.09.2024 passed under Section 270A of the Income Tax Act, 1961, Annexures-B3 and B4 dated 21.03.2023 passed under Section 148A(d) and Section 148 of the Income Tax 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) notice and to proceed further in accordance with law.
6. In the result, pass the following:
ORDER
(i) The petition is hereby allowed.
(ii) Impugned notices/orders at Annexures-A1 to A9, B3 and B4 are hereby set aside.-7-
NC: 2025:KHC:15938 WP No. 11515 of 2025
(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 Notice under Section 148A(b) of the IT Act at Annexure-B1 dated 27.02.2023 and show cause notice dated 10.03.2023 at Annexure-B2.
(iv) Liberty is reserved in favour of the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE kcm List No.: 1 Sl No.: 34