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2025 DAILYLAW 91728 (KAR)

SYED ABU SAYEED v. ASSESSMENT UNIT

WP/28607/2025 · 2025-10-13

S R Krishna Kumar

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 28607 OF 2025 (T-IT) BETWEEN: SYED ABU SAYEED SON OF SYED WAHABSAB AGED ABOUT 48 YEARS PROP.: HINDUSTAN TRADERS, PLOT NO.9, KSRTC BUS DEPOT ROAD, HARAPANAHALLY ROAD, HARIHAR - 577 602. PRESENT ADDRESS: NO.1249(1304) OLD BHARAT OIL MILL COMPOUND, NEAR S.M. WEIGH BRIDGE, OLD P.B. ROAD, HARIHAR - 577 601. PAN: CEFPS3642H …PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. ASSESSMENT UNIT INCOME TAX DEPARTMENT, REP. BY ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISISONER OF INCOME TAX/ INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. 2. THE INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER, WARD-1, DAVANAGERE, SHREE TOWERS, HADADI MAIN ROAD, OPP DRR HOSPITAL, DAVANAGERE, KARNATAKA - 577 002. …RESPONDENTS (BY SRI. M. DILIP, ADVOCATE) Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 142(1) OF THE ACT DATED 15.06.2023 ISSUED BY THE RESPONDENT NO.1 BEARING DIN NO. ITBA/AST/F/142(1)/2023-24/1053726643(1) AND THE SAME IS ENCLOSED AND MARKED AS 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, the petitioner seeks for the following reliefs: "i. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 142(1) of the Act dated 15.06.2023 issued by the Respondent No.1 bearing DIN No. ITBA/AST/F/142(1)/2023-24/1053726643(1) and the same is enclosed and marked as Annexure 'A1'. ii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 26.02.2024 issued by the Respondent No. 1 bearing DIN No. ITBA/AST/F/143(3)(SCN)/2023- 24/1061534357(1) and the same is enclosed and marked as Annexure 'A2'. iii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the assessment order dated 11.03.2024 passed by the Respondent No.1 under section 143(3) read with section 144B of the Income- tax Act, 1961 (hereinafter referred to as "Act") bearing - 3 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 DIN No. ITBA/AST/S/143(3)/2023-24/1062354275(1) and the same is enclosed and marked as Annexure 'A3'. iv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 11.03.2024 issued by the Respondent No.1 bearing DIN & Document Number ITBA/AST/S/322/2023- 24/1062354462(1) and the same is enclosed and marked as Annexure 'A4'. v. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 11.03.2024 issued by the Respondent No.1 under section 156 of the Act bearing DIN & Notice No. ITBA/AST/S/156/2023-24/1062354431(1) and the same is enclosed and marked as Annexure 'A5'. vi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the Show-cause notice dated 11.03.2024 issued by the Respondent No.1 under section 274 read with section 271B of the Act bearing DIN No. ITBA/PNL/S/2718/2023- 24/1062354390(1) and the same is enclosed and marked as Annexure 'B1'. vii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 17.09.2024 passed by the Respondent No.1 under section 2718 of the Act No. bearing DIN ITBA/PNL/F/2718/2024-25/1068831603(1) and the same is enclosed and marked as Annexure 'B2'. - 4 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 viii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 17.09.2024 issued by the Respondent No.1 bearing DIN & Order Number ITBA/PNL/S/2718/2023- 24/1062354390(1) and the same is enclosed and marked as Annexure 'B3'. ix. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 17.09.2024 issued by the Respondent No.1 under section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1068798288(1) and the same is enclosed and marked as Annexure 'B4'. x. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show-cause notice dated 04.08.2023 issued by the Respondent No.1 under section 274 read with section 272A(1) (d) of the Act bearing DIN No. ITBA/PNL/S/272A(1)(d)_FL/ 2023-24/1054873945(1) and the same is enclosed and marked as Annexure 'C1'. xi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 19.10.2023 passed by the Respondent No.1 under section 272A(1)(d) of the Act bearing DIN No. ITBA/PNL/F/272A(1)(d)/202324/1057432609(1) and the same is enclosed and marked as Annexure 'C2'. xii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 19.10.2023 issued by the Respondent No.1 bearing - 5 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 DIN & Order Number ITBA/PNL/S/272A(1)(d)_FL/ 202324/1054873945(1) and the same is enclosed and marked as Annexure 'C3'. xiii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 19.10.2023 issued by the Respondent No.1 under section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2023-24/1057432552(1) and the same is enclosed and marked as Annexure 'C4'. xiv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show-cause notice dated 09.02.2024 issued by the Respondent No.1 under section 274 read with section 272A(1)(d) of the Act bearing DIN No. ITBA/PNL/S/272A(1)(d)_FL/ 2023-24/1060697765(1) and the same is enclosed and marked as Annexure 'D1'. xv. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 09.08.2024 passed by the Respondent No.1 under section 272A(1)(d) of the Act bearing DIN No. ITBA/PNL/F/272A(1)(d)/2024-25/1067560845(1) and the same is enclosed and marked as Annexure 'D2'. xvi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 09.08.2024 issued by the Respondent No.1 bearing DIN & Order Number ITBA/PNL/S/272A(1)(d)_FL/ 2023-24/1060697765(1) and the same is enclosed and marked as Annexure 'D3'. - 6 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 xvii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 09.08.2024 issued by the Respondent No.1 under section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1067559683(1) and the same is enclosed and marked as Annexure 'D4'. xviii. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show-cause notice dated 11.03.2024 issued by the Respondent No.1 under section 274 read with section 270A of the Act bearing DIN No.ITBA/PNL/S/270A/202324/ 1062354388(1) and the same is enclosed and marked as Annexure 'E1'. xix. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the penalty order dated 18.09.2024 passed by the Respondent No.1 under section 270A of the Act bearing DIN No. ITBA/PNL/F/270A/2024-25/1068857419(1) and the same is enclosed and marked as Annexure 'E2'. xx. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the computation sheet dated 18.09.2024 issued by the Respondent No.1 bearing DIN & Order Number ITBA/PNL/S/270A/202324/ 1062354388(1) and the same is enclosed and marked as Annexure 'E3'. xxi. Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the demand notice dated 18.09.2024 issued by the Respondent No.1 under - 7 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 section 156 of the Act bearing DIN & Notice No. ITBA/PNL/S/156/2024-25/1068809668(1) and the same is enclosed and marked as Annexure 'E4'. xxii. And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity." 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that the respondent having issued intimation dated 01.06.2023, notice dated 15.06.2023 under Section 142(1) of the Income Tax Act and Show Cause Notice dated 04.08.2023 under Section 274 read with Section 272A(1)(d) of the Income Tax Act, show cause notice dated 09.08.2023 under Section 272A(1)(d) of the Act, petitioner filed his reply dated 30.08.2023. Respondent No.1 without considering the submissions made by the petitioner, has proceeded to pass the impugned penalty order dated 19.10.2023 under Section 272A(1)(d) of the Act. Subsequently, respondent No.1 issued notice dated 04.01.2024 under Section 142(1) of the Act. The petitioner filed response dated 25.01.2024 requesting for grant of time to furnish the requested documents. Respondent No.1 - 8 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 issued Show Cause Notice dated 09.02.2024 under Section 274 read with Section 272A(1)(d) of the Act. Respondent No.1 issued a notice dated 10.02.2024 under Section 142(1) of the Act and show cause notice dated 26.02.2024, to which petitioner filed a response dated 04.03.2024. Further, respondent No.1 without considering the reply given by the petitioner, passed the assessment order dated 11.03.2024 under Section 143(3) read with Section 144B of the Act and issued show cause notices dated 11.03.2024 under Section 143(3) read with Section 144B of the Act, 11.03.2024 under Section 274 read with Section 271B of the Act, 30.04.2024 under Section 272A(1)(d) of the Act, 30.04.2024 under Section 271B of the Act, 30.04.2024 under Section 270A of the Act, to which petitioner filed response dated 03.07.2024. Thereafter, respondent No.1 passed penalty orders dated 09.08.2024 under Section 272A(1)(d) of the Act, 17.09.2024 under Section 271B of the Act and 18.09.2024 under Section 270A of the Act. Respondent No.2 issued a letter dated 16.07.2025 stating that an amount of Rs.3,51,70,836/- is pending for nature of demand under Section 270A of the Act. Aggrieved by the said notices/orders, petitioner is before this Court by way of the present petition. - 9 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 4. In this context, it is pointed out that inability and omission on the part of the petitioner to participate in the proceedings due to bonafide and unavoidable circumstances and sufficient cause and consequently, the petitioner was not in a position to appear before the respondents and participate in the said proceedings. It is submitted that the petitioner has a good case to urge on merits and if one more opportunity is granted in favour of the petitioner, the petitioner would submit its reply along with the documents and participate in the proceedings and as such, it is necessary that the impugned order at Annexure – A3 be set aside and the matter be remitted back to the respondents by providing one more opportunity to the petitioner to submit its reply to the notices and direct the respondents to proceed further in accordance with law. 5. Per contra, learned counsel for the respondents submits that despite sufficient opportunity being granted in favour of the petitioner, the petitioner did not participate in the proceedings and consequently, the impugned orders does not warrant interference by this Court and the petition is liable to be dismissed. - 10 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 6. A perusal of the impugned order at Annexure – A3 will clearly indicate that the same was passed in the absence of the petitioner, who did not avail the opportunity provided by the respondent, who has proceeded to pass the impugned order. In view of the aforesaid facts and circumstances and specific assertions on the part of the petitioner that due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner was not in a position to send reply enclosing documents and contest the proceedings and in order to provide one more opportunity to the petitioner, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the respondents for reconsideration afresh in accordance with law after providing one more opportunity to the petitioner in this regard. 7. In the result, I pass the following: ORDER (i) The impugned notice dated 15.06.2023 at Annexure-A1, show cause notice dated 26.02.2024 at Annexure-A2, assessment order dated 11.03.2024 at Annexure – A3, computation sheet dated 11.03.2024 at Annexure-A4, demand notice - 11 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 dated 11.03.2024 at Annexure-A5, show cause notice dated 11.03.2024 at Annexure-B1, penalty order dated 17.09.2024 at Annexure-B2, computation sheet dated 17.09.2024 at Annexure- B3, demand notice dated 17.09.2024 at Annexure- B4, show cause notice dated 04.08.2023 at Annexure-C1, penalty order dated 19.10.2023 at Annexure-C2, computation sheet dated 19.10.2023 at Annexure-C3, demand notice dated 19.10.2023 at Annexure-C4, show cause notice dated 09.02.2024 at Annexure-D1, penalty order dated 09.08.2024 at Annexure-D2, computation sheet dated 09.08.2024 at Annexure-D4, demand notice dated 09.08.2024 at Annexure-D4, show cause notice dated 11.03.2024 at Annexure-E1, penalty order dated 18.09.2024 at Annexure-E2, computation sheet dated 18.09.2024 at Annexure- E3 and demand notice dated 18.09.2024 at Annexure-E4, are hereby set aside. (ii) Matter is remitted back for reconsideration afresh to the stage of petitioner submitting reply to Show Cause Notice dated 04.08.2023 and to proceed further in accordance with law. (iii) Liberty is reserved in favour of the petitioner to file its reply, pleadings, documents, etc., before - 12 - HC-KAR NC: 2025:KHC:40457 WP No. 28607 of 2025 respondent No.1, who shall consider the same and pass appropriate orders in accordance with law. (iv) All rival contentions are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE MDS List No.: 2 Sl No.: 42