Rahaman Khan Vs the Income Tax Officer — Income Tax | Karnataka HC (2025)

Rahaman Khan Vs the Income Tax Officer — Income Tax | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition allowed; the impugned orders at Annexure-B (Section 148A(d) order dated 31.03.2023) and Annexure-D (assessment order dated 26.02.2024) set aside; matter remitted to respondent No.1 for fresh consideration from the stage of reply to the Section 148A(b) notice dated 25.02.2023, with liberty to the petitioner to submit additional pleadings/documents.

Issue for consideration

Whether the Section 148A(d) order dated 31.03.2023 (Annexure-B) and the consequential assessment order dated 26.02.2024 (Annexure-D) for AY 2019-20 should be set aside, given that the petitioner admittedly did not submit any reply/response with documents to the Section 148A(b) notice dated 25.02.2023.

Court's answer

It is an undisputed fact that the petitioner has not submitted any reply/response along with documents to the Section 148A(b) notice.

Ratio / Principle

In view of the petitioner's specific assertion that his inability and omission to reply to the Section 148A(b) notice was due to bonafide reasons, unavoidable circumstances and sufficient cause, and that he would reply if given one more opportunity, the Court deemed it just and appropriate to set aside the impugned order dated 31.03.2023 passed under Section 148A(d) of the IT Act and subsequent notices/orders, and to remit the matter back to respondent No.1 for reconsideration afresh from the stage of submitting of reply by the petitioner to the Section 148A(b) notice.

Key takeaways

By the operative order, the impugned orders at Annexure-B and D, dated 31.03.2023 and 26.02.2024 respectively, stand set aside (clause (ii) records them as passed by respondent No.2).ratio¶50
The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the notice under Section 148A(b) of the IT Act at Annexure-A dated 25.02.2023.ratio¶52
Liberty is reserved to the petitioner to submit additional pleadings, documents, etc., to the respondent, who shall consider the same and proceed further in accordance with law.

Detailed headnote1 paragraphs

Karnataka HC (S.R. Krishna Kumar, J) — WP 20929/2025 (T-IT), Rahaman Khan v. ITOs, AY 2019-20. Petitioner pleaded non-receipt of the Section 148A(b) Income Tax Act, 1961 notice dated 25.02.2023 (Annexure-A) and hence non-filing of reply. Court recorded that non-submission of reply to the 148A(b) notice was undisputed, accepted the plea of bonafide reasons/unavoidable circumstances/sufficient cause, and allowed the writ petition: set aside the Section 148A(d) order dated 31.03.2023 (Annexure-B) and the consequential assessment order dated 26.02.2024 passed under Sections 147/144B/144 (Annexure-D), remitted the matter to Respondent No.1 for reconsideration afresh from the stage of the reply to the 148A(b) notice, and reserved liberty to the petitioner to file additional pleadings/documents.

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NC: 2025:KHC:41994 WP No. 20929 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF OCTOBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO. 20929 OF 2025 (T-IT)

BETWEEN:

RAHAMAN KHAN AGED ABOUT 53 YEARS, S/O ISMAIL KHAN, NO. A NO.A A R K FUEL STATION, ABDUL KALAM AZAD CIRCLE, B M EXTN. MYSORE – 570 015. PAN NO. ADUPK3399R MOB. NO. 9448064382 EMAIL ID: [email protected]

…PETITIONER

(BY SRI. S. PARTHASARATHI, AND SMT. JINITA CHATTERJEE, ADVOCATES)

AND:

Digitally signed by CHANDANA B M

Location: High Court of Karnataka

THE INCOME TAX OFFICER INCOME TAX DEPARTMENT, WARD 1(1) REAC MYSORE, MYSORE – 570 008.

THE INCOME TAX OFFICER INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, DELHI – 110 001.

…RESPONDENTS

(BY SRI. M. THIRUMALESH, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE DIGITALLY SIGNED IMPUGNED ORDER DATED 31.03.2023 BEARING NO.ITBA/AST/F/148A/2022-23/1051724600(1) FOR AY. 2019-20 PASSED BY RESPONDENT NO.1 WHICH IS PRODUCED AT

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ANNEXURE-B, AS BEING PERVERSE, ILLEGAL AND UNSUSTAINABLE IN LAW, THEREBY DIRECTING RESPONDENT NO.1 TO CANCEL THE ORDER PASSED U/S 148A(D) OF THE ACT AND ETC.,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks for the following reliefs:

“(a) Issue a writ in the nature of certiorari, mandamus, prohibition or any other appropriate writ, order or direction quashing the digitally signed impugned order dated 31.03.2023 bearing No.ITBA/AST/F/148a/202223/1051724600(1) for AY: 2019-20 passed by Respondent No.1 which is produced at ANNEXURE-B, as being perverse, illegal and unsustainable in law, thereby directing Respondent No.1 to cancel the order passed u/s 148A(d) of the Act.

(b) Issue a writ in the nature of certiorari, mandamus, prohibition or any other appropriate writ, order or direction quashing the digitally signed impugned assessment order bearing No.ITBA/AST/S/147/2023-24/1061511476(1) dt: 26.02.2024 for AY: 2019-20 passed by Respondent No.2 which is produced at ANNEXURE-D, as being perverse, illegal and unsustainable in law, thereby directing Respondent No.1 to cancel the order passed u/s 147 r ws 144B r ws 144 of the Act.

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(c) Issue a writ in the nature of Prohibition/ Mandamus or any other appropriate writ, order or direction, the operation of the digitally signed impugned assessment order bearing No.ITBA/AST/S/147/2023-24/1061511476(1) dt. 26.02.2024 for AY: 2019-20 passed by Respondent No.2 (ANNEXURED) and direct the Respondents to cancel the addition made in the hands of the Petitioner.

(d) Issue a writ in the nature of certiorari, mandamus, prohibition or any other appropriate writ, order or direction quashing the digitally signed assessment order bearing No.ITBA/AST/S/147/2023-24/1061511476(1) dt. 26.02.2024 for AY: 2019-20 passed by Respondent No.2 (ANNEXURED).

(e) Issue any other writ, order or direction in favour of the Petitioner, which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

Heard learned counsel for the petitioner and learned

counsel for respondent Nos.1 and 2 and perused the material on record.

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 respondent No.1 under Section 148A(b) of the Income Tax Act, 1961 (for short, ‘IT Act’), dated 25.02.2023 was not received by

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petitioner and he was not aware of the notice and consequently, petitioner could not submit its reply / response along with documents to the said notice. 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) 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.

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.

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

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more opportunity is granted, petitioner would submit reply along with documents, I deem it just and appropriate to set aside the impugned order at Annexure –D dated 31.03.2023 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) notice and to proceed further in accordance with law.

In the result, pass the following:

ORDER

(i) The petition is hereby allowed .

(ii) The impugned orders at Annexure-B and D

dated 31.03.2023 and 26.02.2024 respectively, passed by respondent No.2 is hereby set aside.

(iii) The Matter is remitted back to respondent

No.1 for reconsideration afresh in accordance with law from the stage of submitting of reply to the notice under Section 148A(b) of the IT Act at Annexure – A dated 25.02.2023

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(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

BMC

List No.: 2 Sl No.: 52