The Mico Associates Housing Co. Operative Society Limited Vs the Deputy Commissioner of Income Tax

THE MICO ASSOCIATES HOUSING CO-OPERATIVE SOCIETY LIMITED REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959, NO.290/2, 2^ND FLOOR, LAKSHMI ARCADE, H. SIDDAIAH ROAD, WILSON GARDEN, BENGALURU – 560 027 REPRESENTED BY ITS PRESIDENT, SADASHIVA MURTHY, AGED 58 YEARS, S/O T KEMPANNA, R/A 312, 11^TH CROSS, 2^ND BLOCK, VISHWAPRIYANAGARA, BEGUR ROAD, BANGALORE – 560 068. …PETITIONER

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(BY SRI. RAVI SHANKAR S V., ADVOCATE)

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AND:

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Digitally signed by CHANDANA B M Location: High Court of Karnataka

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THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 7(1)(1), BANGALORE – 560 095.

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NATIONAL FACELESS ASSESSMENT CENTRE, ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2^ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110003.

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…RESPONDENTS

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(BY SRI. E.I. SANMATHI, ADVOCATE)

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NC: 2025:KHC:42996 WP No. 30602 of 2025

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HC-KAR

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED U/S 144 R.W.S 144B DATED 21.09.2021 BEARING DIN ITBA/AST/S/144/2021-22/1035760088(1) PASSED BY THE R-2 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNX-A AND ETC.

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THIS PETITION, COMING ON FOR ORDERS , THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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

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ORAL ORDER

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In this petition, petitioner seeks the following reliefs:

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“i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order passed u/s 144 r.w.s 144B dated 21/09/2021 bearing DIN ITBA/AST/S/144/2021-22/1035760088(1) passed by the respondent No.2 for the assessment year 2018-19 herein marked as Annexure - A.

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ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 272A(1)(d) of the Act dated 01/02/2022 bearing DIN No.ITBA/PNL/F/272A(1)(d)/2021-22/1039287789(1) by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure - A1.

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iii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty order u/s 270A of the Act dated 22/02/2022 bearing DIN No. ITBA/PNL/F/270A/2021-22/1040011786(1) by the Respondent No.2 for the assessment year 2018-19 herein marked as Annexure - A2.

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3 - NC: 2025:KHC:42996 WP No. 30602 of 2025

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HC-KAR

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iv) And pass such other orders as this Hon’ble Court deems fit and proper in the interest of justice and equity.”

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Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

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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 dated 17.12.2019 issued by the respondents under Section 142(1) of the Income Tax Act, 1961 (for short, ‘IT Act’) was not received by petitioner as the same was sent to the e-mail id of its previous tax consultant and hence, it 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 142(1) 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.

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NC: 2025:KHC:42996 WP No. 30602 of 2025

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HC-KAR

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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.

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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 142(1) notice dated 17.12.2019. 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 142(1) 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, I deem it just and appropriate to set aside the impugned order at Annexure – A dated 21.09.2021 passed under Section 144 r.w.s. 144B of the Income Tax Act and the order at Annexure-A1 dated 01.02.2022 passed under Section 272A(1)(d) of the Income Tax Act, the order at Annexure-A2 dated 22.02.2022 passed under Section 270A of the Income Tax Act and subsequent notice / orders, etc., and remit the matter back to respondent No.2 for reconsideration afresh from the

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NC: 2025:KHC:42996 WP No. 30602 of 2025

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HC-KAR

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stage of submitting of reply by the petitioner to Section 142(1) notice and to proceed further in accordance with law.

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In the result, pass the following:

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ORDER

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(i) The petition is hereby allowed .

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(ii) The impugned notices / orders at

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Annexures A, A1 and A2 are hereby set aside.

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(iii) Matter is remitted back to respondent No.2 for reconsideration afresh in accordance with law from the stage of submitting of reply to the Show Cause Notice dated 17.12.2019 under Section 142(1) of the IT Act.

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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.

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Sd/(S.R.KRISHNA KUMAR) JUDGE

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SV

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List No.: 2 Sl No.: 46

The Mico Associates Housing Co. Operative Society Limited v. the Deputy Commissioner of Income Tax

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The Mico Associates Housing Co. Operative Society Limited v. the Deputy Commissioner of Income Tax

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