Karnataka HC Quashes IT Notice U/S 148, Allows Petitioner to Submit Reply for Bona Fide Omission

The Karnataka High Court in a ruling has quashed the income tax notice u/s 148 of the Income Tax Act, 1961 and granted the applicant an opportunity to provide the answers to the income tax department as the omission was due to bonafide causes.

The writ petition in this matter was furnished via the applicant, Varaha Builders against the notices issued via the department under sections 148A(b) and 148 of the Income Tax enactment for the AY 2016-17. The petition argued via the applicant that the notices were neither obtained nor answered due to bona fide causes, which leaves them unable to show their matter or provide the assisting documents.

The counsel claimed that the applicant does not have merit on behalf of the department and must be dismissed.

It was marked by the bench that the impugned order specifies that the applicant does not provide a response or documents in answer to the section 148A(b) notices.

The bench has set aside the impugned order dated 21.03.2023 u/s 148A(d) of the Income Tax Act, 1961, and pertinent notices and orders via acknowledging the applicant’s claim that the omission to file a response was because of the bona fide causes and unavoidable situations and that they are now prepared to provide the response with the documents if provided the additional chance.

The bench also marked that “Liberty is reserved in favor of the petitioner to submit additional pleadings, documents, etc., to the respondent No. 1, who shall consider the same and proceed further in accordance with law”.

Justice S.R. Krishna Kumar remitted the matter back to the income tax officer for reconsideration from the phase of the response submission and asked that it be dealt with as per the regulations.