AKASH GOPAL AGARWAL V. THE INCOME TAX OFFICER

WP/103922/2023

AI Insights

The case involves Akash Gopal Agarwal, the petitioner, who challenged several notices and an order issued by the Income Tax Department concerning the assessment year 2019-20. The petitioner argued that the notices were issued without jurisdiction as the transactions in question occurred in 2013, well before the three-year period required for reopening assessments under Section 149(1)(A) of the Income Tax Act, unless specific conditions were met. The court examined the timing of the transactions and the applicable legal provisions, ultimately deciding in favor of the petitioner.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 751292 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 26-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: RAVISHANKAR; SHASHANK HEGDE
• Keywords: Assessment Year 2019-20; Income Tax; Jurisdiction; Notice Quashing; Writ of Certiorari
• Section: 148; 139(4); 151; 148A(b); 148A(d); 149(1)(a)

Judgement Text

" - 1 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 26TH DAY OF SEPTEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 103922 OF 2023 (T-IT) BETWEEN: AKASH GOPAL AGARWAL, S/O. SRI GOPAL AGARWAL, AGED ABOUT 31 YEARS, H.NO. 28/31 AGARWAL KUNJ, SARVODAYA COLONY, GADAG-582103. PAN: AVXPA4485F. …PETITIONER (BY SRI. RAVISHANKAR S. V. ADV., AND SRI. SHASHANK S. HEGDE, ADV.) AND: 1. THE INCOME TAX OFFICER, WARD-1, C.R. BUILDING, NAVANAGAR, HUBBALLI, DIST: DHARWAD-580025. 2. THE PRINCIPAL COMMISSIONER OF INCOME TAX, THE OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX, HUBLI, C.R. BUILDING, NAVANAGAR, HUBBALLI, DHARWAD-580025. …RESPONDENTS (BY SRI Y. V. RAVIRAJ, ADVOCATE) MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR - 2 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 THIS WRIT PETITION IS FILED UNDER ARTICLE 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 ISSUED UNDER SECTION 148A(B) OF THE ACT DATED 27/03/2023 BEARING DIN NO.ITBA/AST/F/148A(SCN)/2022-23/1051409843(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE-A1; ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE ORDER PASSED U/S 148A(D) DATED 30/03/2023 BEARING DIN AND DOCUMENT NO.ITBA/AST/F/148A/2022-23/1051683753(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE-A2; ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE U/S 148 OF THE ACT DATED 30/03/2023 BEARING DIN NO.ITBA/AST/S/148 1/2022-23/1051684591(1) BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE-A3; ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE UNSIGNED SANCTION DATED 30/03/2023 ISSUED U/S 151 OF THE ACT BEARING DIN AND NOTICE NO.ITBA/AST/S/118/2022-23/1051682916(1) BY THE RESPONDENT NO.2 FOR THE ASSESSMENT YEAR 2019-20 HEREIN MARKED AS ANNEXURE-A4. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: - 3 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 ORDER Captioned petition is filed by the petitioner-assessee assailing the impugned notice issued under section 148A(b) of the Income Tax Act (for short \"the Act\") vide Annexure- A1, the order passed under section 148A(d) of the Act vide Annexure-A2, the notice issued under Section 148 of the Act vide Annexure-A3 and the unsigned sanction order issued under section 151 of the Act vide Annexure-A4 by the respondent-authorities. 2. The petitioner, who is an individual, earning income from salary, income from house property and other sources, claims that he has filed income tax returns under Section 139(4) of the Act declaring total income of Rs.5,09,920/- for the assessment year 2014-15. He further claims that he has also filed income tax returns declaring total income of Rs.5,87,180/- for the assessment year 2019- 20. In this petition, the demand notice issued by respondent No.1 under Section 148(A)(d) of the Act is under challenge by the petitioner herein on the ground that the authorities would lose jurisdiction and no notice under Section 148 of - 4 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 the Act can be issued for relevant assessment year if three years are lapsed from the end of relevant assessment year unless the case falls under Clause-(b) to Section 149 of the Act. 3. It is the specific case of the petitioner that though the disputed income on sale transaction is of the year 2019, the payment in fact was made in 2013. This fact is substantiated by the petitioner-assessee by placing reliance on confirmation deed as well as sale deed, which are produced at Annexures-C1, C2 and C3. Annexure-C1 and C2 are confirmation deeds. 4. To counter the contents of sale deed, which prima facie indicates that this disputed payment was made in 2013 itself, no material is placed by the respondent-Authority, which would warrant investigation. The payments in respect of which the authorities now intend to hold an enquiry and reopen the assessment is squarely hit by Section 149(1)(A) of the Act. It is also not in dispute that the disputed amount being less than Rs.50,00,000/-, the period of limitation prescribed is three years from the end of relevant - 5 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 assessment year. The contention of authorities that the relevant assessment year has to be taken from the date of execution of sale deed, which is 2019, cannot be acceded to. If payments indicated in the sale deed are made in the year 2013 itself, no proceedings can be initiated as there is a time limit for issuance of notice under Section 149(1) of the Act. In that view of the matter, the notice issued under section 148A(b) of the Act vide Annexure-A1, the order passed under section 148A(d) of the Act vide Annexure-A2, the notice issued under Section 148 of the Act vide Annexure-A3 and the unsigned sanction issued under section 151 of the Act vide Annexure-A4 deserve to be quashed. For the foregoing reasons, I proceed to pass the following: ORDER i) The writ petition is allowed. ii) The notice issued under section 148A(b) of the Act vide Annexure-A1, the order passed under section 148A(d) of the Act vide Annexure-A2, the notice issued under Section 148 of the Act vide Annexure-A3 and the unsigned sanction - 6 - NC: 2023:KHC-D:11322 WP No. 103922 of 2023 issued under section 151 of the Act vide Annexure-A4 are hereby quashed. iii) In view of disposal of the petition, pending interlocutory applications, if any, do not survive for consideration and are disposed of accordingly. Sd/- JUDGE YAN List No.: 1 Sl No.: 9 "