B C LOKANATHASWAMY V. COMMISSONER OF INCOMET TAX (APPEALS)

WP/24824/2024

AI Insights

The case involves a writ petition filed by B.C. Lokanathaswamy against the Commissioner of Income Tax (Appeals) and other respondents, challenging the validity of re-assessment proceedings and subsequent orders issued under an old, deactivated PAN. The petitioner argued that after the cancellation of his old PAN and the issuance of a new one, all tax-related communications and assessments should have been directed to the new PAN. The court examined the procedural adherence and jurisdictional authority in initiating the re-assessment under the old PAN, ultimately finding in favor of the petitioner.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 691807 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-09-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: MAHESH UPPIN
• Keywords: Assessment Order; Certiorari; Certiorari; Income Tax; Mandamus; PAN
• Section: ITBA/AST/F/148A/2022-23/1051520909(1); ITBA/AST/S/147/2023-24/1059207106(1)

Judgement Text

" - 1 - NC: 2024:KHC:37096 WP No. 24824 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.24824 OF 2024 (T-IT) BETWEEN: B.C. LOKANATHASWAMY, S/O. LATE CHANNAVEERAIAH, AGED ABOUT 64 YEARS, NO.44-2, BASAVANAHALLI KOPPALU, ARAKALGUD TALUK, HASSAN DISTRICT – 573 136. …PETITIONER (BY SRI. MAHESH R UPPIN, ADVOCATE) AND: 1. COMMISSONER OF INCOMET TAX (APPEALS) NATIONAL FACELESS APPEALS CENTRE, ROOM NO.356, C.R.BUILDING, I.P.ESTATE, NEW DELHI – 110 002. 2. ASSESSING OFFICER NATIONAL FACELESS ASSESSMENT CENTRE, DELHI – 110 002. 3. INCOME TAX OFFICER WARD – 1 & TPS, AAYAKAR BHAVAN, 2ND STAGE, BELUR ROAD, HASSAN – 573 201. …RESPONDENTS (BY SRI. M.THIRUMALESH, ADVOCATE) Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:37096 WP No. 24824 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 28/03/2023 BEARING DIN AND NOTICE NO.ITBA/AST/F/148A/2022- 23/1051520909(1) PASSED BY THIRD RESPONDENT MARKED AS ANNX-E BY ISSUING A WRIT IN THE NATURE OF CERTIORARI AND QUASH THE ASSESSMENT ORDER DATED 29/12/2023 PASSED IN ORDER NO.ITBA/AST/S/147/2023-24/1059207106(1) PASSED BY THE R2 UNDER THE OLD DE-ACTIVATED PAN AEQPL2016R MARKED AS ANNX-G BY ISSUING A WRIT IN THE NATURE OF CERTIORARI. 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, petitioner seeks the following reliefs: (i) Quash the order dated 28.03.2023 bearing DIN and Notice No.ITBA/AST/F/148A/2022-23/1051520909(1) passed by third respondent marked as Annexure – E by issuing a writ in the nature of certiorari; (ii) Quash the Assessment Order dated 29.12.2023 passed in Order No.ITBA/AST/S/147/2023-24/1059207106(1) passed by the 2nd respondent under the old de-activated PAN: AEQPL2016R marked as Annexure – G by issuing a writ in the nature of certiorari; OR in the alternative - 3 - NC: 2024:KHC:37096 WP No. 24824 of 2024 (iii) Issue a writ in the nature of mandamus by directing the 1st respondent to dispose of the appeal Annexure J filed by the petitioner in the e-portal dated 22.01.2024 bearing Acknowledgment No.910099370230124 within a period of three months and till the disposal of the said appeal, not to make any demand of Income tax from the petitioner; and (iv) Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.” 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 vide Annexure – A dated 24.01.2023, respondent No.3 – Income Tax Officer addressed a Communication to the petitioner intimating him that his old / erstwhile PAN No.AEQPL2016R has been cancelled and PAN No.ACDPL3925G was retained and that the said PAN No.ACDPL3925G has to be used and petitioner should not use the earlier PAN No.AEQPL2016R any longer and in the event the petitioner were to use the earlier PAN No.AEQPL2016R, proceedings against him would be initiated by the respondents. Subsequently, the petitioner filed his returns under the new PAN No.ACDPL3925G as can be seen from Annexure – B. However, - 4 - NC: 2024:KHC:37096 WP No. 24824 of 2024 despite the petitioner having surrendered the earlier PAN No.AEQPL2016R and started using the new PAN No.ACDPL3925G, respondent proceeded to initiate the impugned proceedings by issuing notice at Annexure – C dated 21.03.2023 in relation to the earlier surrendered PAN No.AEQPL2016R, which culminated in the impugned orders. 4. The aforesaid facts and circumstances clearly establishes that having specifically cancelled the earlier PAN No.AEQPL2016R and directed the petitioner to use the subsequent / new PAN No.ACDPL3925G, pursuant to which the petitioner has also filed his returns, the respondent/s clearly fell in error in initiating re-assessment proceedings against the petitioner in respect of his earlier PAN No.AEQPL2016R, which is not only contrary to the provisions of the Income Tax Act, but also without jurisdiction or authority of law warranting interference by this Court in the present petition. 5. Insofar as the request made by the petitioner to dispose of the appeal filed by him on 22.01.2024, in view of quashment of Annexures – E and G, the said appeal would not survive any longer. - 5 - NC: 2024:KHC:37096 WP No. 24824 of 2024 6. In the result, I pass the following: ORDER (i) The petition is hereby allowed. (ii) The impugned orders at Annexure – E dated 28.03.2023 and Annexure – G dated 29.12.2023 are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 1 Sl No.: 46 "