Basappa M. Manthesha V. Assessment Unit, Income Tax Department, Ministry of Finance, Delhi and The Income Tax Officer, Ward 1, Davanagere

WP/17153/2024

AI Insights

In this writ petition, Basappa M. Manthesha challenged several notices and orders issued by the Income Tax Department concerning the assessment year 2018-2019. The petitioner contended that he had not received the initial notice under Section 148A(b) of the Income Tax Act, 1961, which was crucial for the subsequent assessments and demands. The petitioner argued that the cash deposits in question were from the sale of rice and were below the taxable limit, thus no return was filed. The court, acknowledging the procedural oversight of not properly serving the notice, set aside all subsequent orders and notices, allowing the petitioner an opportunity to explain the source of the deposits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799576 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: R MURTHY
• Keywords: Assessment; Ex parte order; Income Tax; Notice; Writ petition
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:29147 WP No. 17153 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 17153 OF 2024 (T-IT) BETWEEN: BASAPPA M. MANTHESHA, S/O BASAPPA METI, AGED ABOUT 61 YEARS, NO. 112, BETHUR ROAD, DEVARAJ QUARTERS, DAVANAGERE - 577 001. …PETITIONER (BY SRI. R. RAMA MURTHY, ADVOCATE) AND: 1. ASSESSMENT UNIT, REPRESENTED BY INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, DELHI - 110 001. 2. THE INCOME TAX OFFICER, WARD 1, SHREE OWNERS, HADADI MAIN ROAD, DAVANAGERE - 577 002. …RESPONDENTS (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICES DATED 19-03-2022 ISSUED U/S 148A(b) OF THE ACT (ANNEXURE-B) (ITBA/AST/F/148A(SCN)/2021-22/1041028409 Digitally signed by YAMUNA K L Location: High Court of Karnataka - 2 - NC: 2024:KHC:29147 WP No. 17153 of 2024 (1)) ISSUED FOR THE ASSESSMENT YEAR 2018-2019 BY THE 2ND RESPONDENT AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER (PER: HON'BLE MR JUSTICE S SUNIL DUTT YADAV) The petitioner has challenged the notice issued under Section 148A(b) of the Income Tax Act, 1961 (for short 'the Act') at Annexure-B, the order under Section 148A(d) of the Act at Annexure-C, notice under Section 148 of the Act at Annexure-D, ex-parte order of assessment at Annexure-E and demand notice at Annexure-F. 2. It is the case of the petitioner that he has not replied to the notice under Section 148A(b) of the Act as he was not in the receipt of the notice. It is submitted that the notice was merely uploaded on the e-portal which petitioner was not aware of. It is submitted that the petitioner is in a position to explain that the cash deposit relates to sale of rice and that income was below the - 3 - NC: 2024:KHC:29147 WP No. 17153 of 2024 taxable limit and no return was filed. Accordingly, an opportunity to make out reply to the notice under Section 148A(b) of the Act is sought for. 3. In the order passed under Section 148A(d) of the Act at Annexure-C, the Assessing Officer has observed that the deposits made by the assessee in the bank not having been explained and in the absence of return of income, the matter requires to be proceeded further. 4. Taking note of the submission of the petitioner regarding non-service of notice and that petitioner is in a position to explain the source of deposit made as relating to certain sale transactions, matter could be disposed off by relegating the petitioner to the stage of notice under Section 148A(b) of the Act. 5. Accordingly, the order at Annexure-C, notice at Annexure-D, ex-parte order of assessment at Annexure-E and demand notice at Annexure-F are set aside. Matter is - 4 - NC: 2024:KHC:29147 WP No. 17153 of 2024 relegated to the stage of reply to the notice under Section 148A(b) of the Act. All contentions are kept open. 6. Accordingly, petition is disposed off. Sd/- (S SUNIL DUTT YADAV) JUDGE MCR "