BHARAMAPPA S/O BASAPPA YERIMANI V. ADDITIONAL COMMISSIONER OF INCOME TAX

CCC/100155/2022

AI Insights

This case involves a civil contempt petition filed by complainants against various officials of the Income Tax Department, alleging willful disobedience of interim orders issued by the High Court of Karnataka. The interim orders were related to stays on notices issued under the Income Tax Act and the Prohibition of Benami Property Transactions Act, concerning the complainants' assessments for several years. Despite these orders, the respondents continued to issue notices to the complainants, leading to the filing of the contempt petition. The court, after hearing the arguments and reviewing the materials, decided to restrain the respondents from taking any further action on the notices until the related writ petitions are resolved.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 765629 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-08-2023
• Assessment Year: misc
• Other Referred Cases: WP No.105223/2021, WP No.100380/2022, WP No.101423/2022
• Laws Referred To: Contempt of Courts Act, 1971, Income Tax Act, 1961, Prohibition of Benami Property Transactions Act, 1988, Constitution of India, 1950
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ
• Assessee Lawyers: AMITKUMAR DESHPANDE
• Keywords: Benami property; Civil Contempt; Contempt proceedings; Income Tax; Interim stay order
• Section: 148; 11; 12; 215

Judgement Text

" - 1 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 30TH DAY OF AUGUST, 2023 PRESENT THE HON'BLE MR JUSTICE S.R. KRISHNA KUMAR AND THE HON'BLE MR JUSTICE G BASAVARAJA CIVIL CONTEMPT PETITION NO. 100155 OF 2022 BETWEEN: 1. BHARAMAPPA S/O. BASAPPA YERIMANI, AGE: 56 YEARS, OCC: SERVICE, BLOCK A 608, SHINDE COMPLEX, NEELIGIN ROAD, HUBLI-580029, 2. RISINGSUN AGENCIES REPRESENTED BY ITS PARTNER KIRAN S/O. RAMANATH MAHINDRAKAR, AGE: 57 YEARS, D-125 GF, SHINDE COMPLEX, NEELIGIN ROAD, HUBBALLI-580029. DHARWAD DISTRICT, STATE KARNATAKA. 3. HUBLI CIGARETTE ENTRE REPRESENTED BY ITS PARTNER VINAY S/O. MADHUKAR MAHINDRAKAR, AGED 50 YEARS, B 129, GF SHINDE COMPLEX, NEELIGIN ROAD, HUBBALLI-580029, DHARWAD DISTRICT, STATE KARNATAKA. …COMPLAINANTS (BY SRI.AMITKUMAR DESHPANDE, SENIOR COUNSEL FOR SRI.MANOJKUMAR PUKALE, ADVOCATE) AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE, C BLOCK, 4TH FLOOR, S.P.M. CIVIL CENTRE, NEW DELHI-110001. 2. CHIEF COMMISSIONER OF INCOME TAX (REGIONAL ASSESSMENT CENTRE), JAGADISH T R HIGH COURT OF KARNATAKA 2023.09.05 12:39:56 +0530 - 2 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 BNG C.R. BUILDING, NO.1 QUEEN'S ROAD, BENGALURU-560001. 3. CHIEF COMMISSIONER OF INCOME TAX REFAC, 2ND FLOOR, AAYAKAR BHAVAN, E.D.C. COMPLEX, PATTO PLAZA, PANAJI-403001. 4. INCOME TAX OFFICER (INVESTIGATION) O/O ASST. DIRECTOR OF INCOME TAX (INVESTIGATION), INCOME TAX OFFICE, C.R. BUILDING ANNEXE, P.B. ROAD, NAVANAGAR, HUBBALLI-580025. 5. INCOME TAX OFFICER W1(1) HUBBALLI, 1ST FLOOR, INCOME TAX OFFICE, C.R. BUILDING, P.B. ROAD, NAVANAGAR, HUBBALLI-580025. 6. INCOME TAX OFFICER (BENAMI PROHIBITION) PNJ., 7. JNT/DEPUTY COMMISSIONER OF INCOME TAX (BPU), ADDRESS OF SL.NO.6 AND 7: TRI STAR BUILDING, EDC COMPLEX, PATTO PLAZA, PANANJI GOA-403002. 8. DEPUTY COMMISSIONER OF INCOME TAX CPC., CENTRAL PROCESSING CENTRE INCOME TAX DEPARTMENT ELECTRONIC CITY, POST OFFICE, BENGALURU-560100. …ACCUSED (BY SRI.Y.V.RAVIRAJ, ADVOCATE OFR A1 TO A8) THIS CONTEMPT PETITION IS FILED UNDER SECTION 11 AND 12 OF THE CONTEMPT OF COURTS ACT, 1971, R/W. ARTICLE 215 OF CONSTITUTION OF INDIA,1950, PRAYING TO INITIATE CONTEMPT PROCEEDING AGAINST THE ALLEGED CONTEMNORS A-5 AND A-6 FOR WILFULLY AND DELIBERATELY DISREGARDING THE NOTICES OF THIS COURT ORDER DATED 14/02/2022 IN WP.100380/2022 IN ANNEXURE-P10 AND DISOBEYING THE INTERIM STAY ORDER DATED 7.2.2022 OF THIS COURT PASSED IN WP.105223/2021 IN ANNEXURE-P-17. THIS CONTEMPT PETITION COMING ON FOR ORDERS, THIS DAY, S.R.KRISHNA KUMAR J., PASSED THE FOLLOWING: - 3 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 ORDER This contempt proceedings arises out of the alleged disobedience of the interim order dated 7.2.2022 passed in WP No.105223/2021 and the order dated 14.02.2022 passed in WP No.100380/2022. 2. Heard the learned senior counsel Sri.Amitkumar Deshpande appearing for the complainants and learned counsel for the respondents/Revenue and perused the material on record. 3. The material on record discloses that aggrieved by the notice under Section 148 of the Income Tax Act, 1961 (for short, ‘IT Act’), issued by the respondents, the complainants approached this Court in WP No.105223/2021, in which on 7.2.2022, this Court passed an interim order of stay of all further proceedings pursuant to notice dated 27.3.2021 in respect of Assessment Year 2016-17 and 2017-18. The said writ petition is pending adjudication before this Court. Subsequently, despite the said stay order dated 7.2.2022, respondents issued one - 4 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 more notice dated 21.02.2022 to the complainants herein invoking the provision of Prohibition of Benami Property Transactions Act, 1988, which was challenged in WP No.100380/2022, which is also pending adjudication before this Court. Thereafter, one more writ petition in WP No.101423/2022 is filed challenging the notice dated 15.03.2022 issued in respect of Assessment Year 2018-19, in which there is an interim order of stay dated 7.4.2022 restraining the respondents from proceeding further in the matter. 4. It is the grievance of the complainants that despite the aforesaid interim orders passed in WP No.101423/2022 and WP No.105223/2021 and pendency of WP No.100380/2022, the respondents are proceeding further in relation to same subject matter pertaining to same complainants/assessees, as such, the complainants are before this Court by way of present contempt proceedings. - 5 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 5. Per contra, learned counsel for the respondents/Revenue in addition to reiterating the various grounds urged in the statement of objections submits that in view of pendency of the proceedings in WP No.105223/2021, WP No.100380/2022 and WP No.101423/2022 and the aforesaid interim orders passed in favour of the complainants/writ petitioners/assessees, the respondents would not take precipitative/coercive steps as against the complainants in relation to the subject matter of all the three writ petitions. 6. In view of the aforesaid facts and circumstances of the case and submission made at the Bar and also in the light of Section 22 of the Contempt of Courts Act, 1971, we deem it just and appropriate to dispose off the present contempt proceedings directing, clarifying and reiterating that till disposal of WP Nos.105223/2021, 100380/2022, 101423/2022, respondents/accused shall not take any precipitative/coercive steps against the - 6 - NC: 2023:KHC-D:9729-DB CCC No. 100155 of 2022 complainants in relation to the subject matter of the said writ petitions. 7. Subject to the aforesaid directions, contempt proceedings are disposed off, reserving liberty in favour of the complainants to take recourse to such remedies as available in law as well as seeking revival/reopening of the present contempt proceedings, if the occasion so arises. Sd JUDGE Sd JUDGE JTR List No.: 1 Sl No.: 6 "