Dr. Giridhar Kadakol V. National Faceless Assessment Centre and Income Tax Officer Ward 1 and TPS Ward 3(3) (1)

WP/12242/2022

AI Insights

Dr. Giridhar Kadakol, the petitioner, challenged the assessment order for the assessment year 2016-17, which erroneously recorded the stamp duty paid on a property sale as Rs.2,75,63,500 instead of Rs.2,75,635. This error led to the incorrect classification of the amount as unexplained money under Section 69A of the Income Tax Act. The petitioner argued that his objections were not considered by the National Faceless Assessment Centre, leading to the writ petition under Articles 226 and 227 of the Constitution of India. The court agreed that the petitioner's objections were overlooked and set aside the assessment order, directing a fresh assessment.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798823 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 01-07-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: THIRUMALESH
• Keywords: Assessment Order; Income Tax; Re-assessment; Unexplained money; Writ petition
• Section: 147; 69A; 144B; 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 01ST DAY OF JULY, 2022 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO.12242 OF 2022 (T-IT) BETWEEN: DR. GIRIDHAR KADAKOL AGED 66 YEARS S/O LATE SRI K VIJAYA RAO FLAT NO.202 SIRI RISHAB RESIDENCY, NO.78, 4TH MAIN, EAST REVENUE, BANASHANKARI 3RD STAGE BENGALURU-560085 … PETITIONER (BY SRI.THIRUMALESH.M., ADVOCATE) AND: 1. NATIONAL FACELESS ASSESSMENT CENTRE REPRESENTED BY COMMISSIONER OF INCOME TAX NO.412-413, 1ST FLOOR, OPP METRO PILLAR NO.793 DWARKA MOR, DELHI-110059 2. INCOME TAX OFFICER WARD 1 AND TPS WARD 3(3) (1) HMT BHAWAN NO.59, BELLARY ROAD, GANGANAGAR BENGALURU-560032 ... RESPONDENTS (BY SRI.K.V.ARAVIND, ADVOCATE) 2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ASSESSMENT ORDER PASSED FOR THE ASST YEAR 2016-17 UNDER SECTION 147 READ WITH SECTION 144B OF THE INCOME TAX ACT DTD.31.3.2022 BY THE R-1 NATIONAL FACELESS ASSESSMENT CENTRE IN ITBA/AST/S/1472021- 22/1042239010(1) ANNEXURE-L AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY THE COURT MADE THE FOLLOWING: O R D E R The petitioner is an individual assessee. He has filed returns for the assessment year 2016-17 declaring total income of Rs.13,43,580/-. His case was taken up for re-assessment. Notice was issued to him electronically by respondent No.1 on 28.03.2022, for which the petitioner has replied. The petitioner had sold an immovable property in Mysore for a consideration of Rs.30,00,000/- received in the year 2012. He had paid Stamp duty at Rs.2,75,635/-. He had submitted the said details to respondent No.1. However, erroneously respondent has taken it as Rs.2,75,63,500/- as the unexplained money under section 69A of the Income Tax Act ('the Act' for short). It is further contended that other contentions raised by petitioner in his objection 3 has also not been considered by respondent No.1. On the said grounds, the impugned assessment order at Annexure-L and consequent action has been challenged. 2. The advocate appearing for the respondents justifying assessment order prays for dismissal of the writ petition. 3. However, it is seen from the impugned assessment order that respondent No.1 has failed to consider the contentions raised by the petitioner in reply to show-cause notice wherein he has specifically stated that the property was sold for a consideration of Rs.30,00,000/- and that Rs.2,75,635/- was paid for registration charges and has taken the unexplained money as Rs.2,75,63,500/- under Section 69A of the Act, and passed the impugned order. Prima-facie, the petitioner has been able to demonstrate the contention raised by him has not been considered, which ought to have been considered by respondent No.1 while passing the impugned order. For the said reason the impugned order is liable to be set aside and the matter requires to be remitted back to the respondent No.1 for fresh 4 consideration in accordance with law. Hence, the following: ORDER The impugned assessment order dated 31.03.2022 bearing No.ITBA/AST/S/147/2021- 22/1042239010(1) vide Annexure-L to the writ petition passed by respondent No.1 is hereby set aside. Consequently, all action pursuant to issuance of impugned order at Annexure-L is hereby set aside. The matter is remitted back to respondent No.1 for fresh consideration in accordance with law. It is hereby made clear that no opinion has been expressed in respect of merits of the case. All contentions are left open and respondent No.1 shall take appropriate decision without being influenced by any of the observations made herein above. The writ petition is disposed of accordingly. Sd/- JUDGE BH "