FAREEDA SULTHANA V. THE INCOME TAX OFFICER

WP/5647/2023

AI Insights

The case involves a writ petition filed by Fareeda Sulthana against the Income Tax Officer, challenging a notice issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2017-18. The notice alleged that income chargeable to tax had escaped assessment. The petitioner argued that the notice was incompetent as the escapement amount was below Rs. 50,00,000 and it was time-barred. The respondent contended that the writ court typically does not intervene at the stage of a show cause notice. However, the court found merit in the petitioner's arguments, leading to the quashing of the notice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752439 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 09-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: RAJEEV NULVI
• Keywords: Assessment Year; Escaped assessment; Income Tax; Jurisdictional Facts; Limitation Period; Writ petition
• Section: 147; 148; 226; 227

Judgement Text

" - 1 - NC: 2023:KHC:28085 WP No. 5647 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF AUGUST, 2023 BEFORE THE HON'BLE MR JUSTICE KRISHNA S DIXIT WRIT PETITION NO. 5647 OF 2023 (T-IT) BETWEEN: FAREEDA SULTHANA, D/O. B.M. SHAFFIKULLA, AGED ABOUT 36 YEARS, RESIDING AT NO.301, A BLOCK, AMIGO LAKE VIEW APARTMENT, OPP. HAJ HOUSE, AGRAHARA BADAWANE ROAD, THIURMENHALLI, BANGALORE - 560 064. …PETITIONER (BY SRI. RAJEEV CHANNAPPA NULVI, ADVOCATE) AND: THE INCOME TAX OFFICER, WARD 3(2)(1), 1ST FLOOR, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. …RESPONDENT (BY SRI. M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 18.07.2022, VIDE ANNEXURE-A BEARING DIN AND NOTICE NO.ITBA/COM/F/17/2022-23/1043895075(1) ISSUED BY THE Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:28085 WP No. 5647 of 2023 RESPONDENT NO.1 AUTHORITY UNDER SECTION 148 OF THE INCOME TAX ACT, 1961, PERTAINING TO ASSESSMENT YEAR 2017-18, AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner-Assessee is knocking at the doors of Writ Court for assailing the notice dated 18.7.2022 issued by the respondent-Income Tax Officer u/s 148 of the Income Tax Act, 1961 pertaining to the Assessment Year 2017-18 proposing to assess/reassess on the ground that the income chargeable to tax has escaped assessment within the meaning of section 147. Learned counsel for the petitioner argues that the notice is incompetent inasmuch as the taxable amount of escapement is less than Rs.50,00,000/- (Rupees Fifty Lakh), as specified by the Act and secondly, it is time barred. - 3 - NC: 2023:KHC:28085 WP No. 5647 of 2023 2. Learned counsel appearing for the revenue opposed the petition contending that ordinarily, the Writ Court would not grant indulgence in matters of Show Cause Notices and that it is open to the petitioner to show cause against the proposal of the ITO. 3. Having heard the learned counsel for the parties and having perused the Petition Papers, this court is inclined to grant indulgence in the matter inasmuch as apparently, the stated escaped taxable amount is less than Rs.50,00,000/- and that the notice has been issued beyond the period prescribed by law. Ordinarily, Writ Courts do not grant indulgence at the level of Show Cause Notice, is true. However, when such notice is issued without the jurisdictional facts and after the expiry of limitation period, it is always open to the citizen to tap the writ jurisdiction, for its quashment. A constitutional court cannot turn away an injured litigant without granting relief just by quoting some constitutional theories. - 4 - NC: 2023:KHC:28085 WP No. 5647 of 2023 In the above circumstances, this Writ Petition succeeds; a Writ of Certiorari issues quashing the impugned notice. As a consequence, the respondent-ITO is prohibited from proceeding with the matter in question. Costs made easy. Sd/- JUDGE ABK List No.: 1 Sl No.: 9 "