HALBARGAKAR SURESH V. THE INCOME TAX OFFICER AND ORS

WP/201051/2024

AI Insights

The case involves Halbargakar Suresh H, the petitioner, who contested several notices and orders issued by the Income Tax Department concerning the assessment year 2016-17. The petitioner, associated with an educational trust, argued that the cash deposit in question did not belong to him but to the educational institution he managed. Despite his contention, the Assessing Officer proceeded with the orders, which led to the filing of this writ petition under Articles 226 and 227 of the Constitution of India. The High Court of Karnataka, after hearing the arguments and considering the newly submitted documents, decided to set aside the previous orders and remand the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 671659 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 15-11-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: RAVI S V
• Keywords: Assessment Year 2016-17; Income Tax; Notice Quashing; Penalty notice; Writ of Certiorari
• Section: 147; 148; 144; 271(1)(c); 274; 271(1)(b); 144B; 148A(b); 148A(d)

Judgement Text

" - 1 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 15TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 201051 OF 2024 (T-IT) BETWEEN: HALBARGAKAR SURESH H NO 8-9-270-33/1, SAI DUTTA KRUPA, BEHIND BARID SHAHI GARDEN, GURU NANAK COLONY BIDAR-585401. …PETITIONER (BY SRI. RAVI SHANKAR. S.V., ADVOCATE) AND: 1. THE INCOME TAX OFFICER, WARD-1, BIDAR-585401. 2. NATIONAL FACELESS ASSESSMENT CENTRE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX DEPARTMENT, MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR E-RAMP, JAWAHARAL NEHRU STADIUM, DELHI-110003. 3. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, C R BUILDING, QUEENS ROAD, BENGALURU-560001. Digitally signed by SUMITRA SHERIGAR Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 …RESPONDENTS (SRI. M.THIRUMALESH, ADV. FOR RESPONDENTS) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF A WRIT OF CERTIORARI QUASHING THE NOTICE UNDER SECTION 148A(b) OF THE ACT DATED 11.01.2023 BEARING DIN NO. ITBA/AST/F/148A(SCN) 2022-23/1048621288(1) ISSUED BY THE RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2016-17 HEREIN MARKED AS ANNEXURE-A, ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER (PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR) 1. In this petition, the petitioner seeks the following reliefs: (i) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148A (b) of the Act dated 11.01.2023 bearing DIN No.ITBA/AST/F/148A(SCN)/2022- 23/1048621488(1), issued by the respondent No.1 for the assessment year 2016-2017 herein marked as Annexure-A; (ii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order under Section 148A(d) of the Act dated 28.02.2023 bearing DIN No.ITB A/AST/F/148A/2022-23/1050198879(1) - 3 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 issued b y the respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A1; (iii) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the notice under Section 148 of the Act dated 28.02.2023 bearing DIN No.ITBA/AST/S/148_1/2022-23/1050199044(1) issued by the respondent No.1 for the assessment year 2016-17 herein marked as Annexure-A; (iv) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the order passed under Section 147 r/w S. 144, r.w.s. 144B dated 05.03.2024 bearing ITBA/AST/S/147/2023- 24/1062000726(1) issued by the respondent No.2 for the assessment year 2016-17 herein marked as Annexure-A3; (v) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty notice under Section 274 r.w.s. 271(1)(c) of the Act dated 05.03.2024 bearing DIN No.ITBA/PNL/S/271(1)(c)/2023- 24/1062000998(1) by the respondent No.2 for the assessment year 2016-17 herein marked as Annexure- A4. (vi) Issue a writ of certiorari or direction in the nature of a writ of certiorari quashing the penalty notice dated 05.03.2024 passed under Section 274 r.w.s. 271(1)(b) of the Act bearing DIN and Notice No.ITBA/PNL/F/271(1)(b)/2023-24/1062000997(1) by the respondent No.2 for the assessment year 2016-17 herein marked as Annexure-A5; 2. Heard the learned counsel for the petitioner and the learned counsel for the respondents and perused the material on record. - 4 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, the learned counsel for the petitioner submits that the petitioner is the Principal of the M/s. Shree Mate Manikeshwari PUC of Arts, Science Collage, Bidar, which is run by an educational trust known as Vidyaniketan Educational Trust. By way of response pursuant to the notice dated 11.01.2023 issued by the respondent under section 148A(b) of the Income Tax Act, 1961 (for short, the I.T. Act) the petitioner submitted a reply specifically contending that the cash deposit alleged in the notice did not belong to the petitioner, but the same belonged to the aforesaid Educational Institution run by the aforesaid Educational Trust. Despite the specific contention urged by the petitioner in his reply, the respondent Assessing Officer has proceeded to pass the impugned order under Section 148A(d) of the I.T. Act, followed by consequential notices, orders, etc., all of which are assailed in the present petition. 4. Per contra, learned counsel for the respondents would support the impugned order and submits that there is - 5 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 no merit in the petition and that the same is liable to be dismissed. 5. A perusal of the impugned order at Annexure-A1 dated 28.02.2023 will indicate that the response/reply of the petitioner that the amount in question did not belong to him, but actually belonged to the aforesaid college run by the aforesaid trust was not accepted by the respondent Assessing Officer on the ground that no documentary evidence in this regard had been produced. However, in the present petition, in order to establish that the said Trust and the educational institution were separately assessed and had independent PAN numbers and that the amount actually belonged to the aforesaid Educational Institution run by the aforesaid Trust, the petitioner has filed a memo dated 24.10.2024 producing about seven documents. 6. Under these circumstances, since the said documents were not available with the respondent Assessing Officer at the time of passing the impugned order and in order to provide one more opportunity to the petitioner to submit the said documents, I deem it just and appropriate to - 6 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 set aside the impugned order at Annexure A1 dated 28.02.2023, as well as all consequential notices, orders, etc. at Annexures-A2 to A5 and remit the matter back to the respondent No.1 for reconsideration of fresh in accordance with law. 7. In the result I pass the following: ORDER (i) The writ petition is allowed; (ii) The impugned order at Annexure-A1 and consequential orders at Annexures-A2 to A5 are hereby set aside; (iii) Matter is remitted back to the respondent No.1 for reconsideration afresh in accordance with law; (iv) Liberty is reserved in favor of the petitioner to produce pleadings, documents, etc; (v) Respondent No.1 shall reconsider the matter afresh after providing sufficient and - 7 - NC: 2024:KHC-K:8527 WP No. 201051 of 2024 reasonable opportunity to the parties and pass appropriate orders in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE SVH List No.: 1 Sl No.: 26 "