Hootagally Shivananda Chandrika V. The Assessing Officer Department of Income Tax Ward - 1 and TPS Mandya

WP/14504/2024

AI Insights

The case involves a writ petition filed by Hootagally Shivananda Chandrika against the Assessing Officer of the Income Tax Department, challenging an assessment order that classified an amount of Rs.3,25,61,315 as 'unexplained investment'. The petitioner argued that the amount was incorrectly recorded and sought a chance to clarify and present evidence. The court noted that a subsequent communication from The Mysore & Chamarajanagar District Co-operative Central Bank Ltd. acknowledged the error in the records. Consequently, the court decided to set aside the original assessment order and remand the case for re-evaluation, emphasizing the need for a fair hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808794 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: MAHESH CHANDRAN
• Keywords: Assessment Order; Show cause notice; Time deposits; Unexplained investment
• Section: 69

Judgement Text

" - 1 - NC: 2024:KHC:23398 WP No. 14504 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 14504 OF 2024 (T-IT) BETWEEN: 1. HOOTAGALLY SHIVANNA CHANDRIKA AGED ABOUT 39 YEARS, D/O SHIVANNA S, R/AT NO.218-1 MARIGUDI ROAD HOOTAGALLY, BELAVADI POST, MYSORE TALUK MYSORE - 570 018 … PETITIONER (BY SRI. MAHESHCHANDRA B N., ADVOCATE) AND: 1. THE ASSESSING OFFICER DEPARTMENT OF INCOME TAX WARD - 1 AND TPS MANDYA - 571 401 … RESPONDENT (BY SRI. M. THIRUMALESH., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET ASIDE THE ORDER PASSED BY THE RESPONDENT ON 17.03.2024 PRODUCED AT ANNEXURE-J AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:23398 WP No. 14504 of 2024 ORDER The petitioner has called in question the correctness of the Assessment Order at Annexure-'J' dated 17.03.2024 and has sought for an opportunity to appear and submit documents alongwith an explanation as regards the show cause notice issued. 2. It is the contention of the petitioner that the Department has treated an amount of Rs.3,25,61,315/- as 'unexplained investment' under Section 69 of the Income Tax Act, 1961, while observing that the assessee has failed to furnish either confirmation from The Mysore & Chamarajanagar District Co-operative Central Bank Ltd., in respect of wrong entry or other documentary evidence in support of the contention that the amount was kept in time deposits. 3. Learned counsel for the petitioner submits that insofar as the amount referred to hereinabove, i.e. Rs.3,25,61,315/-, the petitioner had sought for a clarification from The Mysore & Chamarajanagar District - 3 - NC: 2024:KHC:23398 WP No. 14504 of 2024 Co-operative Central Bank Ltd., as the said amount was incorrect amount that was shown in the records. 4. It is further submitted that the Assessment Order came to be passed on 17.03.2024, but on 04.04.2024, as regards the very same amount referred to hereinabove, which was treated as 'unexplained investment', The Mysore & Chamarajanagar District Co-operative Central Bank Ltd., has addressed a communication to the Income Tax Officer, Ward1 & TPS, Mandya pointing out that the amount was incorrect figure and in the records of the customer, the deleted data was shown wrongly. 5. Accordingly, it is submitted that the petitioner being primarily aggrieved by the order of Department treating a sum of Rs.3,25,61,315/- as 'unexplained investment', requires to be set aside and the matter be remanded for fresh consideration, while affording an opportunity of hearing to the petitioner. - 4 - NC: 2024:KHC:23398 WP No. 14504 of 2024 6. Learned counsel appearing for the Revenue submits that sufficient opportunity is granted to the petitioner and within the prescribed time, the petitioner has not produced the clarification, which she now seeks to produce at a belated stage. 7. However, taking note that the Assessment Order treats the amount of Rs.3,25,61,315/- as time deposit without any explanation regarding the source and as regards the very same amount, The Mysore Chamarajanagar Bank has issued a clarification on 04.04.2024 that the amount reflected in the records of the petitioner was deleted data and was an error, it would meet the ends of justice, if the matter is relegated to the respondent Authorities for reconsideration as regards the amount of Rs.3,25,61,315/- shown as unexplained investment. 8. Accordingly, the order at Annexure-'J' dated 17.03.2024 is set aside. The matter is relegated for fresh consideration before the Assessing Officer as regards the - 5 - NC: 2024:KHC:23398 WP No. 14504 of 2024 amount of Rs.3,25,61,315/- shown as unexplained investment. However, it is made clear that the petitioner is to avail of the said opportunity. All contentions are kept open. Accordingly, the petition is disposed off. Sd/- JUDGE VGR "