Irene Kosase Albuquerque V. Income Tax Officer, C.R. Building, N.G. Road, Attawara, Mangaluru, Karnataka and National Faceless Assessment Centre, Income Tax Department, Delhi and Principal Commissioner of Income Tax, Aaykar Bhawan, Plot No.5, EDC Complex, Patto Plaza, Panaji, Goa

WP/12391/2024

AI Insights

The case involves Irene Kosase Albuquerque, the petitioner, challenging several orders and notices issued by the Income Tax Department concerning the assessment year 2019-20. The petitioner contested the validity of these orders and notices, claiming they were based on erroneous assumptions and lacked proper consideration of the materials provided. The main contention was that the income escaping assessment was incorrectly stated as Rs.1,46,50,000, whereas it was actually Rs.29,30,000. The High Court found that the respondents had not adequately considered the petitioner's submissions and materials, leading to a violation of the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 812573 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH; ROOPA
• Assessee Lawyers: BALRAM RAO
• Keywords: Income escaping assessment; Natural Justice; Writ of Certiorari; Writ of Mandamus; Writ of prohibition
• Section: 147; 144B; 148A(d); 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:32947 WP No. 12391 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 12391 OF 2024 (T-IT) BETWEEN: IRENE KOSASE ALBUQUERQUE, AGED ABOUT 58 YEARS, R/A 1-17/243 SILVER CREST, LANDLINKS TOWNSHIP, 3RD CROSS, DEREBAIL, KONCHA MANGALORE - 575 008. KARNATAKA, PAN NO. AKSPA8664J. …PETITIONER (BY SRI. BALRAM R RAO., ADVOCATE) AND: 1. INCOME TAX OFFICER, C.R.BUILDING, N.G.ROAD, ATTAWARA, MANGALURU, KARNATAKA - 575 001. 2. NATIONAL FACELES ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, DELHI, 2ND FLOOR, E-RAMP JAWAHARLAL NEHRU STADIUM, DELHI - 110 003. 3. PRINCIPAL COMMISSIONER OF INCOME TAX, AAYKAR BHAWAN, PLOT NO.5, EDC COMPLEX, PATTO PLAZA, PANAJI - 403 001, GOA. …RESPONDENTS (BY SRI.M.THIRUMALESH AND SMT.ROOPA R.A., ADVOCATES) Digitally signed by Vandana S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:32947 WP No. 12391 of 2024 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO i) CALLING FOR THE RECORDS OF THE PETITIONERS CASE AND AFTER EXAMINING THE LEGALITY AND VALIDITY THEREOF BE PLEASED TO QUASH AND SET ASIDE THE IMPUGNED ORDER UNDER SECTION 148A(d) OF THE ACT DATED 07/03/2023 IN DIN ITBA/AST/F/148A/2022- 23/1050477415(1) (ANNEXURE - D), IMPUGNED ORDER UNDER SECTION 147 R.W.S. 144B OF THE ACT DATED 13/03/2024 IN DIN ITBA/AST/S/147/2023-24/1062517759(1) (ANNEXURE-Z) AND NOTICE OF DEMAND ISSUED U/S 156 OF THE ACT DATED 13/03/2024 IN DIN ITBA/AST/S/156/2023-24/1062518042(1) (ANNEXURE-Z1) FOR THE AY 2019-20 AND 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 In this petition, the petitioner seeks the following reliefs; 43. i. Writ of certiorari or writ in the nature of certiorari or any other appropriate writ order or direction under Article 226 of the Constitution of India; calling for the records of the Petitioners case and after examining the legality and validity thereof be pleased to quash and set aside the Impugned order under Section 148A(d) of the Act dt.: 07.03.2023 in DIN: ITBA/AST/F/148A/2022- 23/1050477415(1) (ANNEXURE D), impugned order under Section 147 r.w.s. 144B of Act dated 13.03.2024 in DIN: - 3 - NC: 2024:KHC:32947 WP No. 12391 of 2024 ITBA/AST/S/147/2023-24/1062517759(1) (Annexure - Z) and Notice of Demand issued u/s. 156 of the Act dated 13.03.2024 in DIN: ITBA/AST/S/156/2023- 24/1062518042(1) (Annexure - Z1) for the AY 2019-20. ii. Writ of Mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of Constitution of India ordering and directing the Respondents by themselves by their subordinates, servants or agents to withdraw and cancel the impugned order under Section 148A(d) of the Act dt.: 07.03.2023 in DIN:ITBA/AST/F/148A/2022-23/1050477415(1) (ANNEXURE D), impugned order under Section 147 r.w.s. 1448 of Act dated 13.03.2024 in DIN: ITBA/AST/S/147/2023-24/1062517759(1) (Annexure Z) and Notice of Demand issued u/s. 156 of the Act dated 13.03.2024 in DIN: ITBA/AST/S/156/2023- 24/1062518042(1) (Annexure - Z1) for the AY 2019- 20 and iii. A writ of Prohibition or a writ in the nature of Prohibition or any other appropriate writ, order or direction under Article 226 of Constitution of India prohibiting and restraining the Respondents by themselves their sub ordinates, servants and agents from taking any action in furtherance or consequent to notice issued u/s. 148A(b) of the Act dt.: 24.01.2023 in ITBA/AST/F/148A(SCN)/2022- 23/1049068325(1) DIN: (ANNEXURE A), impugned order under Section 148A(d) of the Act dt.: 07.03.2023 ITBA/AST/F/148A/2022-23/1050477415(1) in DIN: (ANNEXURE D), notice u/s. 148 of the dt.: 07.03.2023 in DIN: ITBA/AST/S/148_1/2022-23/1050479635(1) - 4 - NC: 2024:KHC:32947 WP No. 12391 of 2024 (ANNEXURE E), impugned order under Section 147 r.w.s. 1448 of Act dated 13.03.2024 in DIN: ITBA/AST/S/147/2023-24/1062517759(1) (Annexure Z) and Notice of Demand Issued u/s. 156 of the Act dated 13.03.2024 in DIN: ITBA/AST/S/156/2023- 24/1062518042(1) (Annexure Z1) for the AY 2019- 20 passed by Respondents. iv. Grant the interim relief in terms of prayer (iii) above, and V. Issue such other order, writ or direction as this Hon'ble Court deems fit\". 2. Heard learned counsel for the petitioner and learned counsel for the respondents. 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner invited my attention to the impugned Show Cause Notice at Annexure-A dated 24.01.2023, in order to contend that in the said Notice, the respondents had erroneously stated that the income escaping assessment for the Assessment Year 2019-2020 (Financial Year 2018-19) was Rs.1,46,50,000/- without there being any material in support of the said allegation. In this context, it is pointed out that despite - 5 - NC: 2024:KHC:32947 WP No. 12391 of 2024 the petitioner submitting reply at Annexure-B1 dated 28.02.2023 specifically stating that the amounts deposited in the account of the petitioner during the Financial Year 2018-19 was only Rs.29,30,000/- on various dates and not Rs.1,46,50,000/- as wrongly contented by the petitioner, the respondents have proceeded to pass the impugned order at Annexure-D dated 07.03.2023 under Section 148A(d) of the Income Tax Act, 1961 on the erroneous premise that the income escaping assessment was in excess of Rs.50 lakhs, thereby, enabling invocation of Section 148A(d) of the Income tax Act, 1961. 4. It is submitted that the impugned order at Annexure-D dated 07.03.2023 passed under Section 148A(d) is illegal, arbitrary and contrary to the material on record and the same deserves to be quashed as also the subsequent notices, adjudication orders, assessment orders, etc., which deserve to be quashed. 5. Per contra, learned counsel for the respondents submits that there is no merit in the petition and the same is liable to be dismissed. - 6 - NC: 2024:KHC:32947 WP No. 12391 of 2024 6. As rightly contended by learned counsel for the petitioner, a perusal of the material on record including the reply at Annexure-B1 dated 28.02.2023 submitted by the petitioner to the notice under Section 148A(b) of the Income Tax Act 1961, will indicate that despite the petitioner specifically stating and producing the material to establish that the amounts deposited by him during the Financial Year 2018- 19 was only Rs.29,30,000/-, the respondents have failed to consider the said reply as well as the material produced by the petitioner and has mechanically/summarily passed the impugned order in violation of the principles of natural justice, warranting interference by this Court in the present petition. 7. In the result, the petition is hereby allowed. The impugned Annexures- D, Z and Z1 dated 07.03.2023, 13.03.2024 and 13.03.2024 respectively, are hereby quashed. Matter is remitted back to the respondents for reconsideration afresh from the stage of issuance of notice under section 148A(b) of the Income Tax Act 1961 dated 24.01.2023 8. Liberty is reserved in favour of the petitioner to submit additional reply, document, etc., to the said notice - 7 - NC: 2024:KHC:32947 WP No. 12391 of 2024 which shall be considered by the respondents, who shall proceed further after providing sufficient and reasonable opportunity to the petitioner and hearing him in accordance with law. Sd/- (S.R.KRISHNA KUMAR) JUDGE PN CT: SN List No.: 1 Sl No.: 13 "