Kamlesh Kumari V. Union Of India And 3 Others

WTAX/301/2023

AI Insights

The case revolves around the reassessment proceedings initiated against Kamlesh Kumari, a petty farmer, by the revenue authorities under the Income Tax Act, 1961, for the Assessment Year 2015-16. The proceedings were based on an erroneous assumption that the petitioner had sold a valuable property worth Rs. 77,85,000, which was unfounded as she had only purchased a small parcel of land. The reassessment was contested on the grounds that it was initiated without proper factual basis and continued despite the realization of the mistake by the authorities. The court, after hearing the arguments and considering the admissions of the revenue authorities, decided to quash the reassessment proceedings, providing relief to the petitioner under Article 226 of the Constitution of India.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 693405 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 29-03-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A S G I; GAURAV MAHAJAN; SUDARSHAN SINGH
• Assessee Lawyers: ABHINAV MEHROTRA; SATENDRA KUMAR; SATYA MEHROTRA; UTKARSH MALVIYA
• Keywords: Assessment Year 2015-16; Income Tax; Quashing; Reassessment proceedings; Faceless assessing authority
• Section: 148A(d)

Judgement Text

"Chief Justice's Court Case :- WRIT TAX No. - 301 of 2023 Petitioner :- Kamlesh Kumari Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Abhinav Mehrotra,Satendra Kumar,Satya Vrata Mehrotra,Utkarsh Malviya Counsel for Respondent :- A.S.G.I.,Gaurav Mahajan,Sudarshan Singh Hon'ble Pritinker Diwaker,Chief Justice Hon'ble Saumitra Dayal Singh,J. 1. Heard Sri Abhinav Mehrotra, learned counsel for the petitioner, Sri Krishna Agarwal, learned counsel for the revenue and Sri Sudarshan Singh, learned counsel for the Union of India. 2. Present petition has been filed seeking quashing of the reassessment proceedings initiated against the petitioner under Section 148A(d) of the Income Tax Act, 1961 vide notice dated 30.03.2022 for the Assessment Year 2015-16. 3. Primarily, it has been submitted, the petitioner is a petty farmer. During the assessment year in question, she had not engaged in any commercial transaction of sale of land. She had only made purchase of small parcel of land valued at Rs. 12,240/-. This fact is verified by the revenue authorities, inasmuch as during the course of the reassessment proceedings, upon objection raised by the petitioner, the sale deed in question has been examined. It is undisputed that the satisfaction of the Assessing Authority to initiate the reassessment proceedings arose solely on the basis of that sale deed only. There is no other deed or information to base the satisfaction of the Assessing Authority to initiate reassessment proceedings against the petitioner. 4. The revenue authorities have initiated reassessment proceedings against the petitioner on a wrong assumption of fact that the petitioner had sold certain valuable immovable property worth Rs. 77,85,000/-. That being an unfounded fact assumption, no satisfaction may have ever arisen with the Assessing Authority to initiate reassessment proceedings against the petitioner for Assessment Year 2015-16. 5. Then, despite realisation of their mistake, the authorities are reluctant to offer correction, inasmuch as instead of dropping the reassessment proceedings, they have chosen to conclude those proceedings on merits. Thus, grave apprehension has been expressed by the petitioner, a petty farmer, that she would be unnecessarily drawn into cumbersome, time taking and expensive legal proceedings. 6. Upon such pleadings, by a last order we required, learned counsel for the revenue to obtain clear instructions as to correct facts. 7. Today, Sri Krishna Agarwal has very fairly stated that the reassessment proceedings are being conducted by the faceless assessing authority. Therefore, no communication is possible to be made with that authority at this stage of the proceedings. However, the jurisdictional assessing authority has apprised the learned counsel for the revenue that there is a mistake in initiation of reassessment proceedings against the petitioner for the assessment year in question. To that end, jurisdictional assessing authority has already written to the faceless assessing authority informing that authority about the correct facts. 8. At the same time, further instructions have been received by the learned counsel for the revenue from the office of the Principal Commissioner stating that remedy may become available to the petitioner upon exercise of revisional jurisdiction in the event any adverse re-assessment order arises. 9. Having heard the learned counsel for the parties and perused the record, this much is clear that the revenue authorities fairly understand their fault. They do realize that no satisfaction may have been formed as to escapement of any income at the hands of the petitioner for the assessment year 2015-16 in absence of jurisdictional fact. 10. The revenue authorities having realized that mistake, we do not see any purpose to allow the present petitioner to suffer the full course of reassessment proceedings, any further. She is found entitled to discretionary relief under Article 226 of the Constitution of India. Notwithstanding other facts stated by the revenue, the petition is allowed. 11. The reassessment proceedings initiated against the petitioner for Assessment Year 2015-16 under Income Tax Act, 1961 are quashed. Order Date :- 29.3.2023 SA (S.D. Singh, J.) (Pritinker Diwaker, CJ) Digitally signed by :- SALMAN ALI High Court of Judicature at Allahabad "