Lingarajan Raja V. National Faceless Assessment Centre

WP(MD)/10843/2022

AI Insights

The case involves Lingarajan Raja, the petitioner, who is engaged in the business of buying and selling properties under his proprietorship and as a partner in a partnership firm. The Income Tax Department issued notices under section 148 of the Income Tax Act, 1961, reopening the assessment for the assessment year 2017-2018 based on these transactions. The petitioner contested that the assessments were incorrectly made under his individual capacity, despite some transactions being under his proprietorship and others under the partnership firm. The court, after hearing the arguments, decided to quash the notice and remand the case for further consideration, providing the petitioner an opportunity to fully respond to the notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798275 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 22-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: J PAREKHKUMAR
• Assessee Lawyers: S SRIRAMAN
• Keywords: Assessment Reopening; Income Tax; Notice; Property transactions; Writ of Certiorari
• Section: 148; 142(1)

Judgement Text

"W.P.(MD)No.10843 of 2022 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 22.09.2023 CORAM THE HONOURABLE MRS.JUSTICE S.SRIMATHY W.P.(MD)No. 10843 of 2022 and W.M.P(MD)Nos.7803 & 7806 of 2023 Lingarajan Raja ... Petitioner Vs. National Faceless Assessment Centre, Represented by Additional/Joint/Deputy/ Assistant Commissioner of Income Tax Room No.401, 2nd Floor, E-Ramp, Jawajarlal Nehru Stadium, Delhi-110003. ... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, to call for the impugned Notice, dated 30.03.2021 issued under section 148 of the Income Tax Act, 1961 in PAN:AIPPL8374N having DIN and Notice No.ITBA/AST/S/148/2020-21/1031914462(1)/e-filing portal for Asst. Year 2017-2018 issued by the respondent and the consequential proceedings. dated 22.3.2022 in ITBA/AST/S/147/2021-22/1041233845(1) issued by the respondent and quash the same as illegal. 1/6 https://www.mhc.tn.gov.in/judis W.P.(MD)No.10843 of 2022 For Petitioner : M/s. S.Sridhar A.S.Sriraman For Respondent : Mr. J.Parekh Kumar ORDER This writ petition is filed to quash the impugned Notice, dated 30.03.2021 issued under section 148 of the Income Tax Act, 2. Heard M/s. S.Sridhar, A.S.Sriraman, the Learned counsel appearing for the petitioner, Mr. J.Parekh Kumar, the Learned counsel appearing for the Respondent and perused the material documents available on record. 3. The contention of the petitioner is that the respondents have reopened the assessment based on the transactions of selling properties. The petitioner is engaged in business of buying and selling of properties under Proprietorship namely VRL Land Promoters. He is also a partner in Partnership Firm namely M/s.Gokul Land Promoters having separate PAN number. Admittedly the respondents had issued notice under section 142(1) on 2/6 https://www.mhc.tn.gov.in/judis W.P.(MD)No.10843 of 2022 22.11.2021, 09.12.2021, 05.01.2022, 06.02.2022, 03.03.2022 and the petitioner had given partial response to notice dated 06.02.2022 and for other notices the petitioner has not given any response. The further contention of the petitioner is that certain transactions were carried as Proprietor and certain transaction under partnership firm, but the respondents have assessed under individual, hence he prayed to grant one more opportunity to submit full response to the notices. 4. In view of the above, this Court is of the considered opinion that the petitioner needs one more opportunity to substantiate the case. Hence, the impugned notice, dated 30.03.2021 is hereby quashed. The matter is remitted back to the concerned authorities for reconsideration. The petitioner shall submit full response to the notices dated 22.11.2021, 09.12.2021, 05.01.2022, 06.02.2022, 03.03.2022 within a period of three weeks from the date of receipt of the copy of the order. If the petitioner seeks personal hearing and the respondents shall grant as per law. Thereafter the respondents shall consider the case and pass orders within a period of Three months therefrom. 3/6 https://www.mhc.tn.gov.in/judis W.P.(MD)No.10843 of 2022 5. With the above directions and observations, this Writ Petition is allowed. No Costs. Consequently, connected miscellaneous petitions are closed. Index : Yes / No 22.09.2023 Internet : Yes ksa 4/6 https://www.mhc.tn.gov.in/judis W.P.(MD)No.10843 of 2022 To National Faceless Assessment Centre, Represented by Additional/Joint/Deputy/ Assistant Commissioner of Income Tax Room No.401, 2nd Floor, E-Ramp, Jawajarlal Nehru Stadium, Delhi-110003. 5/6 https://www.mhc.tn.gov.in/judis W.P.(MD)No.10843 of 2022 S.SRIMATHY. J ksa Order made in W.P.(MD)No. 10843 of 2022 22.09.2023 6/6 https://www.mhc.tn.gov.in/judis "