M/S. Kanti Kaushik Huf V. Income Tax Officer, Ward-2(1)(1) Ghaziabad and Another

WTAX/725/2022

AI Insights

The case involves M/S. Kanti Kaushik Huf, the petitioner, challenging the validity of notices and orders issued by the Income Tax Officer, Ward-2(1)(1), Ghaziabad, under sections 148 and 148A of the Income Tax Act, 1961. The petitioner contested the notices and subsequent orders which alleged unexplained credits amounting to Rs.10,32,97,235 during the Financial Year 2017-18 relevant to the Assessment Year 2018-19. The petitioner argued that the respondent did not consider the submitted documents and replies, thus rendering the hearing an empty formality. The court found merit in the petitioner's arguments, leading to the quashing of the impugned order and remitting the matter back for a fresh decision.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 795259 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 26-05-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV MAHAJAN
• Assessee Lawyers: ANJANA SINGH
• Keywords: Assessment year 2018-19; Certiorari; Certiorari; Income Tax; Opportunity of Hearing; Unexplained credits
• Section: 148; 148A(b); 148A(d); 148A

Judgement Text

"Court No. - 3 Case :- WRIT TAX No. - 725 of 2022 Petitioner :- M/S. Kanti Kaushik Huf Respondent :- Income Tax Officer, Ward-2(1)(1) Ghaziabad And Another Counsel for Petitioner :- Anjana Singh Counsel for Respondent :- Gaurav Mahajan Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. Heard Sri K.C. Kaushik along with Anjana Singh, learned counsel for the petitioner and Sri Gaurav Mahajan, learned senior standing counsel for the respondent- Income Tax Department. This writ petition has been filed praying for the following relief:- \"A. issue a writ of Certiorari or a 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 Petitioner's case and, after examining the legality and validity of the impugned DIN & Notice No. dated ITBA/AST/S/14_1/2021-22/1042206225(1) dated 31.03.2022 for A.Y.- 2018-19 issued by the Respondent No.1 (Assessing officer) under section 148 of the Income Tax Act, 1961 (ANNEXURE No.12) and the impugned order No.ITBA/AST/F/ 148A/ 2021-22 /1042197605(1) dated 31.03.2022 for A.Y.-2018-19 passed by the Respondent No.1 (Assessing Officer) under clause (d) of the Section 148A of the Income Tax Act, 1961 for A.Y.- 2018-19 (ANNEXURE No.13), quash and set aside the same; and/or, B. quashing the proceedings initiated vide impugned notice dated 31.03.2022 issued U/s. 148 of the I.T. Act; and/or; C. quashing prior approval of the PCIT, Ghaziabad (Respondent No.2) accorded on 31.03.2022 vide Reference No.100000028882384; and/or; D. Issue any other writ order or direction which this Hon'ble Court may deem fit and proper in the circumstances of the case; and/ or;\" As per notice dated 22.03.2022 under Section 148A(b) of the Income Tax Act, 1961, the Department has an information from JDIT (OSD) (Inv.) Unit-II, Ghaziabad through insight portal that the petitioner assessee has unexplained credits to the tune of Rs.10,32,97,235/- during the Financial Year 2017-18 relevant to the Assessment Year 2018-19. The petitioner submitted reply to the aforesaid notice and along with the reply, he filed several documents including purchase and sale for the Financial Year 2016-17 and 2017-18. However, the respondent No.1 without considering the reply and even without noticing that details of purchase and sales have been filed by the petitioner, passed the impugned order dated 31.03.2022 under Section 148A(d) of the Act, 1961 for the Assessment Year 2018-19. The manner in which the respondent No.1 has passed the impugned order shows that the opportunity of hearing under Section 148A of the Act, 1961 mandatorily to be provided as per legislative mandate, has been rendered as an empty formality. Therefore, the impugned order dated 31.03.2022 under Section 148A(d) of the Act, 1961 for the Assessment Year 2018-19 cannot be sustained and is hereby quashed. Matter is remitted back to the respondent No.1 to pass an order afresh in accordance with law considering the reply of the petitioner and after affording reasonable opportunity of hearing to him. The writ petition is allowed to the extent indicated above. Order Date :- 26.5.2022 NLY Digitally signed by NAND LAL YADAV Date: 2022.05.27 13:15:39 IST Reason: Location: High Court of Judicature at Allahabad "