Melagani Chickavenkatappa Neelakante Gowda V. The Income Tax Officer, Ward-1, New Extension, Kolar

WP/16733/2024

AI Insights

The petitioner, Melagani Chickavenkatappa Neelakante Gowda, filed a writ petition challenging notices and orders issued by the Income Tax Officer concerning the assessment year 2016-17. The petitioner contended that he was not an assessee and had no prior knowledge of the notices, which were sent to his Chartered Accountant instead of directly to him. The court found that the order under Section 148A(d) was passed without any explanation from the petitioner and acknowledged the lack of service of notice. Consequently, the court set aside the contested orders and notices, allowing the petitioner an opportunity to respond to the initial notice under Section 148A(b).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796193 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 24-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: R RAMAMURTHY
• Keywords: Assessment Order; Immovable Property; Income Tax; Notice; Permanent Account Number; Source of funds; Writ of Certiorari
• Section: 147; 148; 144; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:29144 WP No. 16733 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 16733 OF 2024 (T-IT) BETWEEN: MELAGANI CHICKAVENKATAPPA NEELAKANTE GOWDA, S/O M.C. HANUMAPPA, AGED ABOUT 63 YEARS, 99, ANJANADRI, MELAGANI, EMMANATHA POST, MULBAGAL - 563 131, KOLAR DISTRICT. …PETITIONER (BY SRI. R. RAMAMURTHY, ADVOCATE) AND: THE INCOME TAX OFFICER, WARD-1, NEW EXTENSION, KOLAR - 563 101. …RESPONDENT (BY SRI. M. DILIP, JR. STANDING COUNSEL) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICES DATED 19.02.2023 AND 08.03.2023 ISSUED U/S. 148A(b) OF THE ACT (ANNEXURE-B AND B-1) [ITBA/AST/F/148A(SCN)/2022-23/1049900514(1) AND ITBA/AST/F/148A(SCN)/2022-23/1050512642(1)] ISSUED FOR THE ASSESSMENT YEAR 2016-17 BY THE RESPONDENT AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by YAMUNA K L Location: High Court of Karnataka - 2 - NC: 2024:KHC:29144 WP No. 16733 of 2024 CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER (PER: HON'BLE MR JUSTICE S SUNIL DUTT YADAV) The petitioner has sought for issuance of writ of certiorari to set aside the notices under Section 148A(b) of the Income Tax Act, 1961 (for short 'the Act') at Annexures-B and B1 as well as to set aside the order under Section 148A(d) of the Act at Annexure-C. The petitioner has assailed the notice under Section 148 of the Act at Annexure-D and the assessment order under Section 147 read with Section 144 of the Act at Annexure-E. 2. It is the case of the petitioner that he was not an assessee and hence had no knowledge of notice that was uploaded on the basis of the petitioner's Permanent Account Number (PAN). It is further submitted that the petitioner had no notice even otherwise, as notice was sent to the address of the Chartered Accountant at Kolar which has not communicated to the petitioner. It is further - 3 - NC: 2024:KHC:29144 WP No. 16733 of 2024 submitted that the petitioner would be in a position to explain and clarify as regards the demand raised, if an opportunity is provided. 3. The order under Section 148A(d) of the Act has been passed observing that the assessee has failed to disclose the nature of purchase of immovable property and the source of funds for such purchase. 4. Learned counsel for the petitioner would submit that the purchase of the immovable property was made by the sale deed, wherein apart from the petitioner there were three other purchasers and such aspect has not been taken note of appropriately. 5. Noticing that the order under Section 148A(d) of the Act has been passed without any explanation on record by the petitioner herein and noticing the petitioner's contention that there were no service of notice to the petitioner as he was not an assessee previously, to meet the ends of justice, it would be appropriate to - 4 - NC: 2024:KHC:29144 WP No. 16733 of 2024 relegate the petitioner to the stage of reply to the notice under Section 148A(b) of the Act. 6. Accordingly, the order at Annexure-'C' is set aside and consequently, notice under Section 148 of the Act at Annexure-'D' and the assessment order at Annexure-'E' are set aside. Matter is relegated to the stage referred to above. All contentions are kept open. Accordingly, petition is disposed off. Sd/- (S SUNIL DUTT YADAV) JUDGE MCR "