Mrs. Chandra Devi Kothari V. Income Tax Officer Ward 9(3)

WP/39372/2014

AI Insights

The case involves Mrs. Chandra Devi Kothari, the petitioner, who filed a writ petition against the Income Tax Officer, Ward 9(3), challenging the reassessment order and notice of demand issued for the Assessment Year 2009-10. The petitioner had initially filed her income tax return, which was accepted without any issues. However, a notice under Section 148 of the Income Tax Act was issued for reopening the assessment, to which the petitioner responded by requesting the acceptance of her earlier return. The respondent then issued a questionnaire under Section 142(1), but did not provide reasons for the reassessment, which the petitioner contested. The court, after hearing both parties, directed the petitioner to approach the Appellate Authority for redressal, emphasizing that the reasons for reassessment could be addressed post-filing of the return as per the notice under Section 148.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 794093 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 11-12-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: VINAY
• Keywords: Assessment Order; Income Tax; Notice of demand; Re-assessment; Writ petition
• Section: 147; 148; 143(3); 142(1); 143(1)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA, BANGALORE DATED THIS THE 11TH DAY OF DECEMBER, 2014 BEFORE THE HON'BLE MR. JUSTICE HULUVADI G. RAMESH WRIT PETITION NO.39372 OF 2014 (T-IT) BETWEEN: MRS.CHANDRA DEVI KOTHARI W/O.DEVICHAND KOTHARI AGED ABOUT 42 YEARS RESIDING AT NO.1 OMKAR VIHAR SHARDHANAND BHAWAN ROAD V.V.PURAM BANGALORE – 560 004. ... PETITIONER (BY SRI.VINAY.V, ADV.,) AND: INCOME TAX OFFICER WARD 9(3), 3RD FLOOR JEEVAN SAMPIGE, LIC BUILDING SAMPIGE ROAD, MALLESHWARAM BANGALORE – 560 003. ... RESPONDENT (BY SRI K.V.ARAVIND, ADV.,) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER PASSED BY THE RESPONDENT U/S.143(3) R.W.SECTION 147 OF THE INCOME TAX ACT, 1961, DATED 30-06-2014 FOR THE ASSESSMENT YEAR 2009-10 I.E., ANNEXEXURE-D AND CONSEQUENTIAL NOTICE OF DEMAND ISSUED BY THE 2 RESPONDENT, DATED 30-06-2014 FOR THE ASSESSMENT YEAR 2009-10 I.E., ANNEXURE-E. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Sri K.V.Aravind, learned counsel is directed to take notice for the respondent. The petitioner has sought to quash the impugned assessment order passed by the respondent under Section 143 (3) read with Section 147 of the Income Tax Act, 1961, (hereinafter referred to as the ‘Act’) for the Assessment Year 2009-10 at Annexure-D and consequential notice of demand issued by the respondent in Form-7 dated 30.6.2014 for the Assessment Year 2009-10 at Annexure-E and for such other relief. 2. The learned counsel for the petitioner submits that he has filed return of income for the Assessment Year 2009-10 on 22.5.2007 declaring an income of Rs.1,67,430/- and the said return was accepted under Section 143(1) of the Act. Subsequently, the respondent 3 issued a notice under Section 148 of the Act on 30.6.2014 for re-opening of the assessment by requesting the petitioner to file return of income for the said year. In response to the said notice, the petitioner requested the respondent to treat the earlier return filed as return filed in response to the notice issued under Section 148 of the Act. Subsequently, the respondent commenced the proceeding by issuance of questionnaire under Section 142(1) of the Act. 3. The learned counsel for the petitioner submits that the respondent has failed to assign reason for re- opening the assessment which is a condition precedent for such re-opening and also the respondent has not intimated the same to the petitioner even though the petitioner has participated in the re-assessment proceedings. Hence, the petitioner is before this Court. 4. Heard the learned counsel appearing for the respective parties. 5. The grievance of the petitioner is that already income tax return is filed for the Assessment Year 2009- 4 10 which is well within time and the same has been accepted by the respondent-Authority and without assigning any reason, the notice has been issued on 30.6.2014 for re-opening the assessment. According to the counsel, such a reason is necessary for re-opening the assessment. 6. The learned counsel appearing for the respondent-Authority submitted that once the petitioner has filed the income tax return for the Assessment Year 2009-10 and now he is seeking for reason for re-filing the same. It is further submitted that only when doing re-filing, reasons could be assigned, but not earlier. As per Annexure-D there is an assessment order passed, since the petitioner did not file another return as sought for by the respondent-Authority under Section 148 of the Act. It is submitted by the learned counsel for the respondent-Authority that the reassessment made by the Revenue could be challenged before the Appellate Authority. Hence, it is too premature for the petitioner to approach this Court. 5 7. The reasons to be assigned for the purpose of re-filing which is sought by the petitioner herein, could be considered after filing of the return once again as per the notice issued under Section 148 of the Act. Therefore, it is for the petitioner to approach the Appellate Authority within two months as per the proviso under Sec.146(a) of the Act. With the above direction, the petition is disposed of. Sri K.V.Aravind, learned counsel to file memo of appearance within four weeks. Sd/- JUDGE PB "