Nalupurappattil Ahemmad V. Income Tax Officer, Ward Int Tax, Kozhikode and Principal Commissioner of Income Tax, Mananchira, Kozhikode, Kerala and Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block, New Delhi

WP(C)/44172/2023

AI Insights

The case involves Nalupurappattil Ahemmad, the petitioner, who challenged the notices and orders issued by the Income Tax Department under Sections 148 and 148A(d) of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner did not file his income tax return for the specified year, and subsequent investigations revealed unexplained income from the sale of three properties amounting to Rs.99,24,500. The petitioner contested the jurisdiction of the International Taxation Ward and the validity of the assessment, claiming that his share in the properties and his residential status did not fall under the purview of the International Taxation Ward. The court dismissed the writ petition, allowing the assessment proceedings to continue.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 676672 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 14-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR; G KEERTHIVAS
• Assessee Lawyers: T K VIPINDAS
• Keywords: Assessment Year 2016-17; Income Tax; Jurisdiction; Unexplained income
• Section: 147; 148; 148A(d)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 14TH DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945 WP(C) NO. 44172 OF 2023 PETITIONER: NALUPURAPPATTIL AHEMMAD, AGED 62 YEARS S/O.MOHAMMAD KUNHI E, AL-VAZEELA MANZIL, KADINHIMOOLA, THAIKADAPPURAM.P.O, NILESHWAR., PIN - 671314 BY ADV T.K.VIPINDAS RESPONDENTS: 1 INCOME TAX OFFICER, WARD INT TAX, KOZHIKODE, PIN - 673001 2 PRINCIPAL COMMISSIONER OF INCOME TAX, MANANCHIRA, KOZHIKODE, KERALA, PIN - 673001 3 CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110002, REPRESENTED BY ITS CHAIRPERSON. BY ADVS. P.G.JAYASHANKAR G.KEERTHIVAS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.44172 of 2023 2 JUDGMENT Dated this the 14th day of February, 2024 The present writ petition has been filed impugning Ext.P3 notice and Ext.P4 order issued and passed under Section 148 of the Income Tax Act, 1961, and passed under Section 148A(d) of the the Income Tax Act, 1961. 2. The petitioner did not file his return of income for the assessment year 2016-17. The specific information was disseminated through the Insight Portal in accordance with the Risk Management Strategy formulated by the CBDT. As per the opinion of the assessing officer, the information available against the petitioner would disclose that income chargeable to tax has escaped assessment within the meaning of Section 147 of the Income Tax Act. After notice, the petitioner had filed the reply and order under Section 148A(d) came to be passed, which would show that the petitioner had received Rs.99,24,500 as sale consideration of three immovable properties, and the income generated from the said receipt remain unexplained. As the petitioner did not file return of his WPC No.44172 of 2023 3 income, the assessing authority in its order under Section 148A(d) was of the opinion that the assessee did not have any proper and valid explanation/submission on the said issue and therefore, the entire consideration of Rs.99,24,500/- would fall within the limit of unexplained income which had escaped assessment. Thereafter, notice under Section 148 has been issued and the petitioner has also submitted reply to the said notice. In reply to the notice issued under Section 148 dated 27.04.2023, the petitioner had requested for transfer of file to the assessing officer having jurisdiction, as according to the petitioner, the petitioner is resident Indian and the International Taxation Ward would not have the jurisdiction in respect of the petitioner. 3. Learned counsel for the petitioner submits that the petitioner was having a share of 50% only and therefore, the petitioner’s income would become less than Rs.50,00,000/- and therefore, the order impugned becomes ultravirus. He further submits that the petitioner being resident Indian, the International Ward cannot have jurisdiction to proceed with the matter. WPC No.44172 of 2023 4 4. As per the details mentioned in the impugned order, the total income which escaped assessment is more than 99 lakhs. Whether the petitioner has 50% share or the petitioner has generated the entire income for himself is the question to be determined in the assessment proceedings. At the stage of finalization of the order under Section 148A(d), detailed enquiry regarding the income of the petitioner cannot be considered. The limited purpose of an order under Section 148A(d) is to have satisfaction by the assessing authority whether to proceed or not to proceed with reopening assessment of the petitioner, in case the income has escaped assessment in the relevant assessment year. In the present case, as per the impugned order more than 99 lakhs of income generated by the petitioner by sale of three properties had escaped assessment, and therefore, there is no jurisdictional error as contended by the learned counsel for the petitioner. 5. If the International Taxation Ward does not have jurisdiction, it will transfer the matter to the relevant assessing officer for further proceedings. Therefore, I do not find that, this writ petition requires any interference by WPC No.44172 of 2023 5 this Court as there is neither any jurisdictional error nor error of law aparent on the face of record. Thus, the present writ petition is dismissed. It is open to the petitioner to raise all the contentions before the assessing authority while the assessment order is finalized. The petitioner has already filed return in pursuance to the notice under Section 148. Before the finalization of the assessment order, the petitioner shall be heard and then the assessment order will be finalized by the jurisdictional assessing officer. Sd/- DINESH KUMAR SINGH JUDGE AP WPC No.44172 of 2023 6 APPENDIX OF WP(C) 44172/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE UNDER CLAUSE(B) OF SECTION 148 A OF THE INCOME TAX ACT 1961, ISSUED BY THE 1ST RESPONDENT DATED 24-03- 2023 Exhibit P2 TRUE COPY OF THE REPLY SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 10-04- 2023 Exhibit P3 TRUE COPY OF THE NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT 1961 ISSUED BY THE 1ST RESPONDENT DATED 27-4-2023 Exhibit P4 THE TRUE COPY OF THE ORDER UNDER CLAUSE (D) OF SECTION 148A OF THE INCOME TAX ACT 1961 DATED 27-4-2023 ISSUED BY 1ST RESPONDENT Exhibit P5 TRUE COPY OF THE ACKNOWLEDGMENT OF THE INCOME TAX RETURN FILED BY THE PETITIONER IN ASSESSMENT YEAR 2016-2017 Exhibit P6 TRUE COPY OF THE REPRESENTATION DATED 14- 06-2023 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P7 TRUE COPY OF THE NOTICE DATED 10.01.2024 ISSUED BY THE INCOME TAX OFFICER WARD-1 & TPS,KASARGOD EXHIBIT P7 True copy of the letter dated 30-01-2023 EXHIBIT P8 True copy of the Acknowledgement No. 939127921300123 EXHIBIT P9 True copy of the letter dated 09-02-2023 EXHIBIT P10 True copy of the Acknowledgement No. 951909481090223 EXHIBIT P11 True copy of the Acknowledgement No. 114301881120423 "