Nama Gopalakrishnaiah Saibaba alias N G Sainath V. Assessment Unit Rep by Income Tax Department National Faceless Assessment Center and The Income Tax Officer Ward - I Chickaballapura

WP/18875/2023

AI Insights

The case involves two writ petitions filed by Nama Gopalakrishnaiah Saibaba alias N G Sainath against the Income Tax Department, challenging the orders and notices issued for the assessment years 2018-19 and 2019-20 under Sections 148A(d) and 148 of the Income Tax Act, respectively. The petitioner argued that he had filed his income tax returns regularly under a specific PAN, despite having another PAN that was surrendered. The court found that the income declared and the returns filed under the active PAN were not considered in the initial adjudication, leading to the quashing of the orders and notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 688308 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1996
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: R CHANDRASHEKAR
• Keywords: Assessment Year; Faceless assessment; Income Tax; Notice; Quashing
• Section: 147; 148; 144; 144B; 148A(d)

Judgement Text

" - 1 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 18875 OF 2023 (T-IT) C/W WRIT PETITION NO. 18899 OF 2023 (T-IT) IN WP NO. 18875/2023 BETWEEN: NAMA GOPALAKRISHNAIAH SAIBABA ALIAS N G SAINATH S/O SRI NAMA GOPALAKRISHNAIAH, AGED ABOUT 58 YEARS, PROPP SRI ANNAPOORNA JEWELLERS M G ROAD, CHINTHAMANI - 563125 …PETITIONER (BY SRI. R. CHANDRASHEKAR, ADVOCATE FOR SRI. RAMA MURTHY R.,ADVOCATE) AND: 1. ASSESSMENT UNIT REP BY INCOME TAX DEPARTMENT NATIONAL FACELESS ASSESSMENT CENTER DELHI - 110001. 2. THE INCOME TAX OFFICER WARD - I CHICKABALLAPURA – 562101. …RESPONDENTS (BY SRI.DILIP.,ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER MADE U/S 148A(D) OF THE ACT DATED Digitally signed by ANAND N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 30/03/2022 MADE FOR THE ASSESSMENT YEAR 2018- 19 (ANNEXURE-E) PASSED BY THE R2 DIN NO. ITBA / AST/F/148A/2021-22/1042040846(1); B) QUASHING THE NOTICE ISSUED U/S 148 OF THE ACT DATED 30/03/2022 FOR THE ASSESSMENT YEAR 2018-19 (ANNEXURE-F) ISSUED BY THE R2 DIN NO. ITBA/ AST/3/1481/2021-22/104202086108(1). IN WP NO. 18899/2023 BETWEEN: NAMA GOPALAKRISHNAIAH SAIBABA ALIAS N.G.SAINATH, S/O SRI NAMA GOPALAKRISHNAIAH, AGED ABOUT 58 YEARS, PROP. SRI ANNAPOORNA JEWELLERS, M.G.ROAD, CHINTAMANI - 563 125. …PETITIONER (BY SRI. R. CHANDRASHEKAR, ADVOCATE FOR SRI. RAMA MURTHY R.,ADVOCATE) AND: THE INCOME TAX OFFICER WARD -1, CHICKBALLAPURA - 562101. …RESPONDENT (BY SRI.DILIP.,ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO-QUASH THE ORDER MADE U/S 148A(d) OF THE ACT DATED 23.03.2023 MADE FOR THE ASSESSMENT YEAR 2019- 2020 ANNEXURE-E IN DIN. ITBA/AST/F/148A/2022- 23/1051161292(1) MADE BY THE RESPONDENT; QUASH THE NOTICE ISSUED U/S 148 OF THE ACT DATED 23.03.2023 FOR THE ASSESSMENT YEAR 2019- 2020 ANNEXURE-F IN DIN ITBA/AST/S/148-1/2022- 23/1051163617(1) ISSUED BY THE RESPONDENT. - 3 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner in these proceedings has impugned the orders under Section 148A(d) of the Income Tax Act, 1996 [for short, ‘the IT Act’] and consequential proceedings. These orders relate to the Assessment years 2018-19 and 2019-20. The details of the impugned orders/notice and the corresponding writ petitions are as follows: Case No. Proceedings number Date of the impugned orders Assessment Orders ORDER IN NO. ITBA/AST/S/148A/2021- 22/1042040846 (1) UNDER SECTION 148A(d) OF THE IT ACT. 30.03.2023 2018-19 NOTICE IN NO. ITBA /AST/S/148- 1/2021-22/1042086108(1) UNDER SECTION 148 OF THE IT ACT 30.03.2022 W.P.No.18875/ 2023 THE ORDER IN NO. ITBA/ AST/S/147/2022-23/1050213120(1) UNDER SECTION 147 R/W SECTION 144 R/W. SECTION 144B OF THE IT ACT. 28.02.2023 ORDER IN NO. ITBA/AST/F/148A/2022- 23/1051161292(1) UNDER SECTION 148A(d) OF THE IT ACT 23.03.2023 2019-20 W.P.No.18899/ 2023 NOTICE IN NO. ITBA/AST/S/14-1/2022- 23/1051163617(1) UNDER SECTION 148 OF THE IT ACT. 23.03.2023 - 4 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 2. These proceedings are commenced asserting that as per the information given by CBDT the petitioner has carried out certain transactions but without filing ITR. The petitioner, upon receipt of notices under Section 148A(b) of the IT Act, has filed response stating that at the relevant time, because of certain circumstances, he was allotted PAN numbers in Nos.ASUPS9582R and AKMPS6368R; that his Aadhaar Card is attached to PAN card in No.AKMPS6368R and the other PAN number is surrendered; that the ITRs have been filed regularly with PAN No.AKMPS6368R even for the subject assessment years. 3. However, the respondent has passed the impugned orders under Section 148A(d) of the IT Act opining that the petitioner has not explained the cash deposits for the relevant years. The petitioner in these petitions, in reiteration of the contents of the reply filed upon receipt of notice under Section - 5 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 148A(b) of the IT Act, contends that he has filed ITR declaring income from his business in the name and style “Sri Annapoorna Jwellers’ only in PAN No.AKMPS6368R and that he has surrendered the other PAN number but only by inadvertence his bank account with M/s. Kotak Mahindra Bank, Chintamani is tagged to the surrendered PAN number. 4. Upon hearing, Sri R. Chandrashekar, the learned counsel for the petitioner, and Sri M. Dilip, the learned counsel for the respondents, the petitioner was permitted to file an affidavit, and presently such affidavit is filed detailing inter alia the returns filed using the PAN No.AKMP6368R. The learned counsels for the parties are heard in the light of this contention. If indeed the petitioner has declared the income from his jewelry business in the name and style “Sri Annapoorna Jwellers’ and has filed ITR using one PAN while surrendering the other - 6 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 PAN, and if such ITR is processed, this Court is of the view that the respondents must revisit adjudication order under Section 148A[d] as it could be seen from the adjudication orders under Section 148A(d) that these aspects have not been considered. Hence, the following: ORDER Both the petitions in W.P.No.18875/2023 and W.P.No.18899/2023 are allowed in part and the following orders/ notices are quashed. Details of the quashed Orders/ Notices Dated ORDER IN NO. ITBA/AST/S/148A/2021- 22/1042040846 (1) UNDER SECTION 148A(d) OF THE IT ACT. 30.03.2023 NOTICE IN NO. ITBA /AST/S/148- 1/2021-22/1042086108(1) UNDER SECTION 148 OF THE IT ACT 30.03.2022 ORDER IN NO. ITBA/ AST/S/147/2022-23/1050213120(1) UNDER SECTION 147 R/W SECTION 144 R/W. SECTION 144B OF THE IT ACT. 28.02.2023 ORDER IN NO. ITBA/AST/F/148A/2022- 23/1051161292(1) UNDER SECTION 23.03.2023 - 7 - NC: 2023:KHC:39007 WP No. 18875 of 2023 C/W WP No. 18899 of 2023 148A(d) OF THE IT ACT 2019-20 NOTICE IN NO. ITBA/AST/S/14- 1/2022-23/1051163617(1) UNDER SECTION 148 OF THE IT ACT. 23.03.2023 The adjudication Section 148A(d) for the assessment years 2018-19 and 2019-29020 are restored for reconsideration with liberty to the petitioners to justify the statements made in the present petitions. Sd/- JUDGE SA ct:sr "