NARENDRAKUMAR PARASMALJI RANKA V. ADDITIONAL COMMISSIONER OF INCOME

WP/104029/2021

AI Insights

The case involves Narendra Kumar Parasmalji Ranka, the petitioner, who challenged the assessment order and demand notice issued by the Income Tax Department for the Assessment Year 2016-17. The petitioner argued that the material propositions were not properly considered during the reopening of the assessment proceedings under Section 147 of the Income Tax Act, 1961. The respondents, represented by the Additional Commissioner, Chief Commissioner, and Assistant Commissioner of Income Tax, defended the actions taken. The court, after hearing the arguments, decided to quash the assessment order and demand notice, allowing the petitioner to submit additional objections and documents.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 690058 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-09-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M TIRUMALESH
• Assessee Lawyers: K R PRADEEP
• Keywords: Demand notice; Income tax assessment; Reopening of assessment; Writ of Certiorari; Additional Objections
• Section: 147; 148; 142(1); 143(2); 144B; 156; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-D:13375 WP No. 104029 of 2021 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 104029 OF 2021 (T-RES) BETWEEN: NARENDRAKUMAR PARASMALJI RANKA, RAVI AUTOMOBILES, G-1, EUREKA TOWER, TRAFFIC ISLAND HUBBALLI-580 029, PAN: ABAPN0790M. TEL: [phone], EMAIL: [e-mail] …PETITIONER (BY SRI. K.R.PRADEEP., ADVOCATE) AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX, NAFAC, C-BLOCK, 4TH FLOOR, S.P.M. CIVIC CENTRE, NEW DELHI-110 001. [e-mail] 011-23221459 9013853810 2. CHIEF COMMISSIONER OF INCOME TAX, REFAC, BNG C.R. BUILDING, NO.1, QUEEN’S ROAD, BENGALURU-560 001. [e-mail] 080-22864478 8985970017 3. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1.1 AND 3(1), Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:13375 WP No. 104029 of 2021 CENTRAL REVENUE BUILDING, NAVANAGAR, HUBBALLI-580 025. [e-mail] …RESPONDENTS (BY SRI. M.TIRUMALESH., ADVOCATE FOR R1-R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.K.R.Pradeep., counsel for the petitioner and Sri.M.Thirumalesh., counsel for the respondents have appeared in person. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the order dated 25.09.2021 passed under Section 147 R/w Section 144B of the Income Tax Act, 1961 in DIN No.ITBA/AST/S/147/2021-22/1035896207(1) for the Assessment Year 2016-17 vide Annexure-A and the Demand Notice dated 25.09.2021 issued under Section 156 of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/S/156/2021-22/1035896216(1) for the Assessment Year 2016-17 vide Annexure-B. - 3 - NC: 2024:KHC-D:13375 WP No. 104029 of 2021 3. The petitioner is an Income Tax Assessee and his returns were assessed by way of regular assessment mainly in respect of income from the Proprietary and Partnership business. The first assessment order was passed on 21.12.2018. A notice under Section 148 of the Act was issued on 23.08.2019. A notice under Section 143(2) R/w Section 147 of the Act was issued on 28.10.2020. Subsequently, on 01.03.2021, a notice under Section 142(1) of the Act was issued along with the reasons recorded for re-opening of assessment. On 16.08.2021, one more notice was issued under Section 142(1) of the Act. On 24.08.2021, a reminder was issued to the petitioner. The petitioner gave a reply/ objection on 31.08.2021. The department disposed of the objections on 02.09.2021 and passed the Assessment order on 25.09.2021. 4. Counsel Sri.K.R.Pradeep., in presenting his arguments, submits that in reopening the assessment proceedings under Section 147 of the Income Tax Act, the material propositions have not been considered properly. He argued by saying that the petitioner may be allowed to submit additional objections and furnish additional documents to support his case. Hence, he submits that the matter may be - 4 - NC: 2024:KHC-D:13375 WP No. 104029 of 2021 remanded and the Assessment Order vide Annexure-A may be quashed. Counsel Sri.M.Thirumalesh., urged several contentions. He justified the action of the department. He strongly objected to a remand. He submits that the Writ Petition is devoid of merits and the same may be dismissed. Heard the arguments and perused the Writ papers with care. 5. On facts and in all the circumstances of the case, this Court considers it proper to allow the petitioner to file additional objections and furnish additional documents. Hence, the matter requires a remand. The Assessment order and the demand notice are liable to be set aside and so, they are aside. 6. The Writ of Certiorari is ordered. The order dated 25.09.2021 passed under Section 147 R/w Section 144B of the Income Tax Act, 1961 in DIN No. ITBA/AST/S/147/2021- 22/1035896207(1) for the Assessment Year 2016-17 vide Annexure-A and the Demand Notice dated 25.09.2021 issued under Section 156 of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/S/156/2021-22/1035896216(1) for the - 5 - NC: 2024:KHC-D:13375 WP No. 104029 of 2021 Assessment Year 2016-17 vide Annexure-B are quashed. Consequently, the demand notice dated 31.03.2022 and the order dated 01.04.2022 are also quashed. The matter is remanded to the respondents to enable the petitioners to file additional objections and furnish additional documents. Upon filing additional objections and furnishing additional documents, the respondents shall go ahead with the matter as per the law. The petitioner is also at liberty to seek electronically uploaded reasons for re-opening the assessment. 7. Resultantly, the Writ Petition is allowed and remanded. This Court has not expressed any opinion on the merits of the case. Sd/- (JYOTI MULIMANI) JUDGE TKN LIST NO.: 2 SL NO.: 17 "