QUEST GLOBAL ENGINEERING SERVICES PRIVATE LIMITED V. ASSISTANT COMMISSIONER OF INCOME TAX

WP/102094/2022

AI Insights

The case involves Quest Global Engineering Services Private Limited, which filed a writ petition against the Assistant Commissioner of Income Tax and the Principal Commissioner of Income Tax, Hubballi. The petition sought to challenge the order and notice issued for the Assessment Year 2018-19 under Sections 148A(d) and 148 of the Income Tax Act, 1961. The petitioner argued that these were issued while the regular assessment was still ongoing, thus violating the procedural norms under the Income Tax Act. The court, after hearing the arguments and reviewing the relevant documents, agreed with the petitioner and quashed the impugned order and notice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 763557 (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 THIRUMALESH
• Assessee Lawyers: K R PRADEEP; GIRIJA
• Keywords: Assessment year 2018-19; Income Tax; Quash order; Writ of Certiorari
• Section: 148; 143(3); 143(2); 148A(d); 40(a)(i); 144C(1); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-D:13374 WP No. 102094 of 2022 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. 102094 OF 2022 (T-IT) BETWEEN: QUEST GLOBAL ENGINEERING SERVICES PRIVATE LIMITED, NO.437/A, PLOT NO.2, AEQUS SPECIAL ECONOMIC ZONE, HATTARAGI VILLAGE, HUKKERI TALUKA, BELAGAVI, KARNATAKA-591 245, REPRESENTED BY ITS DIRECTOR, MR. RAMAN SUBRAMANIAN, AGE: 59 YEARS. …PETITIONER (BY SRI. K.R.PRADEEP AND MS. GIRIJA.G.P., ADVOCATES) AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, BELAGAVI, FEROZ KHIMJIBHAI COMPLEX, OPP. CIVIL HOSPITAL, DR. AMBEDKAR ROAD, BELAGAVI-590 001. 2. PRINCIPAL COMMISSIONER OF INCOME TAX, HUBBALLI, C.R. BUILDING, NAVANAGAR, HUBBALLI-580 025. …RESPONDENTS (BY SRI.M.THIRUMALESH., ADVOCATE FOR R1-R2) Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:13374 WP No. 102094 of 2022 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 through video conferencing. 2. The captioned Writ Petition is filed seeking a Writ of Certiorari to quash the order dated 31.03.2022 passed by the first respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/F/148A/2021- 22/1042401411(1) for the Assessment Year 2018-19 vide Annexure-B and the notice dated 31.03.2022 issued under Section 148 of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/S/148_1/2021-22/1042401760(1) for the Assessment Year 2018-19 vide Annexure-A. 3. Heard the arguments and perused the Writ papers with utmost care. - 3 - NC: 2024:KHC-D:13374 WP No. 102094 of 2022 4. On 30.11.2018, the petitioner filed an original return of income declaring a total income of Rs.26,79,19,590/- (Rupees Twenty-Six Crore Seventy-Nine Lakh Nineteen Thousand Five Hundred and Ninety only) for the Assessment Year 2018-19. The case of the petitioner was selected for scrutiny and a notice under Section 143(2) of the Income Tax Act, 1961 was issued by the Income Tax Department. On 30.09.2021, a draft order was passed by the first respondent under Section 143(3) R/w Section 144C(1) of the Act determining the assessed income at Rs.116,37,79,303/- for the Assessment Year 2018-19. On 19.03.2022, a notice was issued under Section 148A(b) of the Act for the Assessment Year 2018-19 proposing to make disallowance under Section 40(a)(i) of the Act seeking compliance before 25.03.2022. A Corrigendum to Notice under Section 148A(b) of the Act was issued altering the compliance date to 26.03.2022. The petitioner replied to the notice. Suffice it to note that the department issued 148A(b) notice to Quest Global Engineering Services Private Limited on 19.03.2022 and an order under Clause (d) of Section 148A of the Act was passed on 31.03.2022. Subsequently, a notice - 4 - NC: 2024:KHC-D:13374 WP No. 102094 of 2022 under Section 148 of the Act was also issued on 31.03.2022. It is pivotal to note that as of the date of issuance of (b) notice and (d) order, the regular assessment was in progress and had not reached finality. Hence, issuance of (b) notice, passing of (d) order and notice under Section 148 of the Act are bad in law. Therefore, they are liable to be set aside, so they are set aside. 5. The Writ of Certiorari is ordered. The order dated 31.03.2022 passed by the first respondent under Section 148A(d) of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/F/148A/2021-22/1042401411(1) for the Assessment Year 2018-19 vide Annexure-B and the notice dated 31.03.2022 issued under Section 148 of the Income Tax Act, 1961 in DIN & Notice No.ITBA/AST/S/148_1/2021- 22/1042401760(1) for the Assessment Year 2018-19 vide Annexure-A are quashed. 6. Resultantly, the Writ Petition is allowed. Sd/- (JYOTI MULIMANI) JUDGE TKN LIST NO.: 2 SL NO.: 21 "