Rajeshwari Polisetty V. The Income Tax Officer Ward-1

WP/201034/2024

AI Insights

The case involves Rajeshwari Polisetty, the petitioner, challenging multiple notices and an order issued by the Income Tax Officer, Ward-1, Raichur, under various sections of the Income Tax Act, 1961, concerning the assessment year 2017-18. The petitioner argued that she was not given adequate time to respond to the initial show cause notice under Section 148A(b), which led to the subsequent orders and notices being issued without her adequate response. The respondent contended that the assessment was still open and that the petitioner could submit any documents at any time, which would be considered during the final assessment. The court found that the petitioner was deprived of a reasonable opportunity to present her case, leading to the quashing of the impugned orders and notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 676924 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M THIRUMALESH
• Assessee Lawyers: S PARTHASARATHI; G B YADAV; JINITA CHATERJEE
• Keywords: Assessment Year 2017-18; Income Tax; Quashing of notice; Show cause notice; Writ of Certiorari
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 IN THE HIGH COURT OF KARNATAKA KALABURAGI BENCH DATED THIS THE 2ND DAY OF AUGUST, 2024 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO.201034 OF 2024 (T-IT) BETWEEN: RAJESHWARI POLISETTY AGE ABOUT 58 YEARS, 12-9-160/1, NEW MEDARWADI GUNJ ROAD, RAICHUR-584101. WIFE OF SRI ASHOK BABU POLISETTY. …PETITIONER (BY SRI. S PARTHASARATHI, AND SRI G.B.YADAV, MS. JINITA CHATERJEE ADVOCATES) AND: THE INCOME TAX OFFICER WARD-1, INCOME TAX DEPARTMENT, AAYKAR BHAWAN, OPP. AIYAPPA TEMPLE, UDAYNAGAR, RAICHUR-584101. …RESPONDENT (BY SRI M. THIRUMALESH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE SHOW Digitally signed by BASALINGAPPA SHIVARAJ DHUTTARGAON Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 CAUSE NOTICE ISSUED U/SEC.148A(B) OF THE ACT IN FILE NO.ITBA /AST/F/148A(SCN)/2023-24/1061534617(1), DT. 26.02.2024 BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 (ANNEXURE-A) B) ISSUE A WRIT OF CERTIORARI OR DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE ORDER PASSED U/SEC. 148A(D) OF THE ACT IN FILE NO. ITBA/AST/F/148A/2023-24/1063276138(1), DT. 23.03.2024 BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 (ANNEXURE-C) C) ISSUE A WRIT OF CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF CERTIORARI QUASHING THE NOTICE PASSED U/SEC.148 OF THE ACT IN FILE NO. ITBA/AST/F/148-1/2023-24/1063276673(1) DT. 23.03.2024 BY THE RESPONDENT FOR THE ASSESSMENT YEAR 2017-18 (ANNEXURE-D). THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER (PER: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Sri.Thirumalesh, learned counsel for the respondent submits that he would be filing vakalath for respondent. 2. The petitioner is before this Court seeking for the following reliefs: i. Issue a writ of certiorari or a direction in the nature of writ of certiorari quashing the show cause notice issued under Section 148A(b) of the Act in file No.ITBA/AST/F/148A(SCN)/2023- - 3 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 24/ 1061534617 (1), dt. 26.02.2024 by the respondent for the assessment year 2017-18 (Annexure-A). ii. Issue a writ of certiorari or direction in the nature of writ of certiorari quashing the order passed u/sec. 148a(d) of the Act in file No. ITBA/AST/F/148A/2023-24/ 1063276138(1), dt. 23.03.2024 by the respondent for the assessment year 2017-18 (Annexure-C). iii. Issue a writ of certiorari or a direction in the nature of writ of certiorari quashing the notice passed U/sec.148 of the Act in file No. ITBA/AST/f/148-1/2023-24/ 1063276673(1) dt.23.03.2024 by the respondent for the assessment year 2017-18 (Annexure-D). 3. The grievance of the petitioner is that the petitioner had not been given adequate opportunity to reply to the notice under Clause(b) of Section 148A of Income Tax Act, 1961 (for short, hereinafter referred to as ‘the Act’) issued as per Annexure-A, inasmuch as notice had been issued on 26.02.2024, the petitioner was called upon to reply to the same by 05.03.2024. Hence, the petitioner vide Annexure-B dated 03.03.2024 sought for a fortnight’s time to reply to the same. The said request neither had been accepted nor rejected by the respondent. But the - 4 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 respondent has gone ahead and passed the impugned order at Annexure-C dated 23.03.2024 under Clause(d) of Section 148A of the Act and it is in that background, she submits that a further notice under Section 148 has been issued in terms of Annexure-D. Her submission is that if she had been provided adequate opportunity and had been informed the necessary documents, the same would have been submitted which could have been considered by the respondent. 4. Sri Thirumalesh, learned counsel for the respondent however submits that what has been passed is only under clause(d) of Section 148A of the Act. The assessment being still open and only a notice under Section 148A having been issued, the petitioner could always submit any and all documents that the petitioner wishes to rely upon which would be considered by the respondent at the time of finalizing the assessment. - 5 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 5. Having heard both counsels, I am of the considered opinion that the time which had been prescribed in the notice under clause(b) of Section 148A being less than a week, is not sufficient time which has been granted by the authorities. It is in aspects relating to tax matters where there are large information and documents which are sought for by the income tax authorities the filing having been made much earlier, it is required of the authorities to provide suitable time which is reasonable in the circumstances. 6. The Act, though, prescribes seven days, in the event of any request being made by the assessee for submission of documents, the same would have to be considered favourably and reasonable time required to be granted by way of written communication by the income tax authorities. 7. In the present case, notice having been issued on 26.02.2024 requiring the petitioner to reply by 05.03.2024, the petitioner by a letter dated - 6 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 03.03.2024 had sought for a fortnights’ time. It was therefore required of the respondent to have replied to the said letter either accepting or rejecting the request. If rejecting by giving necessary reasons and if accepting inform the number of days of extension granted to the petitioner. None of them having been done, the respondent-authorities went ahead with passing the order on 23.03.2024 on the ground that time sought for by the petitioner had also expired. 8. In that view of the matter, I am of the considered opinion that petitioner has been deprived of an opportunity to place the documents and say of the petitioner for consideration of the respondent in pursuance of the notice issued under clause (b) of Section 148A of the Act. 9. As such, I pass the following: ORDER i. The writ petition is allowed. - 7 - NC: 2024:KHC-K:5622 WP No. 201034 of 2024 ii. The impugned orders dated 23.03.2024 bearing file No.ITBA/AST/F/148A/2023-24/ 1063276138(1), vide Annexure-C and order dated 23.03.2024 in file No.ITBA/ AST/F/148_1/2023-24/1063276673(1), vide Annexure-D are quashed. iii. The petitioner is granted one week’s time from today to reply to the notice under clause (b) of Section 148A of the Act at Annexure-A. The reply along with documents, if any, shall be submitted on or before 09.08.2024. The said reply and documents would be considered by respondent and necessary orders passed by the respondent in accordance with law. iv. It is made clear that if no reply or documents are furnished by 09.08.2024, the petitioner shall not be entitled for any extension and the above order shall automatically stand revoked. The petitioner shall submit the reply and the documents without awaiting for a copy of this order, since the order is passed in the presence of counsel for the petitioner. Sd/- (SURAJ GOVINDARAJ) JUDGE VNR List No.: 1 Sl No.: 42 CT:RBM "