RANKA PARK JAIN SANGH TRUST V. THE INCOME TAX OFFICER (EXEMPTIONS)

WP/713/2023

AI Insights

The case involves the Ranka Park Jain Sangh Trust, represented by its treasurer, challenging notices and an order issued by the Income Tax Department concerning the assessment year 2015-16. The petitioner contested a notice under Section 148A[b] and an order under Section 148A[d] of the Income Tax Act, 1961, which were based on alleged unfiled income returns and a significant cash deposit. The respondents argued that the details provided were sufficient, but offered to supply additional information to resolve the dispute. The court's decision emphasized the need for a proper hearing and adequate information before proceeding with the assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 753785 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 19-01-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: ANNAMALAI
• Keywords: Assessment Year 2015-16; Income Tax; Notice Quash; Opportunity of Hearing; Writ petition
• Section: 148; 148A(b); 148A(d); 226; 227

Judgement Text

"- 1 - WP No. 713 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JANUARY, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 713 OF 2023 (T-IT) BETWEEN: RANKA PARK JAIN SANGH TRUST REP. BY ITS TREASURER, SRI. SAMPATHRAJ G. MEHTA, S/O LATE SRI. GHUISULAL MEHTA, AGED ABOUT 71 YEARS, NO.4, 5 AND 6, LALBAGH ROAD, BANGALORE-560 027. …PETITIONER (BY SRI. ANNAMALAI S.,ADVOCATE) AND: 1. THE INCOME TAX OFFICER (EXEMPTIONS) WARD (2), BANGALORE, UNITY BUILDING ANNEXE, MISSION ROAD, BANGALORE-560 002. 2. THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (EXEMPTIONS), DELHI, 2503, E-2 BLOCK, PRATYAKSH KAR BHAWAN, CIVIC CENTRE, JLN MARG, MINTO ROAD, NEW DELHI-110 002. …RESPONDENTS (BY SRI.K.V. ARAVIND., ADVOCATE) Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - WP No. 713 of 2023 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE ISSUED UNDER SECTION 148(A)(B) OF THE ACT DATED 18.3.2022 OF ACT FOR THE ASSESSMENT YEAR 2015-16 BY THE R1 BEARING DIN AND NOTICE NO. ITBA/AST/F/148A (SCN)/ 2021-22/ 1041008910 (1) HEREIN MARKED AS ANNEXURE A1. QUASH THE ORDER DATED 29.03.2022 PASSED UNDER SECTION 148(A)(D) OF THE ACT FOR THE ASSESSMENT YEAR 2015-16 BY THE R1 BEARING DIN AND NOTICE NO. ITBA/AST/F/148A/2021- 22/1041901554(1) HEREIN MARKED AS ANNEXURE A2. QUASH THE NOTICE DATED 29.03.2022 ISSUED UNDER SECTION 148 OF THE ACT FOR THE ASSESSMENT YEAR 2015-16 BY THE R1 BEARING DIN AND NOTICE NO. ITBA/AST/S/148-1/2021- 22/1041903422(1) HEREIN MARKED AS ANNEXURE A3. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has called in question the notice dated 18.03.2022 [Annexure-A1] under Section 148A[b] of the Income Tax Act, 1961 [for short, ‘the IT Act’] and the subsequent order dated 29.03.2022 [Annexure-A2] under Section 148A[d] of the IT Act. These impugned notice and order pertain to the assessment years 2015-16. The petitioner has also - 3 - WP No. 713 of 2023 impugned the notice dated 29.03.2022 [Annexure-A3] under Section 148A of the IT Act. 2. Sri. S Annamalai, the learned counsel for the petitioner, submits that the notice under Section 148A[b] of the IT Act must fail because the information as per Annexure-A1 appended to this notice cannot be construed as information defined under explanation [1] to Section 148 of the IT Act. The information as appended to this notice reads as under: “A Cash deposit of Rs. 95.00/- lakhs during the financial Year 2014-15 relevant Assessment Year of 2015-16 and trust has not filed the Return of Income for the Assessment Year 2015- 16.” 3. Sri. K V Aravind, the learned counsel for the respondents, submits that the contention that the afore information lacks material details is hyper - 4 - WP No. 713 of 2023 technical and not sustainable in view of the details in the subsequent order under Section 148A[d] of the IT Act, but to ensure that there is no precipitation on this score, Sri. K V Aravind submits that additional information would be given to the petitioner and this Court may enable adjudication on such information after due opportunity to the petitioner to file a response. 4. This Court must accept this submission in view of the undeniable position that any information which is part of the order under Section 148A[d] of the IT Act cannot be read into the contents of notice under Section 148A[b] of the IT Act for obvious reasons. In the scheme that is now introduced by the current regime, there must be an opportunity of hearing based on the information which would be the reason for commencement of the proceedings under Section 148 of the IT Act before adjudication. Hence the following: - 5 - WP No. 713 of 2023 ORDER The petition is allowed, and the impugned notice dated 18.03.2022 [Annexure-A1] and the subsequent order dated 29.03.2022 [Annexure-A2] under Section 148A[d] of the IT Act and the next notice dated 29.03.2022 [Annexure-A3] are quashed with liberty to the respondents to furnish additional information for compliance with the requirements in law and to extend an opportunity of hearing as contemplated under Section 148A[b] of the IT Act before adjudication under Section 148A[d] thereof. Sd/- JUDGE AN/- "