SATISH LALLAN MISHRA V. INCOME TAX OFFICER, WARD 5(3)(1)

SCA/5856/2022

AI Insights

The case involves Satish Lallan Mishra, the petitioner, who challenged a notice issued by the Income Tax Officer under section 148 of the Income Tax Act, 1961, concerning the Assessment Year 2014-2015. The notice alleged that income chargeable to tax had escaped assessment. The petitioner filed objections to the notice, which were not considered by the respondent. The court had previously granted an ad-interim relief staying the implementation of the notice. The core issue was the non-consideration of the petitioner's objections by the tax authorities, which the court directed to be addressed.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 764929 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 01-08-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT; KARAN SANGHANI
• Assessee Lawyers: TUSHAR HEMANI; VAIBHAVI PARIKH
• Keywords: Escaped assessment; Income Tax; Notice; Objections; Reassessment
• Section: 147; 148

Judgement Text

"C/SCA/5856/2022 ORDER DATED: 01/08/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 5856 of 2022 ========================================================== SATISH LALLAN MISHRA Versus INCOME TAX OFFICER, WARD 5(3)(1) ========================================================== Appearance: MR. TUSHAR HEMANI, SR. ADV. WITH MS VAIBHAVI K PARIKH(3238) for the Petitioner(s) No. 1 MR. M.R.BHATT, SR. ADV. WITH MR. KARAN SANGHANI FOR M R BHATT & CO.(5953) for the Respondent(s) No. 1 NOTICE SERVED for the Respondent(s) No. 2 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 01/08/2022 ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned senior advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh for the petitioner and learned senior advocate Mr. M. R. Bhatt for M. R. Bhatt & Co. for the respondents – Income Tax authorities. 2. By filling this petition under Article 226 of the Constitution, what is prayed by the petitioner is to set aside notice dated 30.3.2021 issued by the Income Tax officer under section 148 of the Income Tax Act, 1961 in respect of Assessment Year 2014-2015 stating that for the reasons to Page 1 of 4 C/SCA/5856/2022 ORDER DATED: 01/08/2022 believe, the income chargeable to tax for the assessment year under consideration had escaped assessment within the meaning of section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 3. In response to the aforesaid notice, the petitioner filed Return of income on 15.4.2021. The petitioner further requested for supply of the reasons for reopening. On 20.12.2021, the respondents supplied copy of the reasons for reopening. 3.1 The reasons supplied show that the reopening of the assessment is adverted to by the Income Tax officer on the ground that certain alleged payment and source of such payment was required to be verified. It was stated that information received from the DCIT Central Circle - 2(1), Ahmedabad was in connection with the search carried out in case of M/s. Dev group -the third party and it was found that the petitioner advanced cash for the purchase of flat in the scheme floated by the said Dev group. The source of fund and payment to the tune of Rs. 3 lakhs needed to be verified, it was stated. 3.2 It appears that the petitioner raised objections by his letter dated 20.1.2022 wherein various factual and legal submissions were advanced against the proposed reassessment notice. It was submitted to the Page 2 of 4 C/SCA/5856/2022 ORDER DATED: 01/08/2022 authorities that in view of the grounds stated, the reopening for the year under consideration was not justified. 3.3 This court issued notice on 24.3.2022 and granted ad-interim relief in terms of prayer 7(b) whereby implementation of the impugned notice and further proceedings in respect of the Assessment Year 2014-2015 pursuant to the said notice, were stayed. 4. It is the grievance of the petitioner that the objections raised vide application dated 20.1.2022 have not been considered at all by the respondent. It is the apprehension of the petitioner that without considering the case of the respondent and its defence, the authorities will proceed to frame the assessment pursuant to the impugned notice. It was submitted that great prejudice would occur if the objections of the petitioner are not considered and disposed of in accordance with law by the assessing authority. 5. In the facts of the case, when the objections of the petitioner are not considered and are not disposed of, which were given in response to the notice dated 30.3.2021 under section 148 of the Act in respect of Assessment Year 2014-2015, it would subserve the interests of justice that the competent authority of the respondent considers and disposes off Page 3 of 4 C/SCA/5856/2022 ORDER DATED: 01/08/2022 the objections submitted by the petitioner. 6. Accordingly, this petition is disposed of by directing the respondent No.1 to consider and dispose of the objections of the petitioner dated 20.1.2021 within six weeks from the date of receipt of this order. 6.1 It is clarified that this court has not expressed any opinion on merits nor has gone into the merits of the case. 7. The petition stands disposed in the above terms. Direct service is permitted. (N.V.ANJARIA, J) (BHARGAV D. KARIA, J) C.M. JOSHI/pps Page 4 of 4 "