SHRI MOHAMED ASADULLA V. THE ASSISTANT COMMISSIONER OF INCOME TAX

ITA/558/2016

AI Insights

This case involves an appeal by Shri Mohamed Asadulla against the order of the Income Tax Appellate Tribunal (ITAT), Bengaluru, which was passed on 08.06.2016. The appeal was directed against the findings related to the block assessment year from 01/04/1995 to 26/03/2002. The primary legal contention raised by the appellant was the lack of jurisdiction in the assessment proceedings due to the non-issuance of a mandatory notice under Section 143(2) of the Income Tax Act, 1961, within the prescribed time limit. The High Court of Karnataka, after hearing the arguments, decided to remit the matter back to the ITAT for a fresh examination of this specific issue, while keeping other questions open for potential re-examination depending on the outcome of the additional question.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752748 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-02-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: V CHANDRASHEKAR
• Keywords: Assessment proceedings; Block assessment; Income tax appeal; Jurisdiction; Mandatory Notice
• Section: 143(2); 260-A; 143(2)(ii)

Judgement Text

" - 1 - ITA No. 558 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2023 PRESENT THE HON'BLE MR JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR JUSTICE C.M. POONACHA INCOME TAX APPEAL NO. 558 OF 2016 BETWEEN: 1. SHRI MOHAMED ASADULLA NO.1022, 38TH CROSS 25TH MAIN T BLOCK JAYANAGAR BANGALORE-560041 PAN: ACYPA1554D …APPELLANT (BY SRI V CHANDRASHEKAR, ADVOCATE FOR SRI M LAVA, ADVOCATE) AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX CENTAL CIRCLE -2 (2) C R BUILDINGS, QUEENS ROAD BANGALORE-560 001 …RESPONDENT (BY SRI.E I SANMATHI, STANDING COUNSEL) THIS INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW; ALLOW THE APPEAL AND SET ASIDE THE FINDINGS TO THE EXTENT AGAINST THE APPELLANT IN THE ORDER PASSED BY THE ITAT, BENGALURU, BENCH 'B', BENGALURU IN IT(SS)A NO. 41/BANG/2009 DATED: 08/06/2016 FOR THE BLOCK ASSESSMENT YEAR 01/04/1995 TO 26/03/2002 (VIDE ANNEXURE-A) AND ETC. Digitally signed by NIRMALADEVI Location: HIGH COURT OF KARNATAKA - 2 - ITA No. 558 of 2016 THIS ITA COMING ON FOR HEARING, THIS DAY P.S. DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT This Appeal by the Assessee directed against the order dated 08.06.2016 in IT (SS)A No.41/Bang/2009 passed by the ITAT1, 'B' Bench, Bangalore has been admitted to consider the question of law raised in memorandum of appeal. 2. Heard Shri V. Chandrashekar, learned Advocate for the Appellant and Shri. E.I. Sanmathi, learned Standing Counsel for the Revenue. 3. Shri. Chandrashekar submits that the Assessee has raised the following additional question for consideration: Whether the entire assessment proceedings are without jurisdiction as the mandatory notice under Section 143(2) of the Act was not issued as per law and more so not issued within the prescribed time limit as per the provisions of section 143(2)(ii) of the Act on the facts and circumstances of the case. 1 Income Tax Appellate Tribunal, Bengaluru Bench - 3 - ITA No. 558 of 2016 4. This Court vide order dated 03.01.2023 has ordered that the said question shall be considered along with the questions already admitted for consideration. He submits that the above additional question involves question of limitation and requires to be answered by the Tribunal on facts. Therefore, the entire matter may be remanded to the Income Tax Appellate Tribunal for fresh consideration in accordance with law. 5. Shri. E.I. Sanmathi submits that the remand order may be limited to the above additional question only. In case the assessee succeeds, he will get relief. In the event, assessee does not get any relief in respect of the above question, the other questions may be kept open. 6. In view of the above, following ORDER 1. Appeal is allowed in part. 2. The order dated 08.06.2016 in ITA No.IT (SS)A No.41/Bang/2009 passed by the ITAT is set aside. Matter is remitted to the ITAT for fresh - 4 - ITA No. 558 of 2016 consideration of the above additional question in accordance with law. 3. All other questions raised in this appeal are kept open with liberty to assessee to file the appeal afresh, in case he does not get relief on consideration of the above additional question by the ITAT. No costs. SD/- JUDGE SD/- JUDGE BS List No.: 2 Sl No.: 5 "