SMT. A . SARASWATHI V. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

WP/15179/2023

AI Insights

The case involves a writ petition filed by Smt. A. Saraswathi against the Income Tax Department officials challenging the notices and orders issued for tax assessments. The petitioner contested the validity of these notices and orders, arguing that they were issued without proper jurisdiction and beyond the statutory time limits. The respondents argued that the petition was filed at a belated stage and that the assessment had already been passed. However, the court focused on the procedural infirmities in the issuance of the initial notice, which was found to be beyond the three-year limit without the required sanction under Section 151(ii) of the Income Tax Act.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 757966 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-07-2023
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 151 (ii) of the Act, Section 148A of the Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Order; Competency; Income Tax; Jurisdictional Error; Notice; Writ petition
• Section: 151; 148A; 226

Judgement Text

" - 1 - NC: 2023:KHC:26222 WP No. 15179 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF JULY, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 15179 OF 2023 (T-IT) BETWEEN: 1. SMT. A . SARASWATHI WIFE OF MR. K. NARAYANASWAMY, AGED ABOUT 55 YEARS, RESIDING AT NO. 197, SAMETHANAHALLY VILLAGE HOSKOTE TALUK, BANGALORE - 560 067. … PETITIONER (BY SRI. SYED KHAMRUDDIN., ADVOCATE) AND: 1. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX KARNATAKA AND GOA REGION GROUND FLOOR, CR BUILDING, NO.1, QUEENS ROAD, BENGALURU - 560 001 2. PRINCIPAL COMMISSIONER OF INCOME TAX-2. BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA, BENGALURU - 560 095. 3. INCOME TAX OFFICER WARD 4(2) (1), BANGALORE, Digitally signed by VIJAYA P Location: High Court of Karnataka - 2 - NC: 2023:KHC:26222 WP No. 15179 of 2023 INCOME TAX DEPARTMENT, BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU - 560 095. 4. ASSESSMENT UNIT INCOME TAX DEPARTMENT, BMTC BUILDING, 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU - 560 095. … RESPONDENTS (BY SRI. SUSHAL TIWARI., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE DTD 19/4/2021 BEARING DIN NO.ITBA/AST/S/148/2021-22/1032518465(1) ISSUED BY THE R-3 (ANNEXURE-A) AND DOCUMENT DTD 26.5.2022 BEARING DIN NO.ITBA/COM/F/17/2022-23 /1043173901(1) ISSUED BY THE R-3 (ANNEXURE-A1) AND ETC. THIS W.P. COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Learned Counsel Sri Sushal Tiwari appearing on behalf of the respondent would submit that the matter is proceeded and assessment order being passed and the present writ petition has been filed at a belated stage and nothing prevented the petitioner from approaching this - 3 - NC: 2023:KHC:26222 WP No. 15179 of 2023 Hon'ble court at an earlier point of time if there was any jurisdictional error. 2. Learned counsel has also submitted that there was no challenge on the ground that is now raised as regards re-opening of the proceedings and accordingly contentions are being advanced at a belated stage after the assessment order is passed and that the matter is at the stage of issuing notice regarding penalty order. 3. However, any objection which goes to the root of the matter relating to the infirmity in the initial notice which is the premise on which proceedings are sought to be re-opened could be entertained even at a later stage. It is noticed that as notice is issued beyond three years from the end of the assessment year, the sanction however is not obtained of the authority under Section 151 (ii) of the Act. As such, objection relates to the competency for issuing of notice under Section 148A can be entertained even though at a later stage, and accordingly such contention stands rejected. - 4 - NC: 2023:KHC:26222 WP No. 15179 of 2023 4. Accordingly, the petition is allowed. The notice dated 19.04.2021 at Annexure-A, order dated 25.07.2022 at Annexure-B, notice dated 25.07.2022 at Annexure-C and order dated 26.05.2023 at Annexure-F are set aside. Liberty is reserved to the respondents to initiate fresh proceedings as is permissible in law as regards to the subject matter of the present proceedings. All contentions are kept open. Sd/- JUDGE NP "