Smt Manjula Mallashetty V. The Chief Commissioner of Income Tax and The Assessing Officer, Ward 4(2)(1)

WP/12290/2024

AI Insights

In this writ petition, Smt Manjula Mallashetty challenged the assessment order passed by the Assessing Officer under Section 147 read with Section 144 of the Income Tax Act, 1961, claiming that she was not served with the necessary notice and that her share in the sale of movable property was incorrectly assessed. The petitioner argued that her actual share was only Rs.6,00,000, contrary to the amount assessed. The court, upon reviewing the sale deed and the circumstances, found sufficient grounds to set aside the initial assessment order and remand the case for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797182 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 12-06-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: SURESH B N
• Keywords: Assessment Order; Income Tax; Notice; Opportunity of being heard; Short Term Capital Gain; Writ petition
• Section: 147; 148; 144; 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:20643 WP No. 12290 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JUNE, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 12290 OF 2024 (T-IT) BETWEEN: 1. SMT MANJULA MALLASHETTY W/O NAGARAJ SETTY, AGED ABOUT 64 YEARS, RESIDING AT NO.398, DHARMA SHREE RAMAGONDANAHALLI BANGALORE - 560 066. … PETITIONER (BY SRI. SURESH BABU B N., ADVOCATE) AND: 1. THE CHIEF COMMISSIONER OF INCOME TAX CENTRAL REVENUE BUILDING, QUEENS ROAD, BENGALURU - 560 001. 2. THE ASSESSING OFFICER, WARD 4(2)(1) INCOME TAX DEPARTMENT, BMTC BUILDING, 80 FT ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU - 560 095. … RESPONDENTS (BY SRI. E.I. SANMATHI., ADVOCATE) Digitally signed by VIJAYA P Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:20643 WP No. 12290 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT QUASHING THE ASSESSMENT ORDER 28.03.2023 PASSED IN DIN AND ORDER NUMBER ITBA/AST/S/147/2022- 23/1051465138(1) FOR THE AY 2018-19 PASSED BY THE R-2 PRODUCED AND MARKED AS ANNEXURE-A AND CONSEQUENTIAL ORDERS DTD 14.09.2023 BEARING NO. DIN ITBA/PNL/F/270A/2023-24/1056076171 (1) PASSED BY THE R- 2 PRODUCED AND MARKED AS ANNEXURE-J AND AN ORDER DTD 06.10.2023 PASSED IN DIN NO. ITBA/PNL/F/272A(1)(d)/2023-24/1056850098(1) PRODUCED AND MARKED AS ANNEXURE-K AND REMAND THE MATTER TO R-2 FOR FRESH ASSESSMENT BY PROVIDING OPPORTUNITY OF BEING HEARD AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Petitioner has challenged the assessment order passed under Section 147 read with Section 144 of the Income Tax Act, 1961 (for short ‘the Act’) at Annexure-A, on the ground that she was not served with notice. 2. It is submitted that the petitioner is not an assessee and the sale consideration on sale of the movable property has been taken note of and an amount of Rs.59,90,248/- is brought to tax under the head ‘short terms capital gain’. However, it is submitted that in terms of the sale deed dated 28.03.2018, the petitioner herein is - 3 - NC: 2024:KHC:20643 WP No. 12290 of 2024 the 5th vendor and her share is only Rs.6,00,000/- as per the cheque dated 16.03.2018 and accordingly, she seeks for affording an opportunity before the Authority to put forth her case. 3. Perused the sale deed, prima facie the contention of the petitioner merits consideration. The order passed taking entirety of the sale consideration makes out a strong ground on merits. In light of such facts as made out, the matter is relegated to the stage of reply to the notice under Section 148 of the Act. 4. Accordingly, the order at Annexure-A is set aside. All contentions are kept open. The petitioner to make out her reply to the notice under Section 148 of the Act within a period of 3 weeks from the date of receipt of certified copy of this order. Petition is disposed off accordingly. Sd/- JUDGE VP "