Smt. Sakaleshpura Krishnamurthy Geetha V. Assessment Unit, Income Tax Unit and The Income Tax Officer Ward 5(2)(1) and The Principal Commissioner of Income Tax-3 Bengaluru

WP/18202/2024

AI Insights

The case involves Smt. Sakaleshpura Krishnamurthy Geetha, the petitioner, challenging the Assessment Order and related notices issued by the Income Tax Department for the Assessment Year 2018-19. The petitioner argued that the notice under Section 148A(b) was issued with an insufficient response time, contrary to the statutory requirement, which prejudiced her ability to participate effectively in the proceedings. The court found that the short notice period violated the statutory mandate, leading to the setting aside of the Assessment Order and related notices.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 799644 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 10-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: THIRUMALESH
• Assessee Lawyers: ANNAMALAI
• Keywords: Assessment Order; Best Judgment Assessment; Income Tax; Notice of demand; Violation of Statutory Mandate
• Section: 147; 148; 144; 144B; 148A(b); 148A(d); 272A(1)(d); 226; 227

Judgement Text

" - 1 - NC: 2024:KHC:26574 WP No. 18202 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 18202 OF 2024 (T-IT) BETWEEN: 1. SMT. SAKALESHPURA KRISHNAMURTHY GEETHA, W/O SRI A CHANDRASHEKAR AGED ABOUT 66 YEARS PRESENTLY RESIDING AT NO.582D, 6TH CROSS, VINAYAKA LAYOUT, NAGARBHAVI 2ND STAGE BANGALORE-560 072 PAN: BKTPG8638L (SENIOR CITIZENSHIP NOT CLAIMED) … PETITIONER (BY SRI. ANNAMALAI S., ADVOCATE) AND: 1. ASSESSMENT UNIT, INCOME TAX UNIT REP. BY ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX / INCOME TAX OFFICER INCOME TAX DEPARTMENT MINISTRY OF FINANCE ROOM NO.401, 2ND FLOOR E RAMP, JAWAHARLAL NEHRU STADIUM DELHI-110 003 2. THE INCOME TAX OFFICER WARD 5(2)(1) Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:26574 WP No. 18202 of 2024 BMTC BUILDING 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA BANGALORE-560 095 3. THE PRINCIPAL COMMISSIONER OF INCOME TAX-3 BENGALURU BMTC BUILDING 80 FEET ROAD 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA BANGALORE-560 095 … RESPONDENTS (BY SRI. THIRUMALESH., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ASSESSMENT ORDER PASSED UNDER SECTION 147 RWS 144 RWS 144B OF THE ACT DTD. 29.02.2024 BEARING DIN AND NOTICE NO. ITBA/AST/S/147/2023-24/1061770179(1) ISSUED BY THE R-1 FOR THE ASSESSMENT YEAR 2018-19 HEREIN MARKED AS ANNEXURE-A1 AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The petitioner has called in question the correctness of the Assessment Order passed under Section 147 read with Section 144B of the Income Tax Act, 1961 ('the Act' for short) at Annexure-'A1' dated 29.02.2024 for the Assessment Year 2018-19, notices of demand at Annexures-'A2', 'A3' and 'A4', all dated 29.02.2024, notice - 3 - NC: 2024:KHC:26574 WP No. 18202 of 2024 of demand issued under Section 272A(1)(d) at Annexure-'A5' dated 29.02.2024, notice issued under Section 148A(b) at Annexure-'B1' dated 22.03.2022, notice issued under Section 148A(d) at Annexure-'B2' dated 01.04.2022, notice issued under Section 148 at Annexure-'B3' dated 01.04.2022. 2. It is the case of the petitioner that notice under issued Section 148A(b) at Annexure-'B1' was issued on 22.03.2022 requiring compliance by 25.03.2022. It is submitted that the time limit afforded was contrary to the mandate under Section 148A(b) of the Act. 3. It is stated that in light of the short time made out for reply, as the petitioner was prejudiced, he could not participate in the proceedings effectively which resulted in passing of the Assessment Order passed on the principle of 'best judgment assessment'. 4. It is submitted that the petitioner has a good case on merits and if an opportunity is afforded, the - 4 - NC: 2024:KHC:26574 WP No. 18202 of 2024 petitioner would be in a position to demonstrate that no order under Section 148A(d) is required to be passed. 5. Taking note that the time for response being in violation of statutory mandate under Section 148A(b) of the Act, which requires time of not less than seven days to be afforded and also noticing that the assessment proceedings are concluded without the participation of petitioner, it would serve the ends of justice by setting aside the proceedings, while reserving liberty to the Revenue to take action insofar as the subject matter of notice under Section 148A(b) of the Act as is permissible under law. 6. Accordingly, the Assessment Order at Annexure-'A1' dated 29.02.2024 for the Assessment Year 2018-19, notices of demand at Annexures-'A2', 'A3' and 'A4', all dated 29.02.2024, notice of demand Annexure-'A5' dated 29.02.2024, notice at Annexure-'B1' dated 22.03.2022, notice at Annexure-'B2' dated - 5 - NC: 2024:KHC:26574 WP No. 18202 of 2024 01.04.2022, notice at Annexure-'B3' dated 01.04.2022, are set aside. All contentions are kept open. Accordingly, the petition is disposed off. 7. I.A.No.1/2024 seeking dispensation of production of original or certified copies of Annexures-'A1' to 'A5' and 'B1' to 'B3' is disposed of as not calling for adjudication, as the writ petition itself is disposed off. Sd/- JUDGE VGR "