SMT. SUMITHRA V. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX

WP/15054/2023

AI Insights

The case involves Smt. Sumithra, the petitioner, who challenged the notices and orders issued by the Income Tax Department under Sections 148 and 148A of the Income Tax Act, 1961, for the assessment year 2016-17. The petitioner argued that the notices were issued without the requisite sanction from the Principal Chief Commissioner, as mandated by Section 151 of the Income Tax Act, since the notices were issued after the lapse of three years from the end of the relevant assessment year. The respondents included various officials from the Income Tax Department. The court's decision focused on the procedural requirement of obtaining the appropriate sanction for issuing such notices after the specified period.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 689816 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUSHAL TIWARI
• Assessee Lawyers: SYED KHAMRUDDIN
• Keywords: Assessment Year; Income Tax; Notice; Principal Chief Commissioner; Sanction
• Section: 148; 151; 148A; 226; 227

Judgement Text

" - 1 - NC: 2023:KHC:26217 WP No. 15054 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. 15054 OF 2023 (T-IT) BETWEEN: 1. SMT. SUMITHRA WIFE OF MR. K. SRINIVAS AGED ABOUT 43 YEARS, RESIDING AT NO.181, SAMETHANAHALLI VILLAGE SAMETHANAHALLI POST HOSKOTE TALUK BANGALORE RURAL DISTRICT - 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. Digitally signed by VIJAYA P Location: High Court of Karnataka - 2 - NC: 2023:KHC:26217 WP No. 15054 of 2023 3. INCOME TAX OFFICER WARD 4(2) (3), BANGALORE, 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 ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE DTD 19/4/2021 BEARING DIN NO.ITBA/AST/S/148/2021-22/1032518473 (1) ISSUED BY THE R-3 (ANNEXURE-A) AND DOCUMENT DTD 30.5.2022 BEARING DIN NO.ITBA/COM/F/17/2022-23/1043255623 (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 The petitioner has assailed the notice dated 19.04.2021 at Annexure-'A' issued under Section 148 of the Income Tax Act, as also the order dated 20.07.2022 passed under Section 148A (d) of the Income Tax Act as - 3 - NC: 2023:KHC:26217 WP No. 15054 of 2023 well as the notice at Annexure-C stated to be intimation letter under Section 148 of the Income Tax Act, 1961. 2. It is the case of the petitioner that in terms of the mandate under Section 151 sanction for issue of notice under Section 148A shall be in terms of Section 151 (i) (ii) and if the notice is issued after the lapse of three years from the end of the relevant assessment year, sanction must be obtained of the Principal Chief Commissioner and in the present case, sanction admittedly has been obtained from the Principal Commissioner and accordingly, if the initial notice is bad in law, order under Section 148A (d) is liable to be set aside. 3. A perusal of the order under Section 148A (d) would reveal that approval of the Principal Commissioner of Income Tax has been obtained. However, perusal of Section 151 (ii) would require that Principal Chief Commissioner must accord sanction in the event the notice is issued after a lapse of more than three years from the end of the relevant assessment year. - 4 - NC: 2023:KHC:26217 WP No. 15054 of 2023 4. In the present case, the assessment year is 2016-17 and notice is issued in 2022, which is beyond the period of 03 years and accordingly in terms of Section 151 (2) sanction of the Principal Chief Commissioner which ought to be obtained. On this sole ground itself the entirety of proceedings are liable to be set aside as is noticed under Section 148A (b) it should be preceded by sanction of the appropriate officer under Section 151 (2). 5. Accordingly, the petition is allowed. The notice at Annexure-A1, order at Annexure-B and notice at Annexure-C 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 "