SRI AJEETH V. ASSESSING OFFICER INCOME TAX OFFICER

WP/11790/2023

AI Insights

The case involves a writ petition filed by Sri. Ajeeth against the assessment orders passed by the Income Tax authorities for the assessment year 2015-16. The petitioner challenged the assessment order dated 17.05.2023 and the preceding order under Section 148A of the IT Act dated 26.07.2022, claiming they were contrary to the law as declared by the Supreme Court in Ashish Agarwal. The petitioner argued that the notice under Section 148 should have been treated as a Section 148A(b) notice, which requires an opportunity for the assessee to file objections before any further action. The court found that the petitioner was not given this opportunity, leading to the setting aside of the order under Section 148A(d) and remanding the matter for proper procedure.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752586 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-06-2023
• Assessment Year: misc
• Other Referred Cases: Union of India Vs Ashish Agarwal in Civil Appeal No.3005 of 2022
• Laws Referred To: Articles 226 and 227 of the Constitution of India, Section 148A of the IT Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: M V SHESHACHALA; ARAVIND CHAVAN
• Keywords: Assessment Order; Income Tax; Notice; Opportunity to file objections; Writ petition
• Section: 148A(b); 148A(d)

Judgement Text

"- 1 - NC: 2023:KHC:21795 WP No. 11790 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2023 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 11790 OF 2023 (T-IT) BETWEEN: SRI. AJEETH S/O. LATE A.P. GIRIVASAN AGED 44 YEARS R/AT. NO.100, RAMESH NIVAS 12TH CROSS, RAMAMURTHY NAGAR BENGALURU - 560 016 …PETITIONER (BY SRI: MV. SHESHACHALA SR, ADV., SRI: ARAVIND V CHAVAN, ADVOCATE) AND: 1. ASSESSING OFFICER INCOME TAX OFFICER NATIONAL E ASSESSMENT CENTRE NO.412-413, 1ST FLOOR OPP. METRO PILLAR NO.793 DWARKA MOR NEW DELHI - 110 059. 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 4(1)(1) BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095. 3. PRINCIPAL COMMISSIONER OF INCOME TAX-4 BMTC BUILDING 80 FEET ROAD, KORAMANGALA BENGALURU - 560 095. …RESPONDENTS (BY SRI: E.I. SANMATHI, ADVOCATE) Digitally signed by B K MAHENDRAKUMAR Location: High Court of Karnataka - 2 - NC: 2023:KHC:21795 WP No. 11790 of 2023 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO - QUASH THE ASSESSMENT ORDER DATED 17.05.2023 BEARING O.ITBA/AST/S/147/2023-24/1052911676(1) ANNEXURE-H3 PASSED BY RESPONDENT NO.1 FOR ASSESSMENT YEAR 2015-16; CONSEQUENTLY QUASH THE ORDER DATED 26.07.2022 ANNEXURE- E3 PASSED UNDER SECTION 148A OF THE IT ACT BEARING NO.ITBA/COM/F/17/2022-23/1044110762(1) PASSED BY RESPONDENT NO.2 AS IT IS CONTRARY TO THE LAW DECLARED BY THE HON'BLE SUPREME COURT IN ASHISH AGARWAL (SUPRA) AND ETC., THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, THE COURT PASSED THE FOLLOWING: ORDER The petitioner has sought for issuance of writ of certiorari to quash the assessment order at Annexure-H3 dated 17.05.2023 and also sought for setting aside of order at Annexure-E3. 2. Learned Senior Counsel Shri M V Sheshachala for the petitioner submits that Section 148 notice at Annexure-E1 dated 26.07.2022 is required to be construed as 148A(b) notice in terms of the judgment of the Hon'ble Apex Court in Union of India Vs Ashish Agarwal in Civil Appeal No.3005 of 2022. It is submitted that the procedure then to the followed in terms of the amended provision and the cognate provision under Section 148 would be that the petitioner is granted opportunity to file his objections to 148A(b) notice, after which, order under - 3 - NC: 2023:KHC:21795 WP No. 11790 of 2023 148A(d) may be passed accepting the explanation of the petitioner and dropping of the proceedings or passing of the order otherwise while proceeding to issue notice under 148. It is further submitted that this process though procedural must be construed as conferring substantive right on the petitioner assessee since if any grounds are made out in the reply to the notice under 148A(b) and the assessee is successful in convincing the authority, the proceedings itself may come to an end. 4. It is pointed out that notice 148 was dated 26.07.2022 and the order under 148A(d) came to be passed on the same date itself. It is clear that no opportunity was granted to the petitioner to make out reply before passing 148A(d) order. Accordingly, on this sole ground, the order under 148A(d) at Annexure-E3 is set aside and the matter is remanded to the stage, post notice at Annexure-E1. 5. The petitioner to file his objection to the notice at Annexure-E1 and the respondents to proceed further in accordance with law. All the contentions are kept open. - 4 - NC: 2023:KHC:21795 WP No. 11790 of 2023 Accordingly, the petition is disposed off. The order at Annexure-H3 is set aside as consequential relief of 148A(d) order having been set aside. Sd/- JUDGE *bgn/- "