Sri. Prasanna Vasudev Ghotage V. The Assistant Commissioner of Income Tax, Central Circle - 2

WP/103723/2014

AI Insights

The case involves Sri. Prasanna Vasudev Ghotage, the petitioner, who is the Managing Director of 29 companies, including a partnership firm, and an assessee under the Income Tax Act. A search under Section 132 of the Income Tax Act was conducted on these companies on 29.09.2011, leading to notices under Sections 153A and 153C for filing returns of income for the assessment years 2006-07 to 2012-13. The petitioner, who was in judicial custody during the relevant period, failed to file the returns, prompting the issuance of a final show cause notice on 20.01.2014. The petitioner requested an extension of 15 days to comply, citing unavoidable circumstances. The court found that the statutory period for completing the assessment proceedings, as mandated by Section 153B, must be adhered to, thus dismissing the petition.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 799271 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 25-03-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: RAVI RAJ
• Assessee Lawyers: VEENA HEGDE
• Keywords: Assessment years; Extension of time limit; Income Tax; Judicial Custody; Quash notice; Search and seizure; Writ petition
• Section: 132; 153A; 131; 153C; 153B

Judgement Text

"1 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 25TH DAY OF MARCH, 2014 BEFORE THE HON’BLE MR. JUSTICE ARAVIND KUMAR WRIT PETITION No.103723/2014 & WRIT PETITION NOS.104112-114/2014 & WRIT PETITION NOS.104115-117/2014 (T-IT) BETWEEN: SRI.PRASANNA VASUDEV GHOTAGE AGE: ABOUT 47 YEARS, OCC: BUSINESS R/O. 202, CHINDAMBAR NAGAR BELGAUM OFF: 1088/B, PRERANA HOMMES HINDWADI, BELGAUM –590 006 ..PETITIONER (BY SMT.VEENA HEGDE, ADVOCATE) 2 AND: THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 2, `SHARADHA’ SARAF COLONY KHANAPUR ROAD, TILAKWADI BELGAUM ..RESPONDENT (BY SRI.RAVIRAJ Y.V., ADVOCATE) THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) ISSUE A DIRECTION FOR THE PURPOSE OF EXTENDING THE TIME LIMIT BY A PERIOD OF ONE YEAR FROM 31.03.2014 FOR FILING RETURNS OF INCOME FOR THE SUBJECT ASSESSMENT YEARS 2006-07 TO 2012-13. B) ISSUE A DIRECTION TO QUASH THE IMPUGNED NOTICE DATED 14.02.2014 ISSUED BY RESPONDENT, ENCLOSED AS ANNEXURE-D. THESE PETITIONS COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING: O R D E R Sri.Raviraj, learned counsel appearing for Income Tax Department is directed to take notice for 3 respondent and he is permitted to file vakalathnama within four weeks from today. 2. Heard Smt.Veena Hegde, learned counsel appearing for petitioner and Sri.Raviraj Y.V., learned counsel appearing for respondent. Perused the case papers. 3. Petitioner is seeking for a mandamus to extend the time limit for filing the return of income for assessment years 2006-07 to 2012-13 beyond 31.03.2014 and to quash the notice dated 14.02.2014 issued by second respondent vide Annexure-D. 4. Perusal of the records would indicate petitioner is the Managing Director of 29 companies which includes Partnership firm also and he is an assessee under the Income Tax Act. A search under section 132 of the Act was conducted on all the 29 companies by the 4 respondent authorities on 29.09.2011. Pursuant to which respondent authorities issued notices under section 153A and 153C calling upon the assessee to file the return of income for the assessment years 2006-07 to 2012-13 (block assessment) within time stipulated under the Act. Undisputedly petitioner has not filed the return of income. Petitioner is said to have been taken into judicial custody and lodged at Central Jail, Chhattisgarh. He has been in the judicial custody from 30.10.2012 i.e., after almost one year, one month from the date of search proceedings conducted under section 132 of the Income Tax Act. 5. On account of non filing of the returns of income by petitioner and in view of statutory bar created under section 153B of the Income Tax Act on the jurisdictional Assessing Officer to conclude the assessment proceedings within the period prescribed thereunder and said prescribed period coming to an end 5 by 31.03.2014 a final show cause notice came to be issued to the petitioner on 20.01.2014 calling upon petitioner to file returns of income. Summons under section 131 was also issued on the petitioner on 13.02.2014. Pursuant to which petitioner has appeared before the Assistant Commissioner of Income Tax, Central Circle 2, Belgaum and has stated that due to unavoidable circumstances he has not been able to comply with the demand made in the notice issued to him and has requested for further 15 days time. When search has been conducted under section 132 and notice having been issued pursuant to the said search proceedings under section 153A and 153C, Assessing Officer is required to conclude the assessment proceedings in respect of each assessment year falling within six assessment years referred to clause (b) sub- section (1) of Section 153A within a period of two years from the end of financial year in which the list of authorisation for search under section 132 and for 6 requisition under section 132A was to be executed and same is mandatory. Undisputedly in the instant case search having been conducted on 29.09.2011 two years limitation prescribed under section 153B would come to an end on 31.03.2014 and if the assessment proceedings are not concluded assessee would definitely take umbrage as time barred assessment proceedings having been conducted by jurisdictional authority. On the other hand if assessment proceedings are concluded assessee would have a right to appeal under section 246A before the jurisdictional appellate authority and appeal being continuation of original proceedings it would be always open to the assessee to raise all such grounds which he would have urged before the Assessing Officer. Hence, I am of the view that prayer sought for in the writ petition cannot be granted. Hence, Writ 7 Petition stands dismissed subject to observation made herein above. Ordered accordingly. Sd/- JUDGE SBN "