VIREN RASHMIKANTH MEHTA V. INCOME TAX OFFICER

WP/43194/2015

AI Insights

The case involves multiple writ petitions filed by Viren Rashmikanth Mehta and Haridas C. Ashar (HUF) against the Income Tax Officer, challenging the assessment orders and consequential notices of demand issued for the assessment years 2006-07 and 2007-08. The petitioners argued that the reassessment orders were passed without confronting them with the adverse material, which was based on third-party information. The court, however, found that the petitioners had an alternative remedy available through an appeal under the Income Tax Act, 1961, and thus dismissed the petitions, encouraging the petitioners to pursue the appellate route.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 755173 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 13-03-2018
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Constitution of India
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: PRADEEP KUMAR
• Keywords: Alternative remedy; Assessment Order; Income Tax; Natural Justice; Writ petition
• Section: 147; 143(3); 226; 227

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF MARCH, 2018 BEFORE THE HON’BLE MRS.JUSTICE S.SUJATHA WRIT PETITION No.43194/2015 (T-IT) C/W WP No.43195/2015, WP No.46036/2015 In WP No. 43194/2015 BETWEEN: Viren Rashmikanth Mehta S/o Rashmikanth Mehta, Aged about 55 years, Residing at No.29/A Shanthappa Lane, S.J.P. Road Cross, Bengaluru – 560 002. ….Petitioner (By Sri. Pradeep Kumar, Advocate for Sri. Harish V. S., Advocate) AND: Income Tax Officer, Ward 5(2), Unity Building Annexe, 6th Floor, Mission Road, Bengaluru – 560 027. ….Respondent (By Sri. K. V. Aravind, Advocate) This writ petition is filed under Articles 226 & 227 of the Constitution of India praying to quash the impugned assessment order passed by the respondent under Section 147 read with Section 143(3) of the Income Tax Act 1961, dated 24.03.2014 for the assessment year 2006-07 i.e., 2 Annexure-B and consequential notice of demand issued by the respondent in Form-7, dated 24.03.2014 for the assessment year 2006-07 i.e., Annexure-C and etc,. In WP No. 43195/2015 BETWEEN: Viren Rashmikanth Mehta (HUF) S/o Rashmikanth Mehta, Aged about 55 years, Residing at No.29/A Shanthappa Lane, S.J.P. Road Cross, Bengaluru – 560 002. ….Petitioner (By Sri. Pradeep Kumar, Advocate for Sri. Harish V. S., Advocate) AND: Income Tax Officer, Ward 5(2), Unity Building Annexe, 6th Floor, Mission Road, Bengaluru – 560 027. ….Respondent (By Sri. K. V. Aravind, Advocate) This writ petition is filed under Articles 226 & 227 of the Constitution of India praying to quash the impugned assessment order passed by the respondent under Section 147 read with Section 143(3) of the Income Tax Act 1961, dated 24.03.2014 for the assessment year 2006-07 i.e., Annexure-B and consequential notice of demand issued by the respondent in Form-7, dated 24.03.2014 for the assessment year 2006-07 i.e., Annexure-C and etc., 3 In WP No. 46036/2015 BETWEEN: Late. Haridas C. Ashar (HUF) Bengaluru Since Deceased Represented by its Legal Heirs 1. Hiren H. Ashar S/o Late. Haridas C Ashar, Aged about 49 years, Residing at: No. 386/A, 7th Cross, 6th Phase, 1st Stage, Shivanagar, Bengaluru - 560 044. 2. Suhil H. Ashar S/o Late Haridas C Ashar Age about 45 years Residing at: F-303, Marigold Block, ETA Gardens, Near Binny Mills, Magadi Road, Bengaluru - 560 023. ….Petitioners (By Sri. Pradeep Kumar, Advocate, for Sri. Harish V. S., Advocate) AND: Income Tax Officer Ward 8(3), Jeevan Sampige Building, No. 1, Sampige Road, Malleshwaram, Bengaluru - 560 003. ….Respondent (By Sri. K. V. Aravind, Advocate) This writ petition is filed under Articles 226 & 227 of the Constitution of India praying to quash the impugned assessment order passed by the respondent under Section 143(3) read with Section 147 of the Income Tax Act, 1961, 4 dated 31.10.2014 for the assessment year 2007-08 i.e., Annexure-E and consequential notice of demand issued by the respondent, dated 31.10.2014 for the assessment year 2007-08, i.e., Annexure-F and etc., These writ petitions coming on for Preliminary Hearing in ‘B’ Group, this day, the court made the following: ORDER Petitioners have called in question the legality and correctness of the impugned assessment order passed by the respondent under Section 147 read with Section 143 (3) of the Income Tax Act, 1961 (‘the Act’ for short) dated 24.03.2014 relating to the assessment year 2006-2007 and consequential notice of demand at Annexures-B and C respectively in W.P. No.43194/2015 and W.P. No.43195/2015 as well as assessment order dated 31.10.2014 for the assessment year 2007-2008 and consequential notice of demand at Annexures-E and F respectively in W.P. No.46036/2015. 2. Learned counsel for the petitioners would contend that the re-assessment orders are hit by the principles of natural justice as the adverse material against 5 the petitioners-assessees were not confronted or furnished to the petitioners but on third party’s information, the impugned assessment orders have been passed. 3. Heard the learned counsel appearing for the respective parties. 4. This Court is of the considered opinion that the petitioners cannot invoke the extra-ordinary jurisdiction under Articles 226 and 227 of the Constitution of India circumventing the availability of alternative remedy of an appeal provided under the Act. Hence, the present petitions cannot be maintained and are disposed of with liberty to the petitioners to avail the alternative remedy by way of an appeal available under the provisions of the Act. With the aforesaid observations, these writ petitions stand disposed of. No costs. Sd/- JUDGE Mds/- "