LAHU BABAN JAMDADE vs. INCOME TAX OFFICER WARD 9 1

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WP/13176/2023HC BombayHCBM01025968202326 February 2024Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE3 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court disposed of the writ petitions with liberty granted to the petitioners to file a response to the notice issued under Section 148 of the Income Tax Act, 1961, and to provide further information as observed in the order passed under Section 148A(d). The Court directed that the Assessing Officer (AO) shall grant a personal hearing to the petitioners before passing any order, with at least seven working days' advance notice. The order to be passed by the AO must be a reasoned order, addressing all submissions made by the petitioners. The petitioners were given two weeks to file all other necessary documents and information related to motor vehicle purchases and time deposits with Punjab National Bank. The Court explicitly stated that it had not made any observations on the merits of the case, and all rights and contentions of the parties were kept open. The principle derived is that procedural fairness, including personal hearings and reasoned orders, is crucial in tax proceedings, especially when reassessment is initiated.

What were the facts?

The petitioners, Ankush Baban Jamdade and Lahu Baban Jamdade, filed writ petitions before the Bombay High Court challenging notices issued under Section 148 of the Income Tax Act, 1961. The petitions were heard for some time. The petitioners' counsel stated that the petitions should be disposed of with liberty to file a response to the Section 148 notice and to provide further information as observed in the order passed under Section 148A(d) of the Act. The petitioners were under the impression that certain documents and details were not required. The Assessing Officer (AO) was directed to provide a personal hearing before passing any order, with at least seven working days' advance notice. The order to be passed must be reasoned and address all submissions. The petitioners were granted two weeks to file all other necessary documents and information related to motor vehicle purchases and time deposits with Punjab National Bank.

What were the issues?

1. Whether the petitioners should be granted liberty to file a response to the notice issued under Section 148 of the Income Tax Act, 1961, and provide further information as observed in the order passed under Section 148A(d) of the Act, given their impression that certain documents were not required. Assessee's Contention: The petitioner's counsel stated that the petition should be disposed of with liberty to file a response to the Section 148 notice and to provide further information. The assessee was under the impression that these documents were not asked for or details need not be provided. They argued that if the AO expected such documents, a personal hearing should have been granted, during which they would have provided the information and explained the situation. Revenue's Contention: The judgment does not record any specific contentions from the revenue's side regarding the issues raised by the petitioners. The revenue was represented, but their arguments on the merits of the petitioners' claims are not detailed.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A(d)

AI-generated summary — verify with the full judgment below

1/3 436-aswp-13175-2023 with aswp-13176-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 13175 OF 2023 Ankush Baban Jamdade …Petitioner Versus Income Tax Officer, Ward-9(1) & Ors. …Respondents WITH WRIT PETITION NO. 13176 OF 2023 Lahu Baban Jamdade …Petitioner Versus Income Tax Officer, Ward-9(1) & Ors. …Respondents Mr. Ajay R. Singh a/w Mr. Akshay Pawar for Petitioner. Mr. Suresh Kumar for Respondents-Revenue. CORAM: K. R. SHRIRAM & DR. NEELA GOKHALE, JJ. DATED: 27th February 2024 PC:- WRIT PETITION NO.

13175

OF 2023

: 1. After the petition was heard for sometime, Mr. Singh states the petition be disposed with liberty to file a response to the notice issued under Section 148 of the Income Tax Act, 1961 (“the Act”). Mr. Singh stated that he will file the documents and provide further information, as observed in the order passed under Section 148A(d) of the Act. Mr. Singh states Assessee was under the impression that these documents were not asked for or details need not be provided, but if the Assessing Officer was expecting those documents and information, he could have given a personal hearing and Petitioner would have made available and explain the situation. Gitalaxmi

2/3 436-aswp-13175-2023 with aswp-13176-2023.doc 2. The AO shall give a personal hearing before passing any order, notice whereof shall be communicated atleast seven working days in advance. The order to be passed shall be a reasoned order dealing with all submissions of Petitioner. 3. In the circumstances, giving liberty to Petitioner to file within two weeks all other documents and necessary information, as stated to have not been given in the order passed under Section 148A(d) of the Act, relating to the motor vehicle purchase and the time deposits with the Punjab National Bank, the petition is disposed. 4. All rights and contentions of the parties are kept open. We hasten to add we have not made any observations on merits of the case. WRIT PETITION NO.

13176

OF 2023

: 1. After the petition was heard for sometime, Mr. Singh states the petition be disposed with liberty to file a response to the notice issued under Section 148 of the Income Tax Act, 1961 (“the Act”). Mr. Singh stated that he will file the documents and provide further information, as observed in the order passed under Section 148A(d) of the Act. Mr. Singh states Assessee was under the impression that these documents were not asked for or details were need not be provided, but if the Assessing Officer was expecting those documents Gitalaxmi

3/3 436-aswp-13175-2023 with aswp-13176-2023.doc and information, he could have given a personal hearing and Petitioner would have made available and explain the situation. 2. The AO shall give a personal hearing before passing any order, notice whereof shall be communicated atleast seven working days in advance. The order to be passed shall be a reasoned order dealing with all submissions of Petitioner. 3. In the circumstances, giving liberty to Petitioner to file within two weeks all other documents and necessary information, as stated to have not been given in the order passed under Section 148A(d) of the Act, relating to the time deposits with the Punjab National Bank, the petition is disposed. 4. All rights and contentions of the parties are kept open. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.) Gitalaxmi GITALAXMI KRISHNA KOTAWADEKAR Digitally signed by GITALAXMI KRISHNA KOTAWADEKAR Date: 2024.02.29 14:11:41 +0545

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