BASAVARAJ AKASHI vs. CENTRAL BOARD OF DIRECT TAXES

WP/201783/2024HC KarnatakaKAHC03006413202413 November 2024Bench: S.R.KRISHNA KUMAR6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, without expressing any opinion on the merits or demerits of the rival contentions, deemed it just and appropriate to dispose of the writ petition. The Court directed the 4th respondent (Appellate Authority) to dispose of the petitioner's pending appeal within a period of three months from the date of receipt of a copy of the order. Furthermore, the Court directed that the interim order dated 19.07.2024, which restrained the 2nd respondent from taking precipitative action, shall continue to remain in force until the disposal of the appeal. All rival contentions on all aspects of the matter were kept open.

What were the facts?

The petitioner, Shri Basavaraj Akashi, filed a writ petition before the High Court of Karnataka challenging an order dated 23.12.2021 issued by the Income Tax Officer (2nd respondent) demanding 20% of the outstanding tax for Assessment Year (AY) 2017-18. The petitioner had also filed an appeal before the National Faceless Appeal Centre (4th respondent) against an assessment order dated 24.09.2021, which was still pending adjudication. The petitioner sought quashing of the recovery demand and a direction for the expeditious disposal of his appeal. An interim order was passed on 19.07.2024, directing the 2nd respondent not to take precipitative action against the petitioner.

What were the issues?

1. Whether the order dated 23.12.2021 issued by the Income Tax Officer, seeking recovery of 20% of the outstanding tax demand for AY 2017-18, is liable to be quashed? (Question of law and fact, concerning recovery proceedings). 2. Whether a writ of mandamus should be issued to the National Faceless Appeal Centre to dispose of the petitioner's pending appeal expeditiously and in accordance with the principles of natural justice? (Question of law, concerning administrative directions). Assessee's Contentions: The petitioner sought quashing of the recovery demand and a direction for the expeditious disposal of his appeal. He relied on the pendency of his appeal before the appellate authority. Revenue's Contentions: The judgment records that learned counsel for both sides urged several contentions, but does not specify the revenue's arguments.

AI-generated summary — verify with the full judgment below

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 13TH DAY OF NOVEMBER, 2024 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.201783 OF 2024 (T-IT) BETWEEN:

SHRI BASAVARAJ AKASHI, AGED ABOUT 86 YEARS, 1 BASAVARAJ, SOLAPUR ROAD, NEAR BHUTNAL TANK, VIJAYAPURA, VIJAYAPURA DISTRICT, KARNATAKA – 586 101.

…PETITIONER (BY SRI. ASHOK A. KULKARNI & SRI. GOPALKRISHNA B. YADAV, ADVOCATES)

AND: 1. CENTRAL BOARD OF DIRECT TAXES, CENTRAL SECRETARIAT, NORTH BLOCK, NEW DELHI-110 001, REPRESENTED BY THE ADDITIONAL/JOINT/DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE.

INCOME TAX OFFICER, WARD 1 & TPS, BIJAPUR, AAYAKAR BHAVAN,

Digitally signed by SUMITRA SHERIGAR Location: HIGH COURT OF KARNATAKA

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

NEAR ALL INDIA RADIO, ATHANI ROAD, VIJAYAPUR, VIJAYAPURA DISTRICT, KARNATAKA – 586 104.

PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, NAVANAGAR, HUBBALLI, HUBLI-DHARWAD DISTRICT, KARNATAKA – 580 025.

CENTRAL BOARD OF DIRECT TAXES, CENTRAL SECRETARIAT, NORTH BLOCK, NEW DELHI – 110 001, REPRESENTED BY THE COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE.

…RESPONDENTS (BY SRI. M. THIRUMALESH, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR ORDER OR DIRECTION QUASHING THE ORDER DATED 23.12.2021 ISSUED BY THE 2ND RESPONDENT SEEKING RECOVERY OF 20% OF OUTSTANDING TAX DEMAND, BEARING DIN & LETTER NO.ITBA/RCV/F/17/2021-2022/1038074700, DATED 23.12.2021 FOR AY 2017-18 IN ANNEXURE-“E” SUBMITTED ONLINE COPY INCLUDING ATTENDANT ACTIONS; ISSUE A WRIT OF MANDAMUS, OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION TO THE 4TH RESPONDENT TO DISPOSE OF THE APPEAL FILED BY THE PETITIONER BEARING ACKNOWLEDGEMENT NUMBER 786854180051121 DATED 05.11.2021 FOR AY 2017-18 IN ANNEXURE-“D”, EXPEDITIOUSLY IN ACCORDANCE WITH LAW AT THE EARLIEST AND IN ACCORDANCE WITH THE PRINCIPLES OF NATURAL JUSTICE, INCLUDING ATTENDANT ACTIONS; GRANT SUCH OTHER RELIEF THAT THIS HON’BLE COURT MAY THINK FIT

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

INCLUDING THE COST OF THIS PETITION IN THE INTEREST OF JUSTICE AND EQUITY.

THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDERS WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER (PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR)

In this petition, the petitioner seeks the following reliefs: “a) Issue a writ of certiorari or any other appropriate writ or order or direction quashing the order dated 23.12.2021 issued by the 2nd respondent seeking recovery of 20% of outstanding tax demand, bearing DIN & Letter No.ITBA/RCV/F/17/2021- 2022/1038074700, dated 23.12.2021 for AY 2017-18 in Annexure-“E” submitted online copy including attendant actions. b) Issue a writ of mandamus, or any other appropriate writ, order or direction to the 4th respondent to dispose of the appeal filed by the petitioner bearing acknowledgement number 786854180051121 dated 05.11.2021 for AY 2017-18 in Annexure-“D”,

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

expeditiously in accordance with law at the earliest and in accordance with the principles of natural justice, including attendant actions. c) Grant such other relief that this Hon’ble Court may think fit including the cost of this petition in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. A perusal of the material on record will indicate that, aggrieved by the assessment order dated 24.09.2021, the petitioner has filed an appeal before the 4th respondent, in which his request for stay was rejected by directing the petitioner to pay 20% of the disputed tax amount. It is an undisputed fact and matter of record that the appeal filed by the petitioner is still pending adjudication before the 4th respondent even till today. Further, on 19.07.2024, this Court passed the following interim order:

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

“Sri M. Thirumalesh, learned counsel is directed to accept notice for the respondents.

The petitioner is also directed to serve the respondent No.3 personally and through speed post.

Till the next date of hearing, respondent No.2 is directed not to take any precipitative action as per Annexure-C against the petitioner. List on 02.08.2024.” The aforesaid interim order passed by this Court in the present petition continues to remain in force and operates between the parties even till today. 4. Under these circumstances, though several contentions have been urged by both sides in support of their respective claims in the present petition as well as in the appeal before the 4th respondent, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of this petition, directing the 4th respondent - Appellate Authority to dispose of the appeal filed by the petitioner

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NC: 2024:KHC-K:8565 WP No. 201783 of 2024

within a period of three months from the date of receipt of a copy of this order. 5. It is further directed that, till disposal of the appeal by the 4th respondent as stated supra, the aforesaid interim order dated 19.07.2024 passed by this Court in the present petition shall continue to remain in force and operate between the parties. 6. All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same. 7. With the aforesaid directions, the petition stands disposed of.

Sd/- (S.R.KRISHNA KUMAR) JUDGE

LG List No.: 1 Sl No.:63.1

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