MRS.LALITHA W/O GIRISH HATTARKI, vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,

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WP/146249/2020HC KarnatakaKAHC02002066202026 September 2024Author: JYOTI MULIMANI3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that it was proper to direct the department not to precipitate the matter concerning the continuation of proceedings initiated under Section 153C of the Act until the petitioner's representation was considered. The court ordered that the proceedings initiated under Section 153C shall be kept in abeyance until a speaking order is passed on the representation submitted by the petitioner. Liberty was also granted to the petitioner to approach the appropriate forum to question the impugned notice on any other legal grounds. The writ petition was disposed of accordingly. The court did not decide on the merits of the Section 153C notice itself, but rather on the procedural aspect of keeping proceedings in abeyance.

What were the facts?

The petitioner, Mrs. Lalitha, filed a writ petition challenging a notice issued by the Assistant Commissioner of Income Tax under Section 153C of the Income Tax Act, 1961. The petitioner contended that she was unable to comply with the notice due to the non-availability of relevant documents to file her returns. The High Court noted that a previous writ petition filed by the petitioner (W.P.No.110664/2019) had been disposed of with a direction to the department to consider her representation. The court observed that the department was directed not to precipitate the matter until the petitioner's representation was considered.

What were the issues?

1. Whether the Income Tax Department should be restrained from precipitating proceedings initiated under Section 153C of the Income Tax Act, 1961, pending consideration of the petitioner's representation? (Question of law and fact, concerning the procedural fairness and the application of Section 153C). Assessee's contention: The petitioner argued that she was unable to comply with the Section 153C notice due to the non-availability of relevant documents for filing her returns. Revenue's contention: The judgment does not record any specific contentions from the revenue regarding the petitioner's inability to comply or the merits of the Section 153C notice. However, the revenue was represented by counsel.

Which sections of the Income-tax Act were involved?

Section 153C

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 26TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 146249 OF 2020 (T-IT) BETWEEN:

MRS.LALITHA W/O GIRISH HATTARKI, AGE:48 YEARS, OCC: BUSINESS, R/O: PLOT NO.10898, 1ST MAIN, 5TH CROSS, BEHIND SAIT PETROL PUMP, SADASHIV NAGAR, BELAGAVI-590 001. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI., ADVOCATE)

AND:

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL OFFICE, 1ST FLOOR, SURESH COMPLEX, OPP. FIRE STATION, SANJAY GANDHI NAGAR, BELLARY-583 104. …RESPONDENT (BY SRI. Y.V.RAVIRAJ., ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS.

THIS WRIT PETITION IS LISTED FOR HEARING- INTERLOCUTORY APPLICATION, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., counsel for the petitioner and Sri.Y.V.Raviraj., counsel for the respondent have appeared in person.

Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA

2.

The petitioner has questioned the Notice issued by the Income Tax Department under Section 153C of the Income Tax Act, 1961 vide Annexure-H. 3. Counsel for the respective parties urged several contentions. Heard the contentions and perused the Writ papers with care. 4. The contention of the petitioner is that she is unable to comply with the 153C notice due to non-availability of the relevant documents to file the returns. 5. Suffice it to note that this Court has disposed of the Writ Petition (W.P.No.110664/2019) and a Mandamus is ordered as under: “Liberty is given to the petitioner to file a fresh representation along with documents within four weeks from the receipt of the certified copy of this order. If such a representation is submitted, the department/ jurisdictional officer shall consider Annexure-E and also the fresh representation that would be submitted by the petitioner in accordance with the law, within eight weeks thereafter. It is made clear that the department shall not precipitate the matter till the consideration of the letter/ representation of the petitioner.”

Therefore, this Court considers it proper to direct the department not to precipitate the matter with regard to continuation of proceedings initiated under Section 153C of the Act till the consideration of the petitioner’s representation. It is made clear that the proceedings initiated under Section 153C of the Act shall be kept in abeyance till a speaking order is passed on the representation submitted by the petitioner. Liberty is also accorded for the petitioner to approach appropriate forum to question the impugned notice on any other legal grounds. 6. Resultantly, the Writ Petition is disposed of. Because of disposal of Writ Petition, pending interlocutory applications if any are disposed of.

Sd/- (JYOTI MULIMANI) JUDGE TKN List No.: 2 Sl No.: 11.4

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