PRAKASH CHAND BETHALA (HUF) vs. THE INCOMA TAX OFFICER

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WP/9752/2021HC KarnatakaKAHC01016684202110 September 2024Author: S.R.KRISHNA KUMAR3 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, disposed of the writ petition by directing the respondent (Income Tax Officer) to consider and pass appropriate orders on the rectification application filed by the petitioner under Section 154 of the Income Tax Act. The respondent was directed to do so in accordance with law, after providing a sufficient and reasonable opportunity to the petitioner and hearing him. The Court also reserved liberty for the petitioner to take recourse to such remedies as available in law, including challenging the orders to be passed on the rectification application as well as the original assessment order, subject to all just exceptions. All rival contentions on all aspects of the matter were kept open.

What were the facts?

The petitioner, Prakash Chand Bethala (HUF), filed a writ petition before the High Court of Karnataka seeking to quash an order of assessment passed by the Income Tax Officer under Section 144 read with Section 147 of the Income Tax Act for Assessment Year 2012-13, dated December 19, 2019. The petitioner also sought to quash the consequential notice of demand issued by the respondent on the same date. The material facts indicate that the petitioner had filed a rectification application under Section 154 of the Income Tax Act on January 24, 2020, which was still pending adjudication at the time of the High Court's order.

What were the issues?

1. Whether the High Court should quash the order of assessment passed under Section 144 read with Section 147 of the Income Tax Act and the consequential notice of demand, given that a rectification application under Section 154 is pending adjudication. Assessee's Contention: The assessee, Prakash Chand Bethala (HUF), sought to quash the assessment order and demand notice. While specific arguments on the merits of the assessment are not detailed, the filing of a pending rectification application suggests a procedural grievance or an attempt to rectify perceived errors in the assessment order. Revenue's Contention: The revenue, represented by the Income Tax Officer, presumably defended the assessment order and demand notice. However, the judgment does not record specific arguments made by the revenue regarding the merits of the case or the pending rectification application.

Which sections of the Income-tax Act were involved?

Section 144,Section 147,Section 154

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF SEPTEMBER, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 9752 OF 2021 (T-IT) BETWEEN:

PRAKASH CHAND BETHALA (HUF) A HINDU UNDIVIDED FAMILY NO.815, 8TH BLOCK KORAMANGALA BANGALORE-560 095 REPRESENTED BY ITS KARTA MR PRAKASH CHAND BETHALA S/O. MR KISHAN LAL JAIN AGED ABOUT 70 YEARS …PETITIONER

(BY SRI. NARENDRA KUMAR J. JAIN, ADVOCATE) AND:

THE INCOME TAX OFFICER WARD 4(3)(3) BMTC BUILDING, 80 FEET ROAD 6TH BLOCK KORAMANGALA BANGALORE - 560 095 …RESPONDENT (BY SRI. M. DILIP, ADVOCATE FOR R1)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER OF ASSESSMENT PASSED BY THE RESPONDENT UNDER SECTION 144 READ WITH SECTION 147 OF THE INCOME TAX ACT, FOR THE ASSESSMENT YEAR 2012-13, DATED 19.12.2019, I.E., ANNX-E AND THE CONSEQUENTIAL NOTICE OF DEMAND ISSUED BY THE RESPONDENT IN FORM 7, DATED 19.12.2019, RELATING TO THE ASSESSMENT YEAR 2012-13 VIDE ANNX-E1 AND ETC.

Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs: (a) Issue a Writ of Certiorari or such other Writ of appropriate nature and quash the impugned order of assessment passed by the Respondent U/s. 144 r.w. Section 147 of the Income Tax Act, for the Assessment Year 2012-13, dated 19.12.2019, i.e., Annexure 'E' and the consequential notice of demand issued by the Respondent in Form 7, dated 19.12.2019, relating to the Assessment Year 2012-13, i.e., Annexure 'E-1'; and (b) Grant such other relief/s as this Hon'ble Court may deem fit in the circumstances of the case in the interest of equity and justice.

2.

Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. Though several contentions have been urged by both sides in respect of their respective claims, in the light of the undisputed fact that the rectification application filed by the petitioner at Annexure-F dated 24.01.2020 under Section 154 of the Income Tax Act, 1961 is still pending adjudication even till today and the same is not disposed of by the respondent.

4.

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 respondent to consider and pass the appropriate orders on the rectification application at Annexure-F dated 24.01.2020 filed by the petitioner in accordance with law after providing sufficient and reasonable opportunity to the petitioner and hearing him. 5. So also upon the respondent passing the orders on the rectification application, liberty is reserved in favour of the petitioner to take recourse to such remedy as available in law including challenging the orders to be passed as well as assessment order in accordance with law subject to all just exceptions. Ordered accordingly. 6. All rival contentions on all aspects of the matter are kept open and no opinion is expressed on the same.

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

MDS List No.: 1 Sl No.: 1

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