KALBURGI CONSTRUCTIONS vs. ADDITIONAL COMMISSIONER OF INCOME TAX

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WP/102296/2023HC KarnatakaKAHC02003727202306 January 2025Author: M.NAGAPRASANNA5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Karnataka, Dharwad Bench, disposed of the writ petition as withdrawn. The learned counsel for the petitioners moved the matter seeking withdrawal of the petition to file separate petitions for separate prayers. The Court reserved liberty for the petitioners as indicated in the memo. Therefore, no decision was rendered on the merits of the issues raised in the writ petition. The operative direction was to dispose of the petition as withdrawn, preserving the petitioners' right to file separate petitions.

What were the facts?

The petitioners, comprising several Associations of Persons (AOPs) and individuals, filed a writ petition before the High Court of Karnataka, Dharwad Bench. They sought directions to the Income Tax authorities to treat Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) made from the income of AOPs (Petitioners 1-4) as payments on behalf of individuals (Petitioners 5-25) for Assessment Years (AYs) 2015-16 to 2022-23. They also prayed for the reduction of outstanding demands and determination of consequential refunds, along with interest. Additionally, they sought to quash electronically issued Section 148 notices for AYs 2015-16 and 2018-19, issued by the Income Tax Officer, Ward 1(1), Hubballi.

What were the issues?

1. Whether the TDS/TCS made from the income of AOPs (Petitioners 1-4) for AYs 2015-16 to 2022-23 should be treated as tax payments on behalf of individuals (Petitioners 5-25), as reflected in Form 26AS and accepted by the revenue under Section 143(1) or Section 154 intimations. 2. Whether the outstanding demand should be reduced and consequential refunds, with interest under Sections 244 and 244A of the Income Tax Act, 1961, should be granted to Petitioners 5-25 for the specified AYs. 3. Whether the electronically issued Section 148 notices by the Income Tax Officer for AYs 2015-16 and 2018-19 are liable to be quashed. Assessee's Contentions: The petitioners argued that TDS/TCS credits were correctly reflected in Form 26AS and accepted by the revenue. They sought the credit to be applied to the individual petitioners to reduce their tax liabilities and claimed consequential refunds. They also challenged the validity of the Section 148 notices. Revenue's Contentions: The judgment does not record any specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 154,Section 148,Section 244,Section 244A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 6TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 102296 OF 2023 (T-IT) BETWEEN: 1. KALBURGI CONSTRUCTIONS PAN: AAAAK3911F; ASSOCIATION OF PERSONS (AOP) REPRESENTED BY RAJESH S/O. MAHADEVSA KALBURGI, AGE 41 YRS.

KALBURGI INVESTMENTS, PAN: AAAAK2438H; AOP REPRESENTED BY SRINIVAS S/O. RAVINDRA, KALBURGI, AGE: 42 YRS.

3.

KALBURGI HOLDINGS PAN: AAAAK6880F; AOP REPRESENTED BY SMT.SANDHYA W/O. SHRINIVAS KALBURGI, AGE: 34 YRS.

4.

KALBURGI ASSOCIATES PAN: AAAAK8832B; AOP REPRESENTED BY SHRINIVAS S/O RAVINDRA KALBURGI, AGE 42 YRS.

5.

AMBASA S/O. VISHWANATH KALBURGI, AGE: 61 YRS; PAN: AAWPV2958E.

6.

ARVIND S/O. VISHWANATH KALBURGI, AGE: 59 YRS; PAN: ABGPV7175E.

7.

SATYANARAYAN S/O. VISHWANATH KALBURGI, AGE: 53 YRS; PAN: AAWPV2998N.

Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka

8.

KRISHNA S/O. MOHAN KALBURGI, AGE: 50 YRS; PAN: ADKPK5762E.

9.

NITYANAND S/O. MOHAN KALBURGI, AGE: 48 YRS; PAN: ADKPK5761H.

10.

RAGHAVENDRA S/O. MOHAN KALBURGI, AGE: 41 YRS; PAN: AHNPK2250J.

11.

SHRINIVAS S/O. RAVINDRA KALBURGI, AGE: 42 YRS; PAN: AHNPK2251K.

12.

VINAYAK S/O. MAHADEV KALBURGI, AGE: 48 YRS; PAN: ADZPK4235H.

13.

RAJESH S/O. MAHADEV KALBURGI, AGE: 41 YRS; PAN: AHNPK2252L.

14.

VIJAYLAXMI W/O. AMBASA KALBURGI, AGE: 56 YRS; PAN: ADCPK7966J.

15.

ANUPAMA W/O. ARVIND KALBURGI, AGE: 54 YRS; PAN: ADCPK7965M.

16.

RANI W/O. SATYANARAYAN KALBURGI, AGE: 44 YRS; PAN: ADCPK7967K.

17.

RADHIKA W/O. KRISHNA KALBURGI, AGE: 40 YRS; PAN:ADKPK5763F.

18.

GEETA W/O. NITYANAND KALBURGI, AGE: 41 YRS; PAN: AGYPK9964H.

19.

SHILPA W/O. RAGHAVENDRA KALBURGI, AGE: 38 YRS; PAN: ANRPK4229M.

20.

SANDHYA W/O. SHRINIVAS KALBURGI, AGE: 34 YRS; PAN: AVKPK6647E.

21.

LAXMI W/O. VINAYAK KALBURGI, AGE: 45 YRS; PAN: ADZPK4236E.

22.

DEEPA W/O. RAJESH KALBURGI, AGE: 33 YRS; PAN: AYJPK8074D;

23.

RAJESH S/O. MAHADEVSA KALBURGI HUF, REPRESENTED BY SRI RAJESH, AGE: 41 YRS., AS KARTA FOR HUF; PAN: AAKHR6505F.

24.

SHRINIVAS S/O. RAVINDRA KALBURGI HUF, REPRESENTED BY SRI SRINIVAS, AGE: 42 RS., AS KARTA FOR HUF; PAN: AARHS6611N.

25.

VINAYAK S/O MAHADEVSA KALBURGI HUF, REPRESENTED BY SRI VINAYAK, AGE: 48YRS., AS KARTA FOR HUF; PAN: AADHK1663A

OCCUPATION OF PETITIONERS: RENTAL AND BUSINESS;

COMMON ADDRESS FOR ALL PETITIONERS: T RAVELLERS BUNGALOW ROAD, DESHPANDE NAGAR, HUBBALLI 580029

…PETITIONERS (BY SRI MANOJ D. PUKALE, ADVOCATE)

AND: 1. ADDITIONAL COMMISSIONER OF INCOME TAX, NAFAC, C-BLOCK, 4TH FLOOR, S.P. M. CIVIC CENTRE, NEW DELHI-110001 DELHI.ADDLCIT.NFAC@INCOMETAX.GOV.IN 011-23221459 9013853810 2. CHIEF COMMISSIONER OF INCOME TAX (REGIONAL ASSESSMENT CENTRE)[REAC] BNG., C.R.BUILDING, NOI.1 QUEENS ROAD, BENGALURU 560001 BANGALORE.CCIT.REAC@INCOMETA.GOV.IN; TEL: 080-22864478 8985970017

3.

CHIEF COMMISSIONER OF INCOME TAX (REAC), 2ND FLOOR, AAYAKAR BHAVAN, E.D.C COMPLEX, PATTO PLAZA, PANAJI – 403001; PANAJI.CCIT.REAC@ INCOMETAX. .; GOV.IN 0832-2438480 9013854229.

4.

INCOME TAX OFFICER WARD 1(1), AREA CODE:KAR; AO TYPE:W; AO NO.1; RANGE CODE:411; C.R. BUILDING, NAVANAGAR, HUBBALLI 580025 EMAIL: HUBLI.ITO1.1@INCOMETAX.GOV.IN

5.

THE ASSESSMENT/VERIFICATION/TECHNICAL/ REVIEW UNIT, INCOME TAX DEPARTMENT, GOI., O/O. ADDL.CIT., NAFAC, C-BLOCK, 4TH FLOOR, S.P. M. CIVIC CENTRE, NEW DELHI-110001. EMAIL:DELHI.ADDLCIT.NFAC@ INCOMETAX.GOV.IN. 011-23221459 9013853810

6.

ASST DIRECTOR OF INCOME TAX, CPC., CENTRALISED PROCESSING CENTRE, INCOME TAX DEPARTMENT, ELECTRONIC CITY POST OFFICE, BENGALURU 560100. …RESPONDENTS (BY SRI Y.V RAVIRAJ, ADVOCATE FOR R1 TO R6)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, WHEREFORE, THE PETITIONERS PRAY THAT THIS HONOURABLE HIGH COURT MAY BE PLEASED TO ISSUE WRIT/S TO RESPONDENT AUTHORITIES VIZ., R-4,R-5 AND R-6. BY WAY OF MANDAMUS TO TREAT THE TDS/TCS MADE FOR ASSESSMENT YEAR 2015-16 TO 2022-23 FROM THE INCOME/S OF AOP PETITIONERS NO.1 TO 4 ACCORDING TO FORM 26AS IN ANNEXURE-A TO A-31 AS PAYMENT OF TAX ON BEHALF OF THE PETITIONERS P-5 TO P-25 CLAIMED IN ANNEXURE-B TO B-164, WHICH IS ACCEPTED BY R-6 VIDE S.143(1) INTIMATION OR S.154 ORDER PRODUCED IN ANNEXURE-C TO C-161. THE RELIEF OF SAID TDS/TCS CREDIT TO BE GIVEN TO THE PETITIONERS P-5 TO P-25 FOR SAID AY 2015-16 TO 2022-23 IS WORKED OUT AND SHOWN IN COLUMN (XII) IN EACH OF THE TABLES FOR RESPECTIVE AY APPENDED SEPARATELY TO THIS WP. BY WAY OF MANDAMUS TO REDUCE THE OUTSTANDING DEMAND AND DETERMINE CONSEQUENTIAL REFUND AMOUNT DUE IF ANY TO P-5 TO P-25 FOR AYS 2015-16 TO 2022-23. BY WAY OF MANDAMUS GRANT SAID REFUND TO P-5 TO P-25 WITH CONSEQUENTIAL INTEREST UNDER SS.244 AND 244A OF IT ACT. BY WAY OF CERTIORARI TO QUASH

THE PRINT COPY OF DIGITALLY SIGNED S.148 ELECTRONIC NOTICES OF IT ACT ISSUED BY R-4 TO (I) AOP P-3 WITH DIN AND NO.ITBA/AST/S/1481/2022-23/1042490409(1) 04/04/22 FOR AY 2015-16 PRODUCED AS ANNEXURE-F FROM STORED ELECTRONIC RECORD OF INCOME TAX (IT) DEPARTMENT OFFICIAL WEBSITE ON THE INTERNET. (II) AOP P-1 WITH DIN AND NO.ITBA/AST/S/1481/2022-23/1042506953(1) 05/04/22 FOR AY 2018-19 PRODUCED AS ANNEXURE-F1 FROM STORED ELECTRONIC RECORD OF IT DEPARTMENT OFFICIAL WEBSITE ON THE INTERNET, AND(III) AOP P-2 WITH DIN AND NO.ITBA/AST/S/1481/2022-23/1042506983(1) 05/04/22 FOR AY 2018-19 PRODUCED AS ANNEXURE-F2 FROM STORED ELECTRONIC RECORD OF IT DEPARTMENT OFFICIAL WEBSITE ON THE INTERNET AND ETC.,

THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

Learned counsel for the petitioners has moved the matter seeking withdrawal of the petition to file separate petitions on separate prayers.

Reserving such liberty as indicated in the memo, the petition stands disposed off as withdrawn.

Sd/- (M.NAGAPRASANNA) JUDGE

VNP / CT: ASC List No.: 2 Sl No.: 1

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