AMITH BETHALA (HUF) vs. INCOME TAX OFFICER

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WP/12308/2015HC KarnatakaKAHC01024263201514 August 2015Bench: RAM MOHAN REDDY4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court found a violation of natural justice as the petitioner was not provided with copies of the statements forming the basis of the reassessment. The reassessment order was deemed illegal and unsustainable.

What were the facts?

The petitioner filed a return of income which was initially accepted. However, the assessment was reopened under Section 147 based on statements from certain individuals alleging payments to the petitioner. The petitioner claims the reassessment order was passed without an opportunity to be heard regarding these statements.

What were the issues?

Whether the reassessment order passed without providing the petitioner with copies of statements and an opportunity to be heard violates principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU

DATED THIS THE 14TH DAY OF AUGUST, 2015

BEFORE

THE HON'BLE MR. JUSTICE RAM MOHAN REDDY

WRIT PETITION NO. 12308 OF 2015 (T-IT)

BETWEEN:

AMITH BETHALA (HUF) NO.815, 8TH BLCOK KORAMANGALA BANGALORE 560095

REPRESENTED BY ITS KARTA - MR AMITH BETHALA S/O PRAKASH BETHALA AGED ABOUT 37 YEARS ... PETITIONER

(By Sri. HARISH V.S, & SRI. VINAY V. ADVS.,)

AND

INCOME TAX OFFICER WARD-7(1), 4TH FLOOR C WING, KENDRIYA SADAN 2ND BLOCK, KORAMANGALA BANGALORE – 560 034. ... RESPONDENT

(By Sri. JEEVAN J NEERALGI, ADV.,)

2 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE CONSEQUENTIAL NOTICE OF DEMAND ISSUED BY THE RESPONDENT DATED 31.7.2014 FOR THE ASSESSMENT YEAR 2007-08 VIDE ANN-D AND IMPUGNED ASSESSMENT ORDER PASSED BY THE RESPONDENT U/S 143[3] R.W. SECTION 147 OF THE INCOME TAX ACT 1961 DATED 28.7.2014 FOR THE ASSESSMENT YEAR 2007-08 VIDE ANN-E & ETC.,

THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

O R D E R

According to learned counsel for petitioner, having filed return of income for the assessment year 2007-08, though accepted, the assessing authority reopened the assessment by issuing notice under Section 148 of the Income Tax Act (for short the ‘Act’), on the premise that certain persons made statements of certain monies having been paid to the petitioner which were not accounted for in their return for the said assessment year. It is the allegation of the petitioner that proceeding of re-assessment order when concluded

3 and passed was without extending an opportunity of hearing to the petitioner over the alleged statements made by certain persons. The allegation is not seriously controverted by the Revenue.

3.

Undoubtedly, violation of principles of natural justice is palpable since a copy of the statement of person the basis for the notice under Section 148 of the Act, is not made available to the petitioner.

4.

Suffice it to state that the proceeding culminating in the reassessment order, impugned, without notice to the petitioner over the statement of certain persons, is illegal and cannot be sustained.

5.

Petition is accordingly allowed. Impugned reassessment order is quashed. Liberty is reserved to the assessing authority to issue notice to the petitioner, furnish copies of the statements, the basis of such notices, and extend reasonable opportunity of hearing

4 to the petitioner and thereafterwarads pass orders in accordance with law. Since parties are represented by learned counsel, are directed to be present before the assessing officer on 21st September 2015 at 3.00 p.m. without further notice.

Sd/- JUDGE

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