MS. SEEMA SIBBAL vs. DEPUTY COMMISSIONER OF INCOME TAX

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WP/27414/2015HC KarnatakaKAHC01033528201514 July 2015Bench: RAM MOHAN REDDY4 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the reassessment order was illegal as it violated the principles of natural justice. The petitioner was not given a copy of the statements forming the basis of the reassessment notice, nor was a hearing provided.

What were the facts?

The petitioner's assessment for AY 2009-10 was reopened based on statements from third parties alleging payments to the petitioner. The petitioner claims the reassessment order was passed without providing an opportunity to be heard or access to these statements.

What were the issues?

Whether the reassessment order passed without providing the petitioner with copies of third-party statements and without a hearing violated principles of natural justice.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU

DATED THIS THE 14TH DAY OF JULY, 2015

BEFORE

THE HON'BLE MR. JUSTICE RAM MOHAN REDDY

WRIT PETITION NO. 27414 OF 2015 (T-IT)

BETWEEN:

MS. SEEMA SIBBAL W/O DR. K.W GOPINATH AGED ABOUT 59 YEARS RESIDING AT: NO. 203, ATHENS-1 PRESTIGE ACROPOLIS HOSUR ROAD, KOAMANAGALA BANGALORE – 560 002. ... PETITIONER

(By Sri. HARISH V.S., ADV.,)

AND

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4 (3) (1) BANGALORE – 560 032. ... RESPONDENT

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

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ASSESSMENT ORDER PASSED BY THE RESONDENT U/S.143 (3)

2 R.W. SECTION 147 OF THE ASSESSMENT YEAR 2009- 10 I.E. ANNEX-G AND CONSEQUENTIAL NOTICE OF DEMAND ISSUED BY THE RESPONDENT IN FORM ITS-7 DATED 20.03.2015 FOR THE ASSESSMENT YEAR 2009-10 I.E. ANNEX-H & ETC.,

THIS WRIT PETITION COMING ON FOR PRLY. HEARING IN ‘B’ GROUP 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 2009-10, 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 and passed was without extending an opportunity of hearing to the petitioner over the alleged statements made

3 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 to the petitioner and thereafterwarads pass orders in accordance with law.

4 Since parties are represented by learned counsel, are directed to be present before the assessing officer on 6th August 2015 at 3.00 p.m. without further notice.

Sd/- JUDGE

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