Davies Manuelaged 57 Yearskannimari, Palakkad, Pin v. Menonmeera V.menonr.sreejithk.krishnaparvathy Menon

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGHFRIDAY, THE 2 DAY OF FEBRUARY 2024 / 13TH MAGHA, 1945 WP(C) NO. 943 OF 2024 PETITIONER: DAVIES MANUELAGED 57 YEARSKANNIMARI, PALAKKAD, PIN - 678534BY ADVS.HARISANKAR V. MENONMEERA V.MENONR.SREEJITHK.KRISHNAPARVATHY MENON KOLADY HOUSE, PERUMATTY, RESPONDENT: INCOME TAX OFFICERWARD-2 PALAKKAD, AYAKAR BHAWAN, ENGLISH CHURCH ROADPALAKKAD, PIN - 678534BY ADVS.ADV. P.G. JAYASHANKAR PGJKEERTHIVAS GIRI OTHER PRESENT: P.G. JAYASHANKAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSIONON 02.02.2024, THE COURT ON THE SAME DAY DELIVERED THEFOLLOWING: JUDGMENT Dated this the 2[nd] day of February, 2024 The petitioner is an individual assessee under theprovisions of the Income Tax Act, 1961,(hereinafterreferred to as ‘I.T Act of 1961’). The petitioner/assesseedid not file return of his income for the assessment year2016-17. The petitioner’s case was selected for ascrutiny inasmuch as according to the assessmentofficer, the petitioner had deposited more thanRs.50,00,000/- cash in his two bank accounts and in theestimation of the assessing officer the said income of thepetitioner had escaped assessment under the provisionsof the I.T Act, 1961. Therefore, the petitioner’s case wasre-opened under Section 147 of the I.T Act, 1961. Thepetitioner was issued a notice under Section148A(b) on17.03.2023, to which the petitioner had submitted replyon 23.03.2023, and after affording an opportunity ofhearing, an order under Section 148A(d) came to bepassed on 28.03.2023. Thereafter, notice under Section148 has been issued asking the petitioner to file hisreturns. 2.Learned counsel for the petitioner submitsthat normal limitation period for re-opening theassessment under Section 149(1)(a) of the IT Act, isthree years. However, it may extend to ten years if theescaped income is more than Rs.50,00,000/-. He submitsthat the petitioner’s income is not more thanRs.50,00,000/- which has escaped asssessment.Therefore, the proceedings initiated under Section 148Aof the IT Act are barred by limitation, and therefore,without jurisdiction. 3.Sri.P.G Jayashankar, learned Senior StandingCounsel for the Income Tax Department submits that inthe two bank accounts of the petitioner, there has been acash deposit of around Rs.76,00,000/-. The petitioner didnot file return of his income under Section 139 of the IT Act, and therefore, the assessing authority rightlyconsidered that this income to have escaped assessmentunder the provisions of the IT Act, 1961. The case hasbeen re-opened after 3 years which is as per the statute. 4.The question whether the petitioner’sexplanation for the cash amount deposited in two bank AP accounts is correct or otherwise a question which can beconsidered only when the petitioner files the return inpursuance to the notice issued under Section 148 of theIT Act, 1961. At the initial stage of enquiry of re-openingthe assessment under Section 148A, the assessingauthority has to satisfy itself that whether the income ofthe petitioner has escaped assessment and if the 3 yearsperiod has elapsed from the last date of relevantassessment year, whether the income which has escapedassessment is more than Rs.50,00,000/-. In the presentcase, income escaped assessment is allegedly more thanRs.50,00,000/- and therefore, the limitation period of 3years provided under Section 149 (1)(a) has noapplicability in the facts of the present case. In view thereof, I find no substance in this writpetition. Therefore, the present writ petition is herebydismissed. Sd/- DINESH KUMAR SINGHJUDGE APPENDIX OF WP(C) 943/2024 PETITIONER EXHIBITSExhibit P1 Exhibit P2 Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 In view thereof, I find no substance in this writpetition. Therefore, the present writ petition is herebydismissed. Sd/- DINESH KUMAR SINGHJUDGE APPENDIX OF WP(C) 943/2024 PETITIONER EXHIBITSExhibit P1 Exhibit P2 Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 COPY OF NOTICE ISSUED BY THE RESPONDENT DTD. 23-02-2023COPY OF REPLY FILED BY THE PETITIONER BEFORE THE RESPODNENT DTD. 15-03-2023COPY OF NOTICE ISSUED BY THE RESPONDENT DTD. 17-03-2023 COPY OF REPLY FILED BY THE PETITIONER BEFORE THE RESPONDENT DTD. 23-03-2023COPY OF ORDER ISSUED BY THE RESPONDENT DTD. 28-03-2023 COPY OF NOTICE ISSUED BY THE RESPONDENT DTD. 28-03-2023