Kalpita Arun Lanjekar v. Income Tax Officer, Ward-28(2)(1) & Ors

1/4 428-aswp-5966-2023.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAYCIVIL APPELLATE JURISDICTION WRIT PETITION NO. 5966 OF 2023 Kalpita Arun LanjekarVersusIncome Tax Officer, Ward-28(2)(1) & Ors. …Petitioner …Respondents Mr. Govind Javeri for Petitioner. Mr. Arjun Gupta for Respondent Nos. 1 & 2-Revenue. PC:- CORAM:K. R. SHRIRAM &DR. NEELA GOKHALE, JJ.DATED:11[th] March 2024 1.Petitioner, a housewife who had no income and therefore, wasnot filing any income tax return, received a notice dated 19[th]February 2023 from Respondent No. 1, the Income Tax Officer, Ward-28(2)(1) under Section 148A(b) of the Income Tax Act, 1961 (“theAct”). In the notice it is stated that the officer has information whichsuggests that income chargeable to tax for Assessment Year 2016-2017 has escaped assessment. The details of information were alsomade available and it reads as under : “As per information received from “INSIGHTPORTAL” under Risk Management Strategy (RMS), youhave done high value transaction during the year underconsideration, however, on verification of the variousportals viz. ITBA, Insight, e-filing & CPC-2 portal, it isseen that no ITR has been filed by you for the A.Y.-2016-2017. Therefore, the case has been classified as “Non-filer cases under RMS Cycle for A.Y.-2016-2017”. Since,you have not filed return of income for A.Y.-2016-2017even though you have made huge transaction during F.Y.-2015-2016 for which information is already availableon portal, hence, enquiry is not required in your case. 2.The details of information description, source andnature of information, value/amount of transactionrelated to show-cause notice u/s 148A(b) of the IncomeTax Act is attached separately, and the same are asunder : 3.The above mentioned information suggest that theincome chargeable to tax has escaped assessment for theA.Y.-2016-2017. Therefore, you are hereby required toshow-cause as to why proceedings u/s 148 of the IncomeTax Act should not be initiated against you. Your replyshould be supported by following details/documents : i)Head-wise computation of income. ii)Details of purchase of immovable property duringF.Y.-2015-2016 supported with copy of registeredagreement with Index-II. iii)Details of payment made and source foracquisition of said immovable property supported withcopy of bank statement highlighting the transaction. iv)If the property was purchased jointly, pleasefurnish the details and source of all joint holders withsupporting documents and copy of return of incomefiled. v)Please specify the reason in detail as to why youhave not filed return of income for A.Y.-2016-2017 eventhough, you have taxable income during F.Y.-2015-2016. You may submit any other details you relied upon, asdeemed fit in support of your claim.” 2.Petitioner by a letter dated 28[th] February 2023 issued through Raju More & Associates, Chartered Accountants submitted that theproperty was purchased by her husband Mr. Pravin Patil and all the payments were made by him. Petitioner also explained that Petitioner’s name was included as a joint holder in the agreement forsale, but no payment has been made by Petitioner. Copy of theregistered agreement for the property, husband’s bank details etc.were made available. v)Please specify the reason in detail as to why youhave not filed return of income for A.Y.-2016-2017 eventhough, you have taxable income during F.Y.-2015-2016. You may submit any other details you relied upon, asdeemed fit in support of your claim.” 2.Petitioner by a letter dated 28[th] February 2023 issued through Raju More & Associates, Chartered Accountants submitted that theproperty was purchased by her husband Mr. Pravin Patil and all the payments were made by him. Petitioner also explained that Petitioner’s name was included as a joint holder in the agreement forsale, but no payment has been made by Petitioner. Copy of theregistered agreement for the property, husband’s bank details etc.were made available. 3.Notwithstanding the details and documents being provided,the impugned order dated 31[st] March 2023 under Section 148A(d) ofthe Act has been passed. It is stated in the order that the AssessingOfficer (“AO”) has examined whether assessment is needed and theexplanation and documents submitted by assessee do notconclusively preclude the suggestion based on the informationavailable that the income chargeable to tax has escaped assessment.The only basis on which the order has been passed is, the assesseehas not submitted the details of source of Rs. 88,75,000/- paid forpurchase of property by her husband, source and the details ofreceipt of amount from the relatives, whereas the husband’s incomeis only Rs. 18,49,980/-. 4.Though Mr. Gupta has strongly opposed the petition, but at theend he agreed that those details have to be sought from the husbandfor husband’s assessment and not from Petitioner herein because theAO has accepted that Petitioner has not made any payment forpurchase of property. GITALAXMIKRISHNAKOTAWADEKAR Digitally signed byGITALAXMI KRISHNAKOTAWADEKARDate: 2024.03.1310:44:00 +0545 5.We also have to notice that surprisingly the Principal ChiefCommissioner of Income Tax has also accorded sanction for issuanceof this order instead of directing the AO to drop the proceedingsagainst Petitioner. 6.In the circumstances, we hereby quash and set aside the orderdated 31[st] March 2023 passed under Section 148A(d) of the Act,because in our opinion, it is not a fit case for reopening theassessment in the case of Petitioner. 7.Petition disposed. (DR. NEELA GOKHALE, J.) (K. R. SHRIRAM, J.)