Rangaraju Rani v. The Income-Tax Officer Non-Corp Ward 10 (3) Che

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 19.10.2024 CORAM THE HON'BLE MR JUSTICE C. SARAVANAN W.P.Nos.9640 & 26162 of 2022 andW.M.P.Nos.25254, 25255, 9385 & 9387 of 2022 Rangaraju Rani ...Petitioner in both WPs. Vs. 1.The Income-Tax Officer Non-Corp Ward 10 (3) CHE Room No.617, Sixth Floor, Chennai Wanapathy Block, Block No.121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 2.The Income Tax Officer, Office of the Principal Chief Commissioner of Income Tax, (NAFAC) National Faceless Assessment Centre, Delhi – 110 003. ...Respondent in both WPs. Prayer in WP.No.9640 of 2022:Writ Petition filed under Article 226 of the Constitution of India, to issue a writ of certiorarified Mandamus calling for the records comprised in the impugned order in bearing DIN ITBA/AST/S/147/2021-22/1042112040(1) for AY 2014-15 dated 30.03.2022 issued under Section 147 of the Income Tax Act, 1961 on the file of the second respondent, quash the same and consequently direct the second respondent to W.P.Nos.9640 & 26162 of 2022 furnish the document evidence to substantiate the amount added to the total income in a fair and proper manner by affording an opportunity of personal hearing to the petitioner before passing final order. Prayer in WP.No.26162 of 2022:Writ Petition filed under Article 226 of the Constitution of India, to issue a writ of certiorari calling for the records comprised in the impugned order in bearing DIN ITBA/REC/S/154-1/2022-23/1045336682(1) dated 08.09.2022 issued under Section 154 of the Income Tax Act, 1961 on the file of the first respondent, quash the same. For Petitioner:Mr.K.MageshFor Respondents:Mr.V.MahalingamSr.Standing Counsel C O M M O N O R D E R Heard Mr.K.Magesh, learned counsel for the petitioner and Mr.V.Mahalingam, learned Sr.Standing Counsel for the respondents. 2. By this Common order, both these writ petitions are being disposed of. 3. The petitioner has challenged the impugned order passed by the Assessing Officer under Section 147 r.w.s Section 144 of the Income Tax Act, 1961 (in short 'Act') for the assessment year 2014-15. 4. By the impugned order, the petitioner was assessed to a total income of 2/7 W.P.Nos.9640 & 26162 of 2022 Rs.3,30,38,360/-. The order was challenged by the petitioner in WP.No.9640 of 2022. The petitioner had secured an interim order from this Court on 19.04.2022. 5. The impugned order dated 23.12.2021 indicates that it refers to deposit of Rs.26,01,000/- from the savings account maintained by the petitioner jointly along with her deceased husband. 6. That apart, a sum of Rs.3,26,18,900/- was added to the taxable income of the petitioner over and above an income of Rs.4,19,460/- was added based on the information gathered in the Non Filers Monitoring System (NMS). 7. During the pendency of WP.No.9640 of 2022, the department suo-motu revised the aforesaid order dated 30.03.2022 under Section 154 r.w.s Section 147 of the Act, by deleting the unexplained income of Rs.3,26,18,900/- and has added a sum of Rs.26,01,000/- under Section 69 A of the Act as explained income. 8. The rectification order dated 08.09.2022 has been passed during the pendency of W.P.No.9640 of 2022 which is challenge in W.P.No.26162 of 3/7 W.P.Nos.9640 & 26162 of 2022 2022. Prima-facie, there are indicators that the aforesaid amount was transferred from pre-closure of a Fixed Deposit made in the name of the petitioner's husband namely late Shri Mr.K.Rangaraju, who had saved the amount from his retiral benefits, which is evident from the Bank Statement filed before this Court on 26.10.2021 for the period between 1[st] of April 2013 to 31[st] August 2013. 9. Considering the same, the WP.No.9640 of 2022 is closed, as the order passed on 30.03.2023 stands rectified by the order dated 08.09.2022. 8. The rectification order dated 08.09.2022 has been passed during the pendency of W.P.No.9640 of 2022 which is challenge in W.P.No.26162 of 3/7 W.P.Nos.9640 & 26162 of 2022 2022. Prima-facie, there are indicators that the aforesaid amount was transferred from pre-closure of a Fixed Deposit made in the name of the petitioner's husband namely late Shri Mr.K.Rangaraju, who had saved the amount from his retiral benefits, which is evident from the Bank Statement filed before this Court on 26.10.2021 for the period between 1[st] of April 2013 to 31[st] August 2013. 9. Considering the same, the WP.No.9640 of 2022 is closed, as the order passed on 30.03.2023 stands rectified by the order dated 08.09.2022. 10. As far as, the impugned rectification order dated 08.09.2022 impugned in WP.No.26162 of 2022 is concerned, the said rectification order dated 08.09.2022 has been passed without giving an adequate opportunity to the petitioner. Prima-facie facts indicate that the details of income gathered from the Bank account of the petitioner is not a new information from the account of the petitioner. 11. Therefore, Court is inclined to set aside the impugned order dated 08.09.2022 and remits the case back to the 1[st] respondent and pass fresh order insofar as addition of Rs.26,01,000/- to the total income of the petitioner. It is made clear that before passing of the final order, the petitioner shall be heard if 4/7 W.P.Nos.9640 & 26162 of 2022 the petitioner desires. 12.The dispute pertains to the Assessment Year 2014-15, it is expected that the respondent will pass fresh order as expeditiously as possible preferably within a period of six (6) months from the date of receipt of copy of this order. This writ petition stands allowed. No costs. Connected Miscellaneous Petitions are closed. Index: Yes/NoSpeaking Order/Non-Speaking OrderNeutral Citation Case:Yes/No nst 19.10.2024 To: 5/7 W.P.Nos.9640 & 26162 of 2022 1.The Income-Tax Officer Non-Corp Ward 10 (3) CHE Room No.617, Sixth Floor, Chennai Wanapathy Block, Block No.121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. Block No.121, Mahatma Gandhi Road, Nungambakkam, Chennai – 600 034. 2.The Income Tax Officer, Office of the Principal Chief Commissioner of Income Tax, (NAFAC) National Faceless Assessment Centre, Delhi – 110 003. C.SARAVANAN, J. nst W.P.Nos.9640 & 26162 of 2022 W.P.Nos.9640 & 26162 of 2022andW.M.P.Nos.25254, 25255, 9385 & 9387 of 2022 19.10.2024 7/7