Wp/15440/2015 Of Mr Syed Yaseen v. The Income Tax Officer

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4 DAY OF JUNE, 2015. BEFORE THE HON BLE MRS.JUSTICE B.V.NAGARATHNA| WRIT PETITION NOs.15440,42/2015 (TmIT) BETWEEN: Mr SYED YASEEN,SINCE DECEASEDREP. BY HIS LRS. 1. MRS SALMA YASEEN,W/O LATE SYED YASEEN,|AGED 40 YEARS, 2. MISS SARAH YASEEN,D/O LATE SYED YASEEN,AGED 18 YEARS, © 3. MISS SOBIYA YASEEN,|D/O LATE SYED YASEEN,AGED 16 YEARS, SINCE MINOR REP. BYNATURAL GUARDIAN-HER MOTHER,MRS SALMA YASEEN. ALL ARE R/AT NO.65,GROUND FLOOR,$ BENSON CROSS,BENSON TOWN,NANDIDURGA ROAD, BANGALORE-560 046. ... PETITIONERS (BY SRI: M.V.SESHACHALA, SR. COUNSEL FOR|SRI.ARAVIND.V.CHAVAN, ADV.) AND: 1.THE INCOME TAX OFFICER,WARD-8(1), JEEVAN SAMPIGE, SAMPIGE ROAD, MALLESHWARAM,BANGALORE-560 003.) 2.1HE TAX RECOVERY OFFICER,RANGE-8, JEEVAN SAMPIGE,SAMPIGE ROAD, MALLESHWARAM,BANGALORE-560 OO3.. 3.COMMISSIONER OF INCOME TAX-IV,C.R.BUILDING, QUEENS ROAD,BANGALORE-560 OOL. .. RESPONDENTS (BY SRI: JEEVAN.J.NEERALGI, STANDING COUNSEL) KK KKK THESE WRIT PETITIONS ARE FILED UNDER ARTICLES226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TODIRECTTHE.R-2)TO|CONSIDER.THE|REPRESENTATION.DTD.13.11.2014 ANNEX-F SUBMITTED BY THE PETITIONER FOR)SETTING ASIDE THE SALE PROCLAMATION DID.23.1.72014ANNEX-CG AND THE CERTIFICATE OF SALE DTD.13.3.2014ANNEX-D. THESEPETITIONS|COMINGON.FOR.PRELIMINARYHEARING IN ~B’ GROUP THIS’ DAY, COURT MADE THEFOLLOWING:-_ ORDER Petitioners are the Legal Representatives of oneSyed Yaseen. They have sought a direction to the second|respondentCOCONSIder|tne irrepresentationdated13/11/2014 (Annexure “F”), seeking setting aside of the|sale proclamation dated 23/01/2014 (Annexure “C”) and)Certificate of Sale dated 13/03/2014 (Annexure “D”"). 2. Briefly stated, the facts are that the deceasedpetitioner Syed Yaseen was an assesee. He died on.22/03/2014 leaving behind nis widow and two daughters. In respect of the Assessment Year 2007-08, he had filednis return of income. Assessment was completed and the.Assessing Autnority initiated proceedings, proposing to)impose penalty under Section 271 (1) (c) of the Income,Tax Act, 1961 [hereinafter, referred to as “the Act”, for the sake of brevity], on the premise that the assessee nad)concealed certain particulars of income and had furnishedinaccurate income. Tne Assessing Authority imposed)penalty of Rs.45,00,790/- by order dated 19/06/2009, a)copy of which is produced as Annexure “A”. The Assessing.Officer thereafter, raised a demand under Section 166 of tne Act, by issuing notice dated 19/06/2009. The demand,of Rs.45,00,790/- pius interest for pelated payment of)penalty was quantified as arrears of Rs.64,36,130/-. TheTax Recovery Officer initiated proceedings to recover the)said amount and issued a proclamation of sale ofimmovable property bearing No.65, Ground Floor, 3[ra]Cross, Benson Town, Bengaluru, which was owned by)deceased assessee. | ‘3.In the meanwhile, the order imposing penaltywas assailed by the assessee by way of statutory appeal|and the said appeal was allowed. However by then,| ‘3.In the meanwhile, the order imposing penaltywas assailed by the assessee by way of statutory appeal|and the said appeal was allowed. However by then,| auction of the aforesaid property had taken place and theAssessing Officer had purchased the said property for a)sum of Rs.1,23,75,100/- on behalf of the Department.Being.aggrievedDY.thesaleproceedings,LegalRepresentatives of the deceased had filed W.P.No.1/721618/2014, contending that the sale of immovable propertyduring the pendency of the statutory appeal was contraryto the provisions of tne Act. This Court, by order dated06/08/2014, directed that the appeal pending before the.Appellate Commissioner be disposed within a period of two.montns from the date of the said order. The Appellate|Commissioner has allowed the appeal by order dated)16/10/2014 (Annexure “E”) and has set aside the order oftne Assessing Authority, levying penalty. It is under these)circumstancesthatthepetitioners.have|madearepresentation to the second respondent for setting asidethe sale proceedings and for removal of the attachment of|the aforesaid property. 4. The grievance of the petitioners is that the saidrepresentation has not yet Deen considered by the second)respondent. 5. |. have heard learned senior counsel for the|petitioners and learned counsel for the respondent — Department and perused tne material on record. Having|regard to the aforesaid facts and considering tne fact that)the respondent — Department has not yet considered the)representation made by the petitioners and also taking.note of the fact that the Appellate Commissioner has held.in favour of the deceased assessee, a direction is issued to the second respondent to consider the representation|dated 13/11/2014 (Annexure “F’) in accordance witn law)and in an expeditious manner, within a period of four)weeks from the date of the receipt of a certified copy oftnis order. 6. With the aforesaid observations and directions,writ petitions are disposed. Sd/-| JUDGE. |*IMVS