Wp/26161/2023 Of Smt. Tejal Milan Parikh v. The Deputy Commissioner Of Income Tax

Digitallysigned byNARASIMHAMURTHYVANAMALALocation:HIGHCOURT OFKARNATAKA C/W WP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21 DAY OF DECEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD -WRIT PETITION NO. 26161/2023 (TIT) C/W -WRIT PETITION NO. 26430/2023 (TIT), -WRIT PETITION NO. 26500/2023 (TIT), -WRIT PETITION NO. 26268/2023 (TIT) IN WP NO. 26161/2023 BETWEEN: SMT. TEJAL MILAN PARIKH AGED ABOUT 43 YEARS, LEGAL HEIR OF LATE MILAN M PARIKH, RESIDING AT NO. 1081/31, 1 FLOOR, GOLDEN BLOSSOM, 18 A MAIN, 5 BLOCK, RAJAJINAGAR, BANGALORE-560 010. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, ADVOCATES FOR SRI. R. RAMA MURTHY., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SHARADHA BUILDING, SARAF COLONY, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590 006. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF EX-PARTY ASSESSMENT MADE FOR THE ASSESSMENT YEAR 2018-19 ON 7.06.2021 U/S 153C RWS 144 OF THE ACT VIDE DIN ITBA/AST/S/153C/2021-22/1033302304(1) ANNX-D. IN WP NO. 26430/2023 BETWEEN: SMT. TEJAL MILAN PARIKH AGED ABOUT 43 YEARS, LEGAL HEIR OF LATE MILAN M PARIKH, RESIDING AT NO. 1081/31, 1 FLOOR, GOLDEN BLOSSOM, 18 A MAIN, 5 BLOCK, RAJAJINAGAR, BANGALORE-560 010. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, ADVOCATES FOR SRI. R. RAMA MURTHY., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SHARADHA BUILDING, SARAF COLONY, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590 006. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF EX-PARTY ASSESSMENT MADE FOR THE ASSESSMENT YEAR 2017-18 ON 7.06.2021 U/S NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 153C RWS 144 OF THE ACT VIDE DIN ITBA/AST/S/153C/2021-22/1033297967 (1) ANNX-E. IN WP NO. 26500/2023 BETWEEN: SMT. TEJAL MILAN PARIKH AGED ABOUT 43 YEARS, LEGAL HEIR OF LATE MILAN M PARIKH, RESIDING AT NO. 1081/31, 1 FLOOR, GOLDEN BLOSSOM, 18 A MAIN, 5 BLOCK, RAJAJINAGAR, BANGALORE-560 010. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, ADVOCATES FOR SRI. R. RAMA MURTHY., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SHARADHA BUILDING, SARAF COLONY, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590 006. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF EX-PARTY ASSESSMENT MADE FOR THE ASSESSMENT YEAR 2016-17 ON 4.06.2021 U/S 153C RWS 144 OF THE ACT VIDE DIN ITBA/AST/S/153C/2021-22/1033281327 (1) ANNX-D. C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 IN WP NO. 26268/2023 BETWEEN: SMT. TEJAL MILAN PARIKH AGED ABOUT 43 YEARS, LEGAL HEIR OF LATE MILAN M PARIKH, RESIDING AT NO. 1081/31, 1 FLOOR, GOLDEN BLOSSOM, 18 A MAIN, 5 BLOCK, RAJAJINAGAR, BANGALORE-560 010. …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, ADVOCATES FOR SRI. R. RAMA MURTHY., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SHARADHA BUILDING, SARAF COLONY, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590 006. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF EX-PARTY ASSESSMENT MADE FOR THE ASSESSMENT YEAR 2014-15 ON 22.06.2021 U/S 153C RWS 144 OF THE ACT VIDE DIN ITBA/AST/S/153C/2021-22/1033600983 (1) ANNX-E. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: NC: 2023:KHC:46748WP No. 26161/ 2023 …PETITIONER (BY SRI. R. CHANDRASHEKAR AND SRI. KASHINATH KALMATH, ADVOCATES FOR SRI. R. RAMA MURTHY., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE, SHARADHA BUILDING, SARAF COLONY, KHANAPUR ROAD, TILAKWADI, BELAGAVI-590 006. …RESPONDENT (BY SRI.M. DILIP., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER OF EX-PARTY ASSESSMENT MADE FOR THE ASSESSMENT YEAR 2014-15 ON 22.06.2021 U/S 153C RWS 144 OF THE ACT VIDE DIN ITBA/AST/S/153C/2021-22/1033600983 (1) ANNX-E. THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 ORDER These petitions are filed by Sri Milan M. Parikh’s wife as his Class – I legal heir. The petitioner has impugned the different assessment orders under Section 153C read with Section 144 of the Income Tax Act, 1961 [for short, ‘the IT Act’]. The details of the impugned Assessment Orders in these writ petitions are as follows: NC: 2023:KHC:46748WP No. 26161/ 2023 C/W WP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 2.It is undisputed that, on 28.04.2018, a search was conducted on Sri Nasiruddin P. Baghwan and notice under Section 153C of the IT Act is issued on Sri Milan N. Parikh on 09.02.2021. This notice is followed by the notice under Section 142(1) of the IT Act and the impugned ex-parte Assessment Orders under Section 144 of the IT Act on 15.03.2021, 04.06.2021/ 07.06.2021/ 22.06.2021 respectively. However, Sri Milan M. Parikh has died before completion of the assessment proceedings on 08.05.2021. The petitioner’s grievance essentially is because the assessment proceedings are completed without bringing the petitioner on record as the legal heirs of the deceased Milan M. Parikh and as such, the impugned Assessment Orders are in violation of the principles of natural justice. 3.Sri R. Chandrashekar, the learned counsel for the petitioner, and Sri M. Dilip, the NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 learned counsel for the respondent, are heard for final disposal of the petition in the light of the aforesaid circumstances. Sri Chandrashekar, while reiterating the petitioner’s grievance in the light of the circumstances as aforesaid, also submits that the petitioner is entitled to dispute the very assumption of jurisdiction to issue notice under Section 153C of the IT Act because the petitioner is categorical that initiation of proceedings is not because of a search on Sri Milan M. Parikh. 4.In response, Sri M Dilip submits that his instructions are that there was no search on Sri.Milan M. Parikh, but Sri Milan M. Parikh’s premise was also searched as part of search on Sri.Nasiruddin P. Baghwan, and therefore, issuance of notice under Section 153C of the IT Act to assume jurisdiction for the assessment is justified. Sri. M. Dilip also submits that this aspect could be left open - 9 - NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 to be considered with due opportunity to the petitioner as the respondent cannot controvert that the assessment proceedings are completed without the petitioner being brought on record upon the demise of Sri Milan M. Parikh on 08.05.2021. In the light of these submissions, the following: ORDER a)The petitions are allowed in part and the impugned Assessment Orders are quashed. the impugned Assessment Orders are quashed. b)The proceedings are restored to the stage of the notice under Section 142(1) stage of the notice under Section 142(1) of the IT Act with liberty to the petitioner to file appropriate reply with necessary documents. petitioner to file appropriate reply with necessary documents. NC: 2023:KHC:46748WP No. 26161/ 2023 C/WWP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 to be considered with due opportunity to the petitioner as the respondent cannot controvert that the assessment proceedings are completed without the petitioner being brought on record upon the demise of Sri Milan M. Parikh on 08.05.2021. In the light of these submissions, the following: ORDER a)The petitions are allowed in part and the impugned Assessment Orders are quashed. the impugned Assessment Orders are quashed. b)The proceedings are restored to the stage of the notice under Section 142(1) stage of the notice under Section 142(1) of the IT Act with liberty to the petitioner to file appropriate reply with necessary documents. petitioner to file appropriate reply with necessary documents. c)The petitioner shall be at liberty to file their reply with necessary documents their reply with necessary documents SA ct:sr - 10 - NC: 2023:KHC:46748WP No. 26161/ 2023 C/W WP No. 26430/2023,WP No. 26500/2023,WP No. 26268/2023 with the respondent on or before 29.02.2024. Sd/- JUDGE