Wp/34136/2018 Of Charu K.bagadia v. Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MR.JUSTICE S.M. SUBRAMANIAM W.P.No.34136 of 2018and W.M.P.Nos.39667 of 2018 & 6653 of 2019 Charu K. Bagadia,W/o.Ketan C. Bagadia..Petitioner-vs- 1.Assistant Commissioner of Income Tax-23(2), Mumbai, 104, 1[st] Floor, Matru Mandir, Tardeo Road, Mumbai-07. 2.Assistant Commissioner of Income Tax Corporate Circle – 4(2), Chennai, Room No.433, 4[th] Floor, Aayakar Bhavan, Main Building, 121, Nungambakkam High Road, Chennai-34...Respondents Petition filed under Article 226 of the Constitution ofIndia praying for issuance of Writ of Certiorari to call for therecords on the file of the respondents in PAN: inissuing the impugned notice under Section 148 of the Income TaxAct, 1961 dated 28.03.2018 by the 1[st] respondent as well as theconsequential notice under Section 143(2) read with Section 129of the Income Tax Act, 1961 dated 14.12.2018 issued by the 2[nd]respondent and quash the same as illegal, arbitrary and withoutjurisdiction. The notice issued under Section 148 of the Income Tax Act,1961 (hereinafter referred to as “the IT Act”), dated 28.03.2018by the first respondent as well the consequential notice issuedunder Section 143(2) read with Section 129 of the IT Act, dated14.12.2018 issued by the second respondent, are sought to bequashed in the present writ petition. https://hcservices.ecourts.gov.in/hcservices/ 2.The contention of the learned counsel for the writpetitioner is that the impugned notice under Section 148 of theIT Act dated 28.03.2018, issued by the first respondent,Assistant Commissioner of Income Tax, Circle 23(2), Mumbai iswithout any jurisdiction. 3.It is contended that the petitioner is an assessee atChennai and therefore, the notice issued by the incompetentauthority at Mumbai under Section 148 of the IT Act forreopening of an assessment is in violation of the provisions ofthe IT Act. 4.The learned counsel for the petitioner reiterated that onreceipt of the notice from the first respondent, the petitionersent a letter dated 26.04.2018 to the first respondent statingher Permanent Account Number and further stating that she isassessed by DCIT, Corporate Circle 4(2), Aaaykar Bhavan,M.G.Road, Nungambakkam, Chennai. Thus, a request is made todrop the proposal to assess/re-assess the income for theassessment year 2011-12. However, the second respondent,Assistant Commissioner of Income Tax, Corporate Circle-4(2),Chennai subsequently issued a notice under Section 143(2) readwith Section 129 of the IT Act in proceedings dated 14.12.2018and thereafter, issued another proceedings dated 14.12.2018directing the petitioner to file return of income for theassessment year 2011-12 in response to the notice under Section148 of the IT Act dated 28.03.2018, electronically and submit acopy of the same to the second respondent on or before20.12.2018. 5.The learned Senior Standing Counsel appearing on behalf ofthe respondents made a submission that the first respondent atMumbai had issued the original order reopening the assessmentunder Section 148 of the IT Act in proceedings dated 28.03.2018based on the investigation conducted and it is contended thatthe property belongs to the petitioner situate at Mumbai and bycollecting details regarding the immovable of the petitioner atMumbai, the authority at Mumbai issued a notice under Section148 of the IT Act. Subsequently, they came to understand thatthe petitioner is assessed at Chennai. Thus, the entire filespertaining to the investigation and the initiation ofproceedings under Section 147 of the IT Act were transferred tothe authority at Chennai, who in turn, commenced the proceedingsby issuing notices on 14.12.2018. Thus, there is noirregularity or infirmity as such and it is only a continuationof proceedings and the petitioner has to submit her objectionsin respect of the notice issued under Section 148 of the IT Act. https://hcservices.ecourts.gov.in/hcservices/ 6.Sections 147 and 148 of the IT Act indicate that theinitiation must be done by the Assessing Officer. In the caseof the petitioner, the Assessing Officer is at Chennai. Thus,the order initially issued by the first respondent, thoughimproper, need not be set aside in view of the fact that thesaid proceedings were subsequently transferred to the Income TaxAuthorities at Chennai. The first respondent has notadjudicated the issues, nor conducted any enquiry. However, thefirst respondent conducted certain investigation and identifiedthe immovable properties belong to the petitioner situate atMumbai. All the files are now transferred to the authority atChennai, who in turn issued notices on 14.12.2018 directing thepetitioner to file the return of income for the assessment year2011-12, in response to the notice issued under Section 148 ofthe IT Act, dated 28.03.2018. Though the second respondent hascommenced the proceedings by issuing letters dated 14.12.2018,the petitioner is no way prejudiced and she has to avail anopportunity by submitting her objections and by following theprocedures contemplated under the IT Act. 7.In view of the fact that the entire proceedings initiatedby the first respondent has already been transferred to theauthority at Chennai, no prejudice is caused to the petitionerand she is at liberty to defend her case in the manner known tolaw and by filing objections and an opportunity be provided tothe petitioner as prescribed. 8.With the above observations, this writ petition standsdismissed. No costs. Consequently, connected miscellaneouspetitions are closed. Sd/- Assistant Registrar(CS III) //True Copy// Sub Assistant Registrar abr To 1.Assistant Commissioner of Income Tax-23(2), Mumbai, 104, 1[st] Floor, Matru Mandir, Tardeo Road, Mumbai-07. 2.Assistant Commissioner of Income Tax Corporate Circle – 4(2), Chennai, Room No.433, 4[th] Floor, Aayakar Bhavan, Main Building, 121, Nungambakkam High Road, Chennai-34. Corporate Circle – 4(2), Chennai, Room No.433, 4[th] Floor, Aayakar Bhavan, Main Building, 121, Nungambakkam High Road, Chennai-34. +1 cc to Mr.Hema Muralikrishnan,Advocate Sr.No.23210 W.P.No.34136 of 2018 SR II(CO)KKV/21/06/2021