Wp/9438/2025 Of T Lokesh v. Principle Director Of Income Tax

NC: 2025:KHC:14678WP No. 9438 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4 DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR -WRIT PETITION NO. 9438 OF 2025 (TRES)BETWEEN: T LOKESH, S/O T HARINATHA REDDY AGED ABOUT 47 YEARS, 68A/A, MIG-2, GROUP-3 KHB COLONY, HOOTAGALLI, MYSORE- 570 018. …PETITIONER (BY SRI. VIKRAM A HUILGOL, SENIOR ADVOCATE FOR SRI.A MAHESH CHOWDHARY,ADVOCATE) AND:1. PRINCIPAL DIRECTOR OF INCOME TAX INVESTIGATION CENTRAL REVENUE BUILDING, ANNEXE NO.1 QUEENS ROAD, BENGALURU-560 001. Digitally signed by KORLAHALLI2. DEPUTY COMMISSIONER OF INCOME TAX BHARATHIDEVIKRISHNACHARYALocation: HIGH COURT OFKARNATAKABENAMI PROHIBITION UNIT CENTRAL REVENUE BUILDING, ANNEXE NO.1, QUEENS ROAD, BENGALURU-560 001. 3. ADJUDICATING AUTHORITY UNDER BENAMI ACT PARLIAMENT STREET NEW DELHI - 110 001. …RESPONDENTS (BY SRI.M DILIP, ADVOCATE) THIS W.P. IS FILED UNDER ARTICLEES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 29.09.2021 BEARING REF NO. 2097/2020 UNDER SECTION 26(3) OF THE BENAMI ACT, 1988 VIDE ANNEXURE-A ISSUED BY THE RESPONDENT NO.3 IS BEYOND JURISDICTION, ARBITRARY AND WITHOUT AUTHORITY OF LAW HENCE NULL AND VOID AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs: "(i) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the order dated 29.09.2021 bearing Ref No.2097/2020 under Section 26 of the Benami Act, 1988 vide Annexure A issued by the Respondent No.3 is beyond jurisdiction, arbitrary and without authority of law hence null and void; and (ii) Issue a writ of Certiorari or direction in the nature of a writ of certiorari quashing the show cause notice dated 12.02.2025 bearing no. ITBA/COM/F/17/2024-25/1073209182(1) under 3 of the Benami Act, 1988 vide Annexure B issued by the Respondent No.1 is beyond jurisdiction, arbitrary and without authority of law hence null and void. (iii) And pass such other orders as this Hon'ble Court deems fit and proper in the interest of justice and equity. 2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondents and perused the material on record. - 3 - 3. In addition to reiterating various contentions urged in the petition and referring to the material on record, learned Senior Counsel for the petitioner submits that aggrieved by the order dated 29.09.2021, passed under Section 26(3) of the Benami Transactions (Prohibition) Act, 1988, vide Annexure-A, the petitioner has preferred an Appeal No.1619/BNG/2021, which is pending before the Appellate Tribunal. It is submitted that despite pendency of the said proceedings before the Appellate Tribunal, which is seized of the subject matter of the proceedings, the respondents have proceeded to issue the impugned show cause notice dated 12.02.2025 invoking Section 3 of the Benami Transactions (Prohibition) Act, vide Annexure-B and as such, the petitioner is before this Court by way of present petition. 4. Per contra, learned counsel for the respondents submits that, while there is no legal bar/embargo for the respondents to issue separate notice under Section 3 of the Benami Transactions (Prohibition) Act, despite pendency of the appeal. It is however submitted that the present petition may be disposed of, by directing the Appellate Tribunal to dispose of the appeal within a stipulated time frame. 4. Per contra, learned counsel for the respondents submits that, while there is no legal bar/embargo for the respondents to issue separate notice under Section 3 of the Benami Transactions (Prohibition) Act, despite pendency of the appeal. It is however submitted that the present petition may be disposed of, by directing the Appellate Tribunal to dispose of the appeal within a stipulated time frame. 5. In view of the aforesaid facts and circumstances of the case and undisputed fact that the appeal filed by the petitioner against the order dated 29.09.2021 is pending before the Appellate Tribunal, without expressing any opinion on the merits/demerits of the rival contentions, I deem it just and appropriate to dispose of the petition by directing the Appellate Tribunal to dispose of the appeal filed by the petitioner within a period of six weeks from the date of receipt of copy of this order. 6. In the result, pass the following: ORDER (i) The Petition is hereby disposed of. (ii) The Appellate Tribunal is directed to dispose of Appeal No.1619/BNG/2021, filed by the petitioner within a period of six weeks from the date of receipt of copy of this order. (iii) It is further directed that, till disposal of the appeal by the Appellate Tribunal as stated supra, the impugned show cause notice dated 12.02.2025, vide Annexure-B shall remain in abeyance. - 5 - NC: 2025:KHC:14678 WP No. 9438 of 2025 All contentions of the parties are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE BK List No.: 1 Sl No.: 33