Wp(C)/44172/2023 Of Nalupurappattil Ahemmad v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 14 DAY OF FEBRUARY 2024 / 25TH MAGHA, 1945 WP(C) NO. 44172 OF 2023 PETITIONER: NALUPURAPPATTIL AHEMMAD, AGED 62 YEARS S/O.MOHAMMAD KUNHI E, AL-VAZEELA MANZIL, KADINHIMOOLA, THAIKADAPPURAM.P.O, NILESHWAR., PIN - 671314 BY ADV T.K.VIPINDAS RESPONDENTS: 1INCOME TAX OFFICER, WARD INT TAX, KOZHIKODE, PIN - 673001 2PRINCIPAL COMMISSIONER OF INCOME TAX, MANANCHIRA, KOZHIKODE, KERALA, PIN - 673001 3CENTRAL BOARD OF DIRECT TAXES, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI-110002, REPRESENTED BY ITS CHAIRPERSON. BY ADVS. P.G.JAYASHANKAR G.KEERTHIVAS THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Dated this the 14[th] day of February, 2024 The present writ petition has been filed impugningExt.P3 notice and Ext.P4 order issued and passed underSection 148 of the Income Tax Act, 1961, and passed underSection 148A(d) of the the Income Tax Act, 1961. 2.The petitioner did not file his return of incomefor the assessment year 2016-17. The specific informationwas disseminated through the Insight Portal in accordancewith the Risk Management Strategy formulated by theCBDT. As per the opinion of the assessing officer, theinformation available against the petitioner would disclosethat income chargeable to tax has escaped assessmentwithin the meaning of Section 147 of the Income Tax Act.After notice, the petitioner had filed the reply and orderunder Section 148A(d) came to be passed, which wouldshow that the petitioner had received Rs.99,24,500 as saleconsideration of three immovable properties, and theincome generated from the said receipt remainunexplained. As the petitioner did not file return of his WPC No.44172 of 2023 income, the assessing authority in its order under Section148A(d) was of the opinion that the assessee did not haveany proper and valid explanation/submission on the saidissue and therefore, the entire consideration ofRs.99,24,500/- would fall within the limit of unexplainedincome which had escaped assessment. Thereafter, noticeunder Section 148 has been issued and the petitioner hasalso submitted reply to the said notice. In reply to thenotice issued under Section 148 dated 27.04.2023, thepetitioner had requested for transfer of file to the assessingofficer having jurisdiction, as according to the petitioner,the petitioner is resident Indian and the InternationalTaxation Ward would not have the jurisdiction in respect ofthe petitioner. 3.Learned counsel for the petitioner submits thatthe petitioner was having a share of 50% only andtherefore, the petitioner’s income would become less thanRs.50,00,000/- and therefore, the order impugned becomesultravirus. He further submits that the petitioner beingresident Indian, the International Ward cannot havejurisdiction to proceed with the matter. 3.Learned counsel for the petitioner submits thatthe petitioner was having a share of 50% only andtherefore, the petitioner’s income would become less thanRs.50,00,000/- and therefore, the order impugned becomesultravirus. He further submits that the petitioner beingresident Indian, the International Ward cannot havejurisdiction to proceed with the matter. 4.As per the details mentioned in the impugnedorder, the total income which escaped assessment is morethan 99 lakhs. Whether the petitioner has 50% share or thepetitioner has generated the entire income for himself isthe question to be determined in the assessmentproceedings. At the stage of finalization of the order underSection 148A(d), detailed enquiry regarding the income ofthe petitioner cannot be considered. The limited purpose ofan order under Section 148A(d) is to have satisfaction bythe assessing authority whether to proceed or not toproceed with reopening assessment of the petitioner, incase the income has escaped assessment in the relevantassessment year. In the present case, as per the impugnedorder more than 99 lakhs of income generated by thepetitioner by sale of three properties had escapedassessment, and therefore, there is no jurisdictional erroras contended by the learned counsel for the petitioner. 5.If the International Taxation Ward does not havejurisdiction, it will transfer the matter to the relevantassessing officer for further proceedings. Therefore, I donot find that, this writ petition requires any interference by WPC No.44172 of 2023 this Court as there is neither any jurisdictional error norerror of law aparent on the face of record. Thus, the present writ petition is dismissed. It is opento the petitioner to raise all the contentions before theassessing authority while the assessment order is finalized.The petitioner has already filed return in pursuance to thenotice under Section 148. Before the finalization of theassessment order, the petitioner shall be heard and thenthe assessment order will be finalized by the jurisdictionalassessing officer. Sd/- DINESH KUMAR SINGH JUDGE AP APPENDIX OF WP(C) 44172/2023 PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE NOTICE UNDER CLAUSE(B) OF SECTION 148 A OF THE INCOME TAX ACT 1961, ISSUED BY THE 1ST RESPONDENT DATED 24-03-2023Exhibit P2TRUE COPY OF THE REPLY SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT 10-04-2023Exhibit P3TRUE COPY OF THE NOTICE UNDER SECTION 148 OF THE INCOME TAX ACT 1961 ISSUED BY THE 1ST RESPONDENT DATED 27-4-2023Exhibit P4THE TRUE COPY OF THE ORDER UNDER CLAUSE (D)OF SECTION 148A OF THE INCOME TAX ACT 1961 DATED 27-4-2023 ISSUED BY 1ST RESPONDENTExhibit P5TRUE COPY OF THE ACKNOWLEDGMENT OF THE INCOME TAX RETURN FILED BY THE PETITIONER IN ASSESSMENT YEAR 2016-2017Exhibit P6TRUE COPY OF THE REPRESENTATION DATED 14-06-2023 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENTExhibit P7TRUE COPY OF THE NOTICE DATED 10.01.2024 ISSUED BY THE INCOME TAX OFFICER WARD-1 & TPS,KASARGODEXHIBIT P7True copy of the letter dated 30-01-2023EXHIBIT P8True copy of the Acknowledgement No. 939127921300123EXHIBIT P9True copy of the letter dated 09-02-2023EXHIBIT P10True copy of the Acknowledgement No. 951909481090223EXHIBIT P11True copy of the Acknowledgement No. 114301881120423