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2025 Supreme(Online)(KAR) 7280
HIGH COURT OF KARNATAKA
KRISHNA S DIXIT, MR JUSTICE G BASAVARAJA, JJ
THE UNION OF INDIA DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA – Appellant
Versus
SRI. AROON RAMAN – Respondent
WA 336 of 2023
Notice under Section 143(2) is mandatory in cases of income escaping assessment.
Headnote:Section 143(2) of the Income Tax Act mandates issuance of notice in cases of income escaping assessment. The Single Judge ruled in favor of the Assessee, which was contested by the Revenue based on misinterpretation of case law. The court upheld the Single Judge's decision, enabling the Revenue to pursue alternative proceedings.
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| 1. this case challenges prior judgment in a tax context. (Para 1) |
| 2. arguments regarding the necessity of proper notice for assessment are presented. (Para 2 , 3) |
| 3. the court references the prevailing laws governing notice issuance for income assessment. (Para 5) |
ORAL JUDGEMENT
(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)
This Intra-Court Appeal is directed against a learned Single Judge’s order dated 09.03.2021 whereby Assesee’s W.P.No.13326/2014 (T-IT) having been favoured, relief has been accorded to him.
2. Learned Sr. Panel Counsel appearing for the Appellant – Revenue vehemently argues that the learned Single Judge misconstrued the Apex Court decision in ASSISTANT COMMISSIIONER OF INCOME TAX vs. HOTEL BLUE MOON (2010) 321 ITR 362 and therefore, arrived at a wrong conclusion to the effect that issuing notice of the kind was a sine qua non. He also takes us through the Appeal papers which were part of the Paper Book before the learned Single Judge.
3. Learned Senior Advocate appearing for the Respondent – Assessee resists the Appeal drawing our attention to the text of Paragraph Nos. 4 & 5 of the impugned order; he submits that Appeal of the kind is not maintainable since the Writ Petition was disposed off on the admitted position of law & facts. We agree with this because said Paragraphs read as under:
“4. Insofar as the requirement of issuance of notice under Section 143(2) of I. T. Act, the attention is drawn to the judgment of Apex Court in the case ofAssistant Commissioner of Income-Tax v.Hotel Blue Moon reported in(2010) 321 ITR 362 (SC) and it is pointed out that in case of income escaped from assessment, the procedure, including notice under Section 143(2) of I. T. Act ought to have been issued.
5. Learned counsel appearing for the Revenue does not dispute the position as regards to the law laid down by the Apex Court in the case of Hotel Blue Moon (supra). “
In the above circumstances, the Appeal is disposed off reserving liberty to the Appellant – Revenue to explore other proceedings in accordance with law. In that connection, all contentions are kept open.
Costs made easy.
JUDGE
