Case Law Details

Case Name : Lokesh Chandrappa Vs ITO (Karnataka High Court)
Appeal Number : Writ Petition No. 4349/2018
Date of Judgement/Order : 25/07/2019
Related Assessment Year :
Courts : All High Courts (4977) Karnataka High Court (242)

Lokesh Chandrappa Vs ITO (Karnataka High Court)

It is trite law that the Assessing Officer has a legal obligation to implement the order of the ITAT strictly and such failure would result in the failure of justice. A writ of mandamus would be issued in such circumstances to the respondent – Assessing Officer to carry out the directions given to him by the ITAT. This view is fortified by the judgment of the Hon’ble Apex Court in the case of Bhopal Sugar Industries Ltd., vs. Income Tax Officer, Bhopal  reported  in  40  ITR  618.  It is ex-facie apparent that no peak credit of the bank account has been worked out by the Assessing Officer to conclude the assessments on remand by the ITAT.

Hence, the order impugned at Annexure – D dated 26.12.2017 being perverse and illegal stands  quashed. The proceedings are restored to the file of the respondent –  Assessing  Officer  to  redo  the  assessment  in the light of the observations made by the  ITAT  inasmuch as any addition if to be made to  the  tax  declared, it should not be more than  the  peak  credit  in the bank account of the petitioner.

FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:

The petitioner has assailed the order dated 26.12.2017 passed  by  the  respondent  –  Assessing  Officer, under Section  143(3)  of  the  Income  Tax  Act, 1961 (‘Act’ for short) inter alia, seeking a direction to the respondent – Assessing Officer to  implement  the  orders of  the  Income  Tax  Appellate  Tribunal,  Bangalore  Bench 2015 relating to the Assessment Year 2009-10.

2. The petitioner had filed returns for the Assessment year in question as on  31.03.2011  which  has been culminated in the order of the of the ITAT dated  09.11.2016  in  I.T.A.No.1254/Bang/2015, whereby the Tribunal remanded the matter to the Assessing Officer with certain directions. The relevant portion of the said order is quoted hereunder for ready reference:-

“Further since the assessee’s case has been decided by the Assessing Officer as well as the CIT (Appeals) without any representative therefore in the facts and circumstances of the case, we set aside this matter to the record of the Assessing Officer  for granting one more opportunity to the assessee for explanation of the source of cash deposit and in any case the addition if any it should not be more than the peak credit in the bank account.”

 3. Pursuant to the said order of the ITAT, the Assessing Officer has passed the Assessment Order impugned herein determining the tax and penalty amount sans computing peak credit in the bank  account.

4. Learned Senior counsel Sri. Shankar A., appearing for the petitioner would point out that the Assessing Officer is bound to give effect to the order of the ITAT in letter and spirit. The Assessing Officer has proceeded to conclude the assessments sans giving  effect to the order of the ITAT inasmuch as the determination of the peak credit in the bank account is concerned.

5. Learned counsel for the revenue made an endeavour to justify the impugned

6. It is trite law that the Assessing Officer has a legal obligation to implement the order of the ITAT strictly and such failure would result in the failure of justice. A writ of mandamus would be issued in such circumstances to the respondent – Assessing Officer to carry out the directions given to him by the ITAT. This view is fortified by the judgment of the Hon’ble Apex Court in the case of Bhopal Sugar Industries Ltd., vs. Income Tax Officer, Bhopal  reported  in  40  ITR  618.  It is ex-facie apparent that no peak credit of the bank account has been worked out by the Assessing Officer to conclude the assessments on remand by the ITAT.

7. Hence, the order impugned at Annexure – D dated 26.12.2017 being perverse and illegal stands  quashed. The proceedings are restored to the file of the respondent –  Assessing  Officer  to  redo  the  assessment  in the light of the observations made by the  ITAT  inasmuch as any addition if to be made to  the  tax  declared, it should not be more than  the  peak  credit  in the bank account of the petitioner. The respondent – Assessing Officer shall comply with this order in an expedite manner preferably within  a  period  of  four  weeks from the date of receipt of certified copy of the  order.

Writ petition stands disposed of accordingly.

Download Judgment/Order

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *