ASHWANI DHINGRA Vs. CHIEF CIT

JUDGEMENT

(1.) BY means of the present writ petition filed under Art. 226 of the Constitution of India, the petitioner, Ashwani Dhingra, seeks a writ, order or direction in the nature of certiorari quashing the notices issued by the Income Tax Officer, Ward -1, Noida, respondent No. 4, on 20 -11 -2003 under section 148 of the Income Tax Act, 1961, hereinafter referred to as the Act, for the assessment years 1989 -90 to 1994 -95, collectively filed as Annex. 8 to the writ petition and other consequential reliefs.

(2.) BRIEFLY stated, the facts giving rise to the present petition are as follows : According to the petitioner, he was initially residing in the State of Punjab. His land, which was in Fazilka, district Ferozepur, was acquired by the Government of Punjab on 20 -8 -1973 under the provisions of the Land Acquisition Act, 1894. The compensation was awarded to him on 12 -9 -1990 and 29 -5 -1993 under the orders passed by the Punjab & Haryana High Court. He was paid interest only on 21 -8 -2001 from the date of taking over the Possession of the land. The petitioner had shifted to Noida, in the district of Gautam Budh Nagar in the year 1991 and since then he is staying at Noida and doing business there. After receiving the amount of interest on compensation on 21 -8 -2001 the petitioner filed revised returns on 14 -1 -2001 for the assessment years 1995 -96 to 2001 -02. He deposited the amount of income -tax due on the aforesaid income on 30 -12 -2001 and 31 -12 -2001. The returns had been accepted by the assessing officer on 9 -10 -2002. He also charged interest under sections 234A, 234B and 234C of the Act. The petitioner had filed an application for waiver under section 273A read with section 119 of the Act before the Chief Commissioner,1 Meerut on 3 -1 -2003. The application has been rejected vide order dated 23 -7 -2003 treating it to be premature. The Income Tax Officer issued demand notice on 19 -8 -2003 calling upon the petitioner to pay a sum of Rs. 16,22,303 for the assessment years 1995 -96 to 2000 -01. The orders dated 23 -7 -2003 and 19 -8 -2003 were subject -matter of challenge in Civil Misc. Writ Petn. No. 1001 of 2003 which had been disposed of by this court vide order dated 29 -10 -2003 with certain directions. On 7 -11 -2003, the petitioner served a copy of the order dated 29 -10 -2003 with the request that the application be registered and the bank accounts which have been seized be released. According to the petitioner, immediately thereafter the respondent No. 4 issued notices dated 20 -11 -2003 purporting to be under section 148 of the Act in respect of the assessment years 1989 -90 to 1994 -95. The said notices are under challenge in the present writ petition on the ground that the respondent No. 4 has got no right and jurisdiction to issue notices to the petitioner under section 148 of the Act as the same is barred by the limitation provided under section 149(1)(b) and section 150(1) and (2) of the Act. Further ground of challenge is that no reasons have been recorded as required under section 148(2) of the Act before issuing notices in question.

(3.) LEARNED counsel for the petitioner submitted that notices are barred by limitation as provided under sections 149(1)(b) and 150(1) and (2) of the Act. He relied upon a decision, of the Apex Court in the case of K. M. Sharma v. ITO : [2002]254ITR772(SC) . Sri Govind Krishna, learned counsel, submitted that in view of the provisions of section 150(1) and (2) of the Act, notices in question are well within limitation as the same have been issued in consequence of the order passed by the court in the land acquisition proceedings. He submitted that the decision of the Apex Court in the case of K.M. Sharma (supra) is of no assistance to the petitioner, on the other hand it helps the revenue.