Shri.Tukaram Buimappa Hebballi vs The Initiating Officer And
2023 Latest Caselaw 5373 Kant

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                                                           NC: 2023:KHC-D:8416
                                                             WP No. 112595 of 2019




                           IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

                                DATED THIS THE 7TH DAY OF AUGUST, 2023

                                                 BEFORE

                           THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM

                               WRIT PETITION NO. 112595 OF 2019 (T-IT)

                      BETWEEN:

                      SHRI TUKARAM BHIMAPPA HEBBALLI,
                      AGED: 56 YEARS, OCC: AGRICULTURE,
                      A/P: JUNNUR,
                      TQ: MUDHOL, DIST: BAGALKOTE-587 313.
                                                                       ...PETITIONER
                      (BY SRI H.R. KAMBIYAVAR, ADV. FOR SRI K.R. PRASAD,
                      SRI ASHOK A. KULKARNI, ADV. AND SRI SIDDAREDDY K.G., ADV.)

                      AND:

                      1.   THE INITIATING OFFICER AND
                           DY. COMMISSIONER OF INCOME TAX (BPU),
                           THIRD FLOOR, RIGHT WING,
                           TRISTAR BUILDING,
                           PLOT NO.13-B, EDC COMPLEX,
                           PATTO, PANAJI-403 001, GOA.

MOHANKUMAR            2.   THE UNION OF INDIA,
B SHELAR                   REPRESENTED BY ITS SECRETARY,
                           MINISTIRY OF FINANCE,
Digitally signed by
MOHANKUMAR B
                           NORTH BLOCK, NEW DELHI.
SHELAR                                                              ...RESPONDENTS
Location: DHARWAD
Date: 2023.08.08
12:57:13 -0700
                      (BY SRI Y.V. RAVIRAJ, ADV. FOR R1 AND R2)

                           THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
                      OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR
                      ORDER OR DIRECTION IN THE NATURE OF CERTIORARI OR
                      OTHERWISE TO QUASH THE NOTICE U/S 24(1) OF THE PBPT ACT
                      (ACT NO.43 OF 2016) BEARING IO/BPU/PNJ/BSC/24(1)/2018-19/
                      14A DATED 29.03.2019 ISSUED BY THE 1ST RESPONDENT MARKED
                      AS ANNEXURE-A; ISSUE A WRIT OR ORDER OR DIRECTION IN THE
                      NATURE OF CERTIORARI OR OTHERWISE TO QUASH THE
                      PROVISIONAL ATTACHMENT ORDER U/S 24(3) OF THE PBPT ACT
                      (ACT NO.43 OF 2016) BEARING F.NO. IO/BPU/PNJ/BSCL/24(3)/
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                                               NC: 2023:KHC-D:8416
                                                  WP No. 112595 of 2019




2018-19/14 DATED 29.03.2019 PASSED BY THE 1ST RESPONDENT
MARKED AS ANNEXURE-B AND SUCH OTHER RELIEFS.

      THIS PETITION, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, THE COURT MADE THE FOLLOWING:

                                  ORDER

Captioned petition is filed seeking following reliefs.

a) issue a writ or order or direction in the nature of certiorari or otherwise to quash the notice u/s 24(1) of the PBPT Act (Act No.43 of 2016) bearing IO/BPU/PNJ/BSC/24(1)/2018-19/14A dated 29.03.2019 issued by the 1st respondent marked as Annexure-A;

b) issue a writ or order or direction in the nature of certiorari or otherwise to quash the provisional attachment order u/s 24(3) of the PBPT Act (Act No.43 of 2016) bearing F.No. IO/BPU/PNJ/BSCL/24(3)/2018- 19/14 dated 29.03.2019 passed by the 1st respondent marked as Annexure-B as unlawful and illegal.

c) ) issue a writ or order or direction in the nature of certiorari or otherwise to quash the order u/s 24(4)(a)(i) of the PBPT Act bearing F.No.IO/BPU/PNJ/BSCL/24(3)/2018-19/14A dated 29.05.2019 passed by the 1st respondent marked as Annexure-D as unlawful and illegal."

d) ) issue a writ or order or direction in the nature of writ of prohibition restraining the 1st respondent and those acting under the provisions of PBPT Act (Act No.43 of 2016) from taking any action further to the issue of Notice u/s 24(1) of the PBPT Act.

NC: 2023:KHC-D:8416 WP No. 112595 of 2019

2. The short question that needs consideration at

the hands of this Court is as to whether initiation of

proceedings in respect of transaction that have taken place

prior to commencement of Prohibition of Benami Property

Transactions Act, 1988 (for short "the Act") can be subjected

to initiation of proceedings under section 24(1) of the Act.

The issue is squarely covered by the law laid down by the

Hon'ble Apex Court in the case of Union of India v. M. S.

Ganpati Dealcom Pvt. Ltd., (Civil Appeal No.5783/2022

disposed on 23.08.2022). The Co-ordinate Bench of this

Court in identical case, in W.P.No.111424/2019 and

connected matters disposed on 22.05.2022, relying on the

judgment of the Hon'ble Apex Court has quashed the

proceedings initiated under section 24(1) of the Act. The law

laid down by the Hon'ble Apex Court in the judgment cited

supra is also applicable to the present set of facts. Therefore,

the petitioner succeeds. For the reasons stated supra, I pass

the following:

ORDER

i. The writ petition stands allowed.

NC: 2023:KHC-D:8416 WP No. 112595 of 2019

ii. The impugned notice issued under Section 24(1) and provisional attachment order under section 24(3) of the Act are hereby quashed and consequential proceedings at Annexure-C are also hereby quashed.

iii. In view of disposal of the petition, pending interlocutory applications, if any, do not survive for consideration and are disposed of accordingly.

Sd/-

JUDGE