A.S.Shajahan V. Additional/Joint/Deputy/Assistant Commissioner of Income Tax, Income Tax Officer, National Faceless Assessment Centre

WP(C)/13473/2022

AI Insights

The case involves A.S. Shajahan, the petitioner, who challenged an order imposing a penalty under Section 271A of the Income Tax Act, 1961, for the assessment year 2016-17. The penalty was based on an alleged failure to comply with procedural requirements during the tax assessment process. The petitioner argued that he was not given a fair opportunity to present his case as the online hearing link was not reissued following his request for an adjournment due to a religious ceremony. The Income Tax Department did not contest the absence of a fresh notice or link for the hearing. The court's decision emphasized the importance of adhering to the principles of natural justice in administrative proceedings.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796758 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 12-01-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ANIL NAIR; TELMA RAJU; EDATHARA KRISHNAN
• Keywords: Exparte; Natural Justice; Online Submissions; Penalty
• Section: 270A; 271A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 12TH DAY OF JANUARY 2024 / 22ND POUSHA, 1945 WP(C) NO. 13473 OF 2022 PETITIONER/S: A.S.SHAJAHAN, AGED 58 YEARS 32/3071F, FABA AGENCIES, NH BYE PASS, VYTTILA, ERNAKULAM-682 019. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN RESPONDENT/S: ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110 001. OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.13473 of 2022 2 JUDGMENT Dated this the 12th day of January, 2024 The present writ petition has been filed impugning Ext.P9 order dated 25.03.2022 passed under Section 270A of the Income Tax Act, 1961 whereby penalty under Section 271A of the Income Tax Act has been levied amounting to Rs.83,44,607/-. It is being 2% of Rs.41,72,30,364/- in respect of the assessment year 2016- 17. 2. Learned counsel for the petitioner submits that the petitioner was issued notice of hearing on 16.03.2022 in Ext.P7 providing the link for making submissions online on 17.03.2022. On receipt of the said notice, the petitioner requested for an adjournment vide email dated 17.03.2022 itself. The said request for adjournment was made on the ground that the authorized representative of the petitioner had to attend the ritual of his father’s death anniversary on 17.03.2022 and therefore, it was not possible for him to attend the hearing on 17.03.2022. The request was received and the status on the portal WPC No.13473 of 2022 3 would suggest that the request was opened. Learned counsel for the petitioner submits that no fresh link was provided for hearing and the impugned order came to be passed exparte. 3. Sri.Christopher Abraham, learned Senior Standing Counsel for the Income Tax Department is not in a position to suggest that fresh notice of hearing was issued to the petitioner or fresh link was provided for joining online for making submissions in respect of the penalty proceedings which got finalised on 25.03.2022. Considering the fact that there appears to be violation of principle of natural justice as the petitioner was not provided with fresh link and password etc, for making submissions online before passing the impugned order on Ext.P9 dated 25.03.2022, the present writ petition is allowed and the impugned order is set aside. The matter is remitted back to the respondent with direction to provide fresh link to the petitioner for making online submissions in respect of the penalty proceedings. If the petitioner fails to join and make WPC No.13473 of 2022 4 submissions after he is provided with the fresh link and password no further opportunity shall be granted. Let this order be communicated to the respondent as a request of learned Standing Counsel for compliance. Sd/- DINESH KUMAR SINGH JUDGE AP WPC No.13473 of 2022 5 APPENDIX OF WP(C) 13473/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 25.03.2019. Exhibit P2 TRUE COPY OF THE NOTICE DATED 14.01.2020. Exhibit P3 TRUE COPY OF THE LETTER DATED 20.02.2020 SUBMITTED BY THE PETITIONER. Exhibit P4 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 27.08.2021. Exhibit P5 TRUE COPY OF THE LETTER DATED 03.09.2021 SUBMITTED BY THE PETITIONER. Exhibit P6 TRUE COPY OF THE PROOF OF HAVING ELECTRONICALLY FILED THE REPLY. Exhibit P7 TRUE COPY OF THE NOTICE DATED 16.03.2022. Exhibit P8 TRUE COPY OF THE ADJOURNMENT APPLICATION FILED ALONG WITH EMAIL CONFIRMATION DATED 17.03.2022. Exhibit P9 TRUE COPY OF ORDER DATED 25.03.2022 ISSUED BY THE RESPONDENT. "