ABDUL KHADAR KUNJU, V. ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,

WP(C)/30370/2022

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The case involves Abdul Khadar Kunju, a lottery ticket seller, who faced an assessment order and subsequent penalty notices from the Income Tax Department without proper notification. The petitioner, due to hospitalization, had his representative file the tax return for the assessment year 2013-14. However, notices were sent to an incorrect email address, leading to the writ petition. The court found that the assessment and notices were issued without proper adherence to the principles of natural justice, specifically the right to be heard and notified adequately.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 748796 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: MARTHANDA VARMA K S HEMALATHA
• Keywords: Assessment Order; Email notification; Faceless assessment; Income Tax; Natural Justice
• Section: 271(1)(c); 271(1)(b); 271F

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS FRIDAY, THE 9TH DAY OF JUNE 2023 / 19TH JYAISHTA, 1945 WP(C) NO. 30370 OF 2022 PETITIONER/S: ABDUL KHADAR KUNJU, AGED 44 YEARS S/O SHAMSUDEEN,680,WARD 35,SHYLAJA MANZIL,THOPIL PURAYIDAM,KAVANADU-P.O,KOLLAM, PIN - 691003 BY ADVS. MARTHANDA VARMA PANDALAI.K S.HEMALATHA RESPONDENT/S: 1 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATITIONAL FACELESS ASSESSMENT CENTRE,DELHI, PIN - 110001 2 INCOME TAX OFFICER WARD-1 &TPS, AYAKAR BHAVAN,KARBALA JUNCTION RAILWAY STATION ROAD,KOLLAM, PIN - 691001 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 30370 OF 2022 2 JUDGMENT The writ petition is filed to quash Ext.P1 assessment order passed against the petitioner. 2. The relevant facts for the determination of the writ petition are: the petitioner is an Income Tax assessee doing business in the sale of lottery tickets. In respect of his income for the assessment year 2013-14, he had instructed his authorised representative to file the return as he was hospitalsied. Surprisingly, on 22.08.2022 and 09.09.2022, the petitioner received penalty notices from the 2nd respondent. On enquiry, he learnt that Exts.P1 assessment order and P2 demand notice have been passed against him without issuing any notice against him. On verification of the website of the respondents, the petitioner learnt that the respondents have sent notices in a wrong e-mail id assuming it to be email id of the petitioner, which is evident from Ext.P9 screen short of the respondents' website. The petitioner WP(C) NO. 30370 OF 2022 3 apprehends that the respondents may recover the demand under Ext.P1 assessment order as threatened in Exts.P3 to P8 notices. The entire proceedings leading to Ext.P1 are arbitrary, unsustainable and in hostile violation of the principles of the natural justice. Hence, the writ petition. 3. The 2nd respondent has filed a counter affidavit, inter-alia, admitting in paragraphs 6 and 8 that the e- mail was sent to an invalid email address and that there appears to be a case for setting aside Ext.P1 assessment order, for fresh disposal, after giving the petitioner an opportunity to respond to the various notices issued to him. Nevertheless, the said respondent has requested that the petitioner be directed to register his correct e- mail id in his e-filing account in the ITBA portal. 4. Heard; Sri. Marthanda Varma Pandalai, the learned Counsel appearing for the petitioner and Sri.Christopher Abraham, the learned Counsel appearing WP(C) NO. 30370 OF 2022 4 for the respondents. 5. Having considered the pleadings and materials on record and taking note of the unambiguous admission of the 2nd respondent in paragraphs 6 and 8 of the counter affidavit, this Court has no hesitation to set aside Ext.P1 assessment order and all consequential orders passed thereon, for the want of proper notice and hearing, which is undoubtedly a violation of the principles of natural justice. Resultantly, in exercise of the powers of this Court under Article 226 of the Constitution of India, I am inclined to allow the writ petition in the following manner: (i) Ext.P1 assessment order and Exts.P2 to P8 consequential demand notices are set aside. (ii) The petitioner is directed to register his correct e-mail id in his e-filing account of the WP(C) NO. 30370 OF 2022 5 ITBA portal, within two weeks from the date of receipt of a certified copy of this judgment. (iii) The respondents are directed to send fresh show cause notices to the petitioner's e-mail id immediately on the id getting registered. (iv) The petitioner shall, within a further two weeks from the date of receipt of the show cause notice, submit his reply with the supporting documents. (v) The respondents shall on receipt of the reply submitted by the petitioner, finalise the show cause notice, in accordance with law, after affording the petitioner an opportunity of being heard. (vi) Until such time orders are passed as directed above, all coercive proceedings WP(C) NO. 30370 OF 2022 6 pursuant to the demand in this writ petition shall stand deferred. The writ petition is ordered accordingly. Sd/- C.S.DIAS JUDGE rkc/09.06.23 WP(C) NO. 30370 OF 2022 7 APPENDIX OF WP(C) 30370/2022 PETITIONER EXHIBITS Exhibit-P1 ASSESSMENT ORDER DATED 26-3-2022 BY THE 1ST RESPONDENT Exhibit P2 DEMAND NOTICE DATED 26-3-2022 Exhibit P3 PENALTY NOTICE U/S271(1)(C) DATED 16-8- 2022 Exhibit -P4 PENALTY NOTICE U/S 271(1)(B) DATED 16- 08-2022 Exhibit- P5 NOTICE U/S 271F DATED 16-8-2022 Exhibit-P6 PENALTY NOTICE U/S 271(1)(C) DATED 6-9- 2022 Exhibit-P7 PENALTY NOTICE U/S 271(B)DATED 6/9/2022 Exhibit-P8 PENALTY NOTICE U/S 271F DATED 6-9-2022 Exhibit-P9 SCREEN SHOT OF IT DEPARTMENT OFFICIAL WEBSITE "