ALEYAMMA JACOB, V. THE ASSISTANT COMMISSIONER OF INCOME TAX,

WP(C)/26215/2021

AI Insights

The case involves Aleyamma Jacob, the petitioner, who contested the adjustments made by the Income Tax Department to her tax returns for the assessment year 2017-2018. The adjustments were based on perceived inconsistencies in her tax return schedules, leading to a proposed adjustment of Rs.3,32,01,658. The petitioner argued that these adjustments and the subsequent rejection of her initial rectification petition violated the principles of natural justice. The court's decision focused on ensuring that the petitioner's rectification petition was heard and considered appropriately.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 686759 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 25-11-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: JOSEPH MARKOSE; ABRAHAM MARKOS; ABRAHAM JOSEPH MARKOS; ISAAC THOMAS; P G CHANDAPILLAI ABRAHAM; ALEXANDER JOSEPH MARKOS; SHARAD JOSEPH KODIANTHARA
• Keywords: Adjustment; Income Tax Return; Natural Justice; Rectification petition
• Section: 154; 143(1); 143(1)(a)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN THURSDAY, THE 25TH DAY OF NOVEMBER 2021 / 4TH AGRAHAYANA, 1943 WP(C) NO. 26215 OF 2021 PETITIONER: ALEYAMMA JACOB, AGED 83 YEARS NECHUPADAM HOUSE, KADAYIRUPPU, KOLENCHERY, ERNAKULAM DISTRICT, COCHIN - 682 311. BY ADVS. SRI. JOSEPH MARKOSE (SR.) SRI. ABRAHAM MARKOS SRI. ABRAHAM JOSEPH MARKOS SRI. ISAAC THOMAS SRI. P.G. CHANDAPILLAI ABRAHAM SRI. ALEXANDER JOSEPH MARKOS SRI. SHARAD JOSEPH KODIANTHARA RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE - 1, ALUVA - 683 101. 2 COMMISSIONER OF INCOME TAX, KOCHI – 682 018. 3 DEPUTY COMMISSIONER OF INCOME TAX, CENTRALISED PROCESSING CENTRE, BANGALORE - 560 500. 4 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110 001. SRI. CHRISTOPHER ABRAHAM – SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.11.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.26215 OF 2021 2 JUDGMENT The petitioner, an assessee under the provisions of the Income Tax Act, 1961 (for short 'the IT Act') has filed Income Tax Returns for the assessment year 2017-2018 and paid all admitted taxes. The 3rd respondent by Ext.P4 issued under Section 143(1)(a) of the IT Act proposed an adjustment of Rs.3,32,01,658/- as an incorrect claim for the reason the amount entered in Schedule SI are inconsistent with the corresponding amount entered in Schedule CG/Schedule OS. pursuant thereto, Ext.P6 intimation under Section 143(1) was issued making the adjustment as proposed in Ext.P4. 2. Contending that this is in violation of principles of Natural Justice, the petitioner filed Ext.P7 Rectification Petition. However, by Ext.P8, the same was rejected without hearing the petitioner. The petitioner therefore, filed Ext.P9 Rectification Petition which is pending before the 1st respondent. The limited prayer of the petitioner at this stage is for a direction to consider Ext.P9 Rectification Petition, at the earliest. WP(C).No.26215 OF 2021 3 3. Heard Sri.Joseph Markose, the learned Senior Counsel for the petitioner assisted by Sri.Abraham Joseph Markos and also Sri.Christopher Abraham, the learned Standing Counsel for the 1st respondent. Having regard to the facts and circumstances of the case, there will be a direction to the 1st respondent to consider Ext.P9 Rectification Petition, after hearing the petitioner, within a period of two months from the date of receipt of a copy of the judgment. Till such time the orders as above are passed, there will be a stay of recovery of the amounts demanded under Exts.P6 and P8. The writ petition is disposed of with the above direction. Sd/- MURALI PURUSHOTHAMAN JUDGE SPR WP(C).No.26215 OF 2021 4 APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT P1 TRUE COPY OF THE RETURN ACKNOWLEDGEMENT DATED 30.07.2017 FOR ASSESSMENT YEAR 2017-18. EXHIBIT P2 TRUE COPY OF THE RETURN FORM FOR ASSESSMENT YEAR 2017-18. EXHIBIT P3 TRUE COPY OF THE COMPUTATION OF INCOME FOR ASSESSMENT YEAR 2017-18. EXHIBIT P4 TRUE COPY OF THE COMMUNICATION DATED 10.08.2018 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 143(1) (a) OF THE INCOME TAX ACT, 1961. EXHIBIT P5 TRUE COPY OF THE OBJECTIONS DATED 11.03.2019 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P6 TRUE COPY OF THE INTIMATION DATED 28.03.2019 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961. EXHIBIT P7 TRUE COPY OF THE RECTIFICATION PETITION DATED 11.04.2019 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT UNDER SECTION 154 OF THE INCOME TAX ACT, 1961. EXHIBIT P8 TRUE COPY OF THE COMMUNICATION DATED 28.06.2019 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXHIBIT P9 TRUE COPY OF THE RECTIFICATION PETITION DATED 02.02.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. EXHIBIT P10 TRUE COPY OF THE COMMUNICATION DATED 13.02.2020 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P11 TRUE COPY OF THE REPLY DATED 13.02.2020 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. RESPONDENTS'S EXHIBITS:- NIL. "