Ameer Mohammed V. Union of India, Department of Revenue, Ministry of Finance, Government of India and Central Board of Direct Taxes and National Faceless Assessment Centre and Assistant/Additional/Joint/Deputy Commissioner of Income Tax/Income Tax Officer National Faceless Assessment Centre - 1(1)(2) and Principal Chief Commissioner of Income Tax (Kerala)

WP(C)/37680/2022

AI Insights

The case involves Ameer Mohammed, the petitioner, who challenged the assessment order (Ext.P7) issued by the Income Tax Department, claiming it was done without considering his updated return (Ext.P4) filed under Section 139(8A) of the Income Tax Act, 1961, and without providing him an opportunity to be heard. The respondents included various authorities under the Ministry of Finance, Government of India, and the assessment was related to the fiscal year 2020-2021. The court found that the updated return was not considered in the assessment and allowed the writ petition, quashing the initial assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 802491 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 02-12-2022
• Assessment Year: misc
• Other Referred Cases: WP(C) No.27163 of 2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: TOMSON EMMANUEL
• Keywords: Assessment Order; Income Tax Act; Opportunity of being heard; Updated return
• Section: 139(8A)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 2ND DAY OF DECEMBER 2022 / 11TH AGRAHAYANA, 1944 WP(C) NO. 37680 OF 2022 PETITIONER/S: AMEER MOHAMMED , AGED 38 YEARS S/O. KOODATH UMMER, KOODATHHOUSE, HMT COLONY P O, KALAMASSARY - ERNAKULAM DISTRICT, PIN - 683503 BY ADV TOMSON T.EMMANUEL RESPONDENT/S: 1 UNION OF INDIA, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI , PIN - 110001 REPRESENTED BY ITS SECRETARY., 2 THE CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI, REPRESENTED BY ITS CHAIRPERSON OF INDIA, 3 THE NATIONAL FACELESS ASSESSMENT CENTRE MAYUR BHAWAN, COUNNAUGHT LANE, BARAKHAMBA, NEW DELHI,PIN - 110001 REPRESENTED BY PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (NFAC) 4 ASSISTANT/ADDITIONAL/JOINT/DEPUTY COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER NATIONAL FACELESS ASSESSMENT CENTRE - 1(1)(2), (NATIONAL E-ASSESSMENT CENTRAL), NEW DELHI - 110001 5 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX (KERALA) CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI - 682018 ADV. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.12.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37680 OF 2022 2 JUDGMENT Petitioner has approached this Court, being aggrieved by the fact that Ext.P7 order of assessment has been issued, without considering Ext.P4 updated return filed by the petitioner, under the provisions of Section 139(8A) of the Income Tax Act, 1961. Learned counsel appearing for the petitioner also submitted that the assessment was completed without affording to the petitioner an opportunity of being heard. 2. Learned Standing Counsel appearing for the respondent-Department submits that after the amendment of Section 139 of the Income Tax by the provisions of the Finance Act of 2022, a new provision has been incorporated as Section 139(8A) of the Act, which reads as follows:- ‘’Any person, whether or not he has furnished a return under sub-section (1) or sub-section (4) or sub-section (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under this Act, for the previous year relevant to such assessment year, in the prescribed form, verified in such manner and setting forth such particulars as may be prescribed, at any time within twenty-four months from the end of the relevant assessment year.’’ It is submitted that Ext.P4 is the updated return filed by the petitioner under the provisions of Section 139(8A) of the WP(C) NO. 37680 OF 2022 3 Income Tax Act and the assessment ought to have been completed after taking note of the updated return as well. It is submitted that fresh orders can be passed taking note of Ext.P4 as well. 3. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the respondent-Department, this writ petition is allowed. Ext.P7 order of assessment, for the assessment year 2020-2021, in respect of the petitioner, will stand quashed, reserving liberty to the Department to complete a fresh assessment, after taking note of Ext.P4 updated return as well, and any explanation filed by the petitioner. The petitioner shall be afforded an opportunity of hearing before fresh orders of assessment are issued. The writ petition is disposed of as above. sd/- GOPINATH P. JUDGE ajt WP(C) NO. 37680 OF 2022 4 APPENDIX OF WP(C) 37680/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF INCOME TAX RETURN DATED 08-01- 2021, SUBMITTED BY THE PETITIONER FOR AY:2020-21. Exhibit P2 TRUE COPY OF NOTICE DATED 29-06-2021 ISSUED TO PETITIONER U/S.143(2) OF THE INCOME TAX ACT ISSUED BY 4TH RESPONDENT FOR AY:2020-21. Exhibit P3 TRUE COPY OF REPLY DATED 12-07-2021 SUBMITTED BY PETITIONER AGAINST EXT-P2 ALONG WITH DETAILS OF PAYMENT MADE AGAINST CREDIT CARDS. Exhibit P4 TRUE COPY OF INCOME TAX UPDATED RETURN FOR AY:2020-21 ALONG WITH AUDITED FINANCIAL STATEMENT SUBMITTED IN THE ONLINE PORTAL. Exhibit P5 TRUE COPY OF LETTER DATED 09-09-2022 ISSUED BY 4TH RESPONDENT PROVIDED IN THE ONLINE PORTAL. Exhibit P6 TRUE COPY OF E-PROCEEDINGS RESPONSE MADE BY PETITIONER IN THE ONLINE PORTAL AGAINST EXT- P5. Exhibit P7 TRUE COPY OF ASSESSMENT ORDER DATED 21-09- 2022 ISSUED IN THE ONLINE PORTAL WITHOUT CONSIDERING EXT-P3 AND EXT-P4 UPDATED RETURN FOR AY: 2020-21, BY 4TH RESPONDENT. Exhibit P8 TRUE COPY OF RELEVANT PAGE OF CIRCULAR F. NO. PR.CCIT/NEAC/SOP/2020-21 DATED 23-11-2020 ISSUED BY 3RD RESPONDENT. Exhibit P9 TRUE COPY OF INTERIM ORDER DATED 01-12-2021 IN WP(C) NO.27163 OF 2021 PASSED BY THIS HON'BLE COURT ON SIMILAR SET OF FACT. "