ARUN THOMAS, V. UNION OF INDIA,

WP(C)/18293/2022

AI Insights

Arun Thomas filed writ petitions challenging the notices and orders issued by the income tax authorities for the assessment years 2015-16 and 2016-17. The challenges were based on the grounds that the digital signatures on the notices were not verified and that the reasons for reopening the assessments were not valid. The High Court dismissed the petitions, stating that digital signatures do not require further verification once affixed by a competent authority and that the petitioner should seek redress through the appellate process rather than through writ petitions.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 725039 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P K MENON; JOSE JOSEPH
• Assessee Lawyers: M NAMBIAR; K MATHAI; JOSON MANAVALAN; KURYAN THOMAS; PAULO ABRAHAM; RAJAKANNAN
• Keywords: Digital Signatures; Income Tax; Re-opening of assessment; Writ petition; Unauthorised Notices
• Section: 147; 148; 142(1); 143(2); 144B; 156

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY,THE 29TH DAY OF NOVEMBER 2023/8TH AGRAHAYANA, 1945 WP(C) NO. 18292 OF 2022 PETITIONER: ARUN THOMAS, KANNATTU BABY MEMORIAL BUILDING, M.C. ROAD, CHENGANNUR- 689 121, RESIDING AT KANNATTU HOUSE, PERISSERY P.O, CHENGANNUR-689 126. BY ADVS. M.GOPIKRISHNAN NAMBIAR K.JOHN MATHAI(J-212) JOSON MANAVALAN KURYAN THOMAS PAULOSE C. ABRAHAM RAJA KANNAN RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NORTH BLOCK, NEW DELHI 110 001. 2 INCOME TAX OFFICER, WARD 1 AND TPS, T.K. ROAD, THIRUVALLA 689 101. 3 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI 110 003 BY ADVS. SRI. P.K.RAVINDRANATHA MENON (SR.) SRI. JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2023, ALONG WITH W.P.(C.)NO.18293/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P .(C.) Nos.18292 & 18293 of 2022 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY,THE 29TH DAY OF NOVEMBER 2023/8TH AGRAHAYANA, 1945 WP(C) NO. 18293 OF 2022 PETITIONER: ARUN THOMAS, KANNATTU BABY MEMORIAL BUILDING, M.C. ROAD, CHENGANNUR - 689121, RESIDING AT KANNATTU HOUSE, PERISSERY P.O, CHENGANNUR – 689126. BY ADVS. M.GOPIKRISHNAN NAMBIAR K.JOHN MATHAI JOSON MANAVALAN KURYAN THOMAS PAULOSE C. ABRAHAM RAJA KANNAN RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NORTH BLOCK, NEW DELHI – 110001. 2 INCOME TAX OFFICER, WARD 1 & TPS, T.K. ROAD, THIRUVALLA – 689101. 3 THE ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI – 110003. BY SRI. JOSE JOSEPH, SC, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2023, ALONG WITH W.P.(C.)NO.18292/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P .(C.) Nos.18292 & 18293 of 2022 3 JUDGMENT The present two writ petitions have been filed impugning Exts.P1 notice, P11 show cause notice and P14 order and P15 demand notice in respect of assessment years 2015-16 and 2016-17 respectively, wherein the assessment proceedings have been completed under Section 147 read with Section 144B of the Income Tax Act, 1961. The petitioner instead of challenging the assessment orders has approached this Court with these writ petitions. 2. One of the grounds urged in these writ petitions is that the Digital Signatures put on the notices are non-existence as not verified and therefore, the notices as well as the impugned orders are unauthorised, improper and no proceedings could be treated to have been taken validly for finalising the impugned assessment. The second ground urged by the W.P .(C.) Nos.18292 & 18293 of 2022 4 learned counsel for the petitioner is that the reasons for re-opening the assessment are non-existence. 3. I am least impressed by the aforesaid arguments. The Digital Signatures are not required to be verified. Once the Digital Signatures are put on the record or on the proceedings by a competent authority, there is no requirement for further verification. Therefore, there is no substance in the contention of the learned counsel for the petitioner that since the Digital Signatures were not verified, the notice and proceedings became non est. 4. The second ground that the reasons for re- opening of the assessment are not borne out also is liable to be rejected, as after following the due process as contemplated under the provisions for re- assessment, the remedy, if any is to file appeal and not to approach this Court. W.P .(C.) Nos.18292 & 18293 of 2022 5 5. Therefore, both the writ petitions have no merit, which I hereby dismiss. The petitioner may take steps to avail the statutory remedy of appeal, if so advised. Further, whether the Digital Signatures were expired or not is a disputed question of fact and this Court would not enter into the arena of disputed question of fact in exercise of its jurisdiction under Article 226 of the Constitution of India. Even otherwise, it is a hyper-technical issue and this Court is not inclined to entertain such a plea in exercise of its jurisdiction under Article 226 of the Constitution of India. Sd/- DINESH KUMAR SINGH JUDGE DCS/07.12.2023 W.P .(C.) Nos.18292 & 18293 of 2022 6 APPENDIX OF WP(C) 18292/2022 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE NOTICE UNDER SECTION 148 DATED 31.03.2021 ISSUED BY 2ND RESPONDENT. EXHIBIT P2 A TRUE COPY OF THE LETTER DATED 15.04.2021 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE LETTER DATED 16.04.2021 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE COMMUNICATION DATED 19.04.2021, ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE OBJECTIONS TO THE REASON FOR REOPENING DATED 27.04.2021, FILED BY THE PETITIONER (ALONG WITH ITS ATTACHMENTS) BEFORE THE 2ND RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE PROCEEDINGS DATED 18.11.2021 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER. EXHIBIT P7 A TRUE COPY OF THE NOTICE UNDER SECTION 143(2) DATED 11.11.2021. EXHIBIT P8 A TRUE COPY OF THE REPLY DATED 23.11.2021 (WITHOUT ATTACHMENTS) SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE NOTICE UNDER SECTION 142(1) DATED 27.03.2022 ISSUED BY THE 3RD RESPONDENT, TO THE PETITIONER. EXHIBIT P10 A TRUE COPY OF THE REPLY DATED 28.03.2022 (WITHOUT ANNEXURES) ALONG WITH THE ACKNOWLEDGEMENT (ACKNOWLEDGEMENT NO. 447956211280322) W.P .(C.) Nos.18292 & 18293 of 2022 7 FOR HAVING SUBMITTED THE REPLY. EXHIBIT P11 A TRUE COPY OF THE SHOW CAUSE NOTICE ITBA/AST/F/147 (SCN)/2021- 22/1041888540(1) DATED 29.03.2022 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXHIBIT P12 A TRUE COPY OF THE OBJECTIONS DATED 30.03.2022 ALONG WITH THE ACKNOWLEDGEMENT NO. 508364 011300322) FOR HAVING SUBMITTED BY THE OBJECTIONS. EXHIBIT P13 A TRUE COPY OF THE SCREEN SHOT OF THE ITBA PORTAL, EVIDENCING THE PETITIONER EXERCISING THE OPTION FOR PERSONAL HEARING IN THE MODE PRESCRIBED. EXHIBIT P14 THE TRUE COPY OF THE ORDER OF ASSESSMENT DATED 31.03.2022 ALONG WITH THE COMPUTATION SHEET, PASSED BY THE 3RD RESPONDENT. EXHIBIT P15 THE TRUE COPY OF THE DEMAND NOTICE DATED 31.03.2022 ISSUED BY THE 3RD RESPONDENT ISSUED UNDER SECTION 156 OF THE ACT. EXHIBIT P16 A TRUE COPY OF THE STATUS OF THE DIGITAL SIGNATURE OF THE 3RD RESPONDENT W.P .(C.) Nos.18292 & 18293 of 2022 8 APPENDIX OF WP(C) 18293/2022 PETITIONER EXHIBITS EXHIBIT P1 A TRUE COPY OF THE NOTICE UNDER SECTION 148 DATED 31.03.2021 ISSUED BY 2ND RESPONDENT EXHIBIT P2 A TRUE COPY OF THE LETTER DATED 15.04.2021 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P3 A TRUE COPY OF THE LETTER DATED 16.04.2021 SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P4 A TRUE COPY OF THE COMMUNICATION DATED 19.04.2021, ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. EXHIBIT P5 A TRUE COPY OF THE OBJECTIONS TO THE REASON FOR REOPENING DATED 27.04.2021, FILED BY THE PETITIONER (ALONG WITH ITS ATTACHMENTS) BEFORE THE 2ND RESPONDENT. EXHIBIT P6 A TRUE COPY OF THE PROCEEDINGS DATED 18.11.2021 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER EXHIBIT P7 A TRUE COPY OF THE NOTICE UNDER SECTION 143(2) DATED 11.11.2021. EXHIBIT P8 A TRUE COPY OF THE REPLY DATED 23.11.2021 (WITHOUT ATTACHMENTS) SUBMITTED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. EXHIBIT P9 A TRUE COPY OF THE NOTICE UNDER SECTION 142(1) DATED 27.03.2022 ISSUED BY THE 3RD RESPONDENT, TO THE PETITIONER. EXHIBIT P10 A TRUE COPY OF TH REPLY DATED 28.03.2022 (WITHOUT ANNEXURES) ALONG WITH THE ACKNOWLEDGEMENT (ACKNOWLEDGEMENT NO. 448009681280 322) FOR HAVING SUBMITTED W.P .(C.) Nos.18292 & 18293 of 2022 9 THE REPLY EXHIBIT P11 A TRUE COPY OF THE SHOW CAUSE NOTICE NO. ITBA/AST/F/147(SCN)/202122/1041888738(1) DATED 29.03.2022 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXHIBIT P12 A TRUE COPY OF THE OBJECTIONS DATED 30.03.2022 ALONG WITH THE ACKNOWLEDGEMENT (ACKNOWLEDGEMENT NO. 508826241300 322) FOR HAVING SUBMITTED THE OBJECTIONS. EXHIBIT P13 A TRUE COPY OF THE SCREEN SHOT OF THE ITBA PORTAL, EVIDENCING THE PETITIONER EXERCISING THE OPTION FOR PERSONAL HEARING IN THE MODE PRESCRIBED EXHIBIT P14 THE TRUE COPY OF THE ORDER OF ASSESSMENT DATED 31.03.2022 ALONG WITH THE COMPUTATION SHEET, PASSED BY THE 3RD RESPONDENT. EXHIBIT P15 THE TRUE COPY OF THE DEMAND NOTICE DATED 31.03.2022 ISSUED BY THE 3RD RESPONDENT, ISSUED UNDER SECTION 156 OF THE ACT EXHIBIT P16 A TRUE COPY OF THE SCREENSHOTS SHOWING THE STATUS OF THE DIGITAL SIGNATURE OF THE 3RD RESPONDENT "