Arya Vaidya Sala V. Assessment Unit, National E-Assessment Centre, Delhi Income Tax Department and Commissioner of Income Tax, (Exemption), Kochi and Principal Chief Commissioner of Income Tax, Ernakulam

WP(C)/13032/2024

AI Insights

The case involves Arya Vaidya Sala, a petitioner and assessee under the Income Tax Act, 1961, who contested the final orders passed by the Income Tax Department without a proper response to their request for an extension of time to reply to a show cause notice. The petitioner had been issued several notices regarding the assessment year 2022-23, and despite responding to these, the final order was passed without considering their request for more time to provide a detailed reply. The court found this procedure to be in violation of the principles of natural justice and quashed the final order, directing a re-assessment after providing an opportunity for the petitioner to respond.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 805640 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-08-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CYRIAC TOM; JOSE JOSEPH
• Assessee Lawyers: S RAJ
• Keywords: Extension of time; Income tax assessment; Natural Justice; Show cause notice
• Section: 144; 142(1); 143(2); 12A; 10(23c)(iv)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 1ST DAY OF AUGUST 2024 / 10TH SRAVANA, 1946 WP(C) NO. 13032 OF 2024 PETITIONER/S: ARYA VAIDYA SALA, ARYA VAIDYA SALA ROAD, KOTTAKKAL, MALAPPURAM, REPRESENTED BY ITS MANAGING TRUSTEE DR .P MADHAVANKUTTY VARIER, PIN - 676503 BY ADV S.ARUN RAJ RESPONDENT/S: 1 ASSESSMENT UNIT, NATIONAL E-ASSESSMENT CENTRE, DELHI INCOME TAX DEPARTMENT, 2ND FLOOR, E- RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI, PIN - 110003 2 THE COMMISSIONER OF INCOME TAX, (EXEMPTION), SANJUAN TOWER, BEHIND CR BUILDING, KOCHI, KERALA, PIN - 682018 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, CR BUILDING, IS PRESS ROAD, ERNAKULAM, COCHIN, PIN – 682018 SRI.. CYRIAC TOM, SC-IT SRI. JOSE JOSEPH – SR. SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01.08.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 13032 OF 2024 2 JUDGMENT The petitioner is an assessee under the Income Tax Act, 1961. In relation to the assessment year 2022-23, certain notices were issued to the petitioner. According to the petitioner, the petitioner had replied to each and every notice. On 05.02.2024, the petitioner was served with Ext.P9 notice, which is stated to be a show cause notice as to why the proposed variation should not be made. The petitioner was called upon to submit its response to Ext.P9 by 09.02.2024. The petitioner submitted Ext.P10 reply dated 08.02.2024 (filed on 09.02.2024 as per Ext.P10 acknowledgment) seeking time upto 09.04.2024 for furnishing a reply along with details. However, the 1st respondent proceeded to pass final orders without even rejecting Ext.P10 request for time. 2. Learned Standing Counsel appearing for the Income Tax Department would submit that Ext.P9 show cause notice and Ext.P10 request for extension of time should not be seen in isolation and a series of notices issued to the petitioner and the replies given to the petitioner, would indicate that the petitioner was attempting to delay the proceedings. However, it is not disputed before me that no reply was given to the petitioner to Ext.P10 request. WP(C) NO. 13032 OF 2024 3 3. Having heard the learned counsel appearing for the petitioner and the learned Standing Counsel appearing for the Income Tax Department and considering the fact that no reply was given to Ext.P10 request, I am of the view that Ext.P11 order is one issued in violation of the principles of natural justice. Therefore, Ext.P11 will stand quashed. The 1st respondent is directed to provide a further opportunity to the petitioner to file a reply to Ext.P9 and thereafter, the assessment of the petitioner shall be completed in accordance with the law, after affording an opportunity of hearing to the petitioner. Sd/- GOPINATH P. JUDGE ajt WP(C) NO. 13032 OF 2024 4 APPENDIX OF WP(C) 13032/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE EXEMPTION NOTIFICATION/APPROVAL ISSUED UNDER SECTION 10 (23C) (IV) OF THE ACT Exhibit P2 A TRUE COPY OF THE REGISTRATION CERTIFICATE ISSUED UNDER SECTION 12A OF THE ACT BY THE COMPETENT AUTHORITY Exhibit P3 A TRUE COPY OF THE INTIMATION DATED 17-2-2023 ISSUED BY THE CENTRALISED PROCESSING CENTRE (CPC), BENGALURU Exhibit P4 A TRUE COPY OF THE NOTICE DATED 2-6-2023 U/S 143 (2) OF THE ACT ISSUED BY THE 1ST RESPONDENT Exhibit P5 A TRUE COPY OF THE ACKNOWLEDGMENT DATED 5-6- 2023 FOR THE RESPONSE SUBMITTED TO SECTION 143(2) OF THE ACT Exhibit P6 A TRUE COPY OF THE NOTICE DATED 12-10-2023 U/S 142(1) OF THE ACT ISSUED BY THE 1ST RESPONDENT FOR THE AY 2022-23 Exhibit P7 A TRUE COPY OF THE LETTER DATED 24-10-2023 E- FILED BY THE PETITIONER ON 25-10-2023 WITH THE ACKNOWLEDGMENT Exhibit P8 A TRUE COPY OF THE DETAILED REPLY DATED 21- 11-2023 E-FILED BY THE PETITIONER ON 25-11- 2023 IN RESPONSE TO SECTION 142 (1) NOTICE FOR THE AY 2022-23 ALONG WITH THE ACKNOWLEDGMENT Exhibit P9 A TRUE COPY OF THE SHOW CAUSE NOTICE DATED 5- 2-2024 ISSUED BY THE 1ST RESPONDENT FOR THE AY 2022-23 Exhibit P10 A TRUE COPY OF THE LETTER DATED 8-2-2024 E- FILED BY THE PETITIONER ON 9-2-2024 AND ITS ACKNOWLEDGMENT Exhibit P11 A TRUE COPY OF THE ASSESSMENT ORDER DATED 28- 2-2024 U/S 144 OF THE ACT ISSUED BY THE 1ST RESPONDENT FOR THE AY 2022-23 ALONG WITH THE DEMAND NOTICE "