Biju Paul V. The Additional/Joint/Deputy/Asst. Commissioner of Income Tax National Faceless Assessment Centre, North Block, New Delhi and The Income Tax Officer, Ward-I & IPS, Office of the Joint Commissioner of Income Tax, Aluva Range, K.A.P Complex, Railway Station Road, Aluva and Commissioner of Income Tax, Second Floor, KAP Complex, Periyar Nagar, Aluva

WP(C)/19377/2022

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The case involves Biju Paul, the petitioner, who challenged the show cause notice and assessment order issued by the Income Tax authorities for the assessment year 2015-16. The petitioner did not initially file a return for the specified year, leading to a re-opening of the case under Section 147 of the Income Tax Act. Despite multiple notices, the petitioner did not furnish the required return, and a subsequent assessment order was issued. The petitioner contested the assessment on grounds of violation of natural justice, specifically citing the lack of a personal hearing and insufficient time to comply with the notices. The court's decision to set aside the assessment and remand the case was based on these procedural deficiencies.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796819 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 04-01-2024
• Assessment Year: misc
• Other Referred Cases: W.P.(C) No.6158 of 2021, W.P.(C) No.9852 of 2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: P SATHISAN; DONA AUGUSTINE; SRUTHI KUMAR
• Keywords: Assessment Order; Faceless assessment; Income Tax; Natural Justice
• Section: 147; 144; 142(1); 151; 144B; 148(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 4TH DAY OF JANUARY 2024 / 14TH POUSHA, 1945 WP(C) NO. 19377 OF 2022 PETITIONER/S: BIJU PAUL AGED 48 YEARS BUSINESS, SO LATE SRI PM PAILY PILLAI, PERUMPILLI HOUSE, AIKKARANAD SOUTH, KOLENCHERY P.O. ELAMKULAM KARA, AIKKARANAD SOUTH VILLAGE, KUNNATHUNAD TALUK, ERNAKULAM-682 311 BY ADVS. P.SATHISAN DONA AUGUSTINE SRUTHI S. KUMAR RESPONDENT/S: 1 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX NATIONAL FACELESS ASSESSMENT CENTRE, NORTH BLOCK, NEW DELHI P.O., PIN 110001. 2 THE INCOME TAX OFFICER, WARD-I & IPS, OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, ALUVA RANGE, K.A.P COMPLEX, RAILWAY STATION ROAD, ALUVA P.O., PIN-683 101 3 COMMISSIONER OF INCOME TAX SECOND FLOOR, KAP COMPLEX, PERIYAR NAGAR, ALUVA P.O., KERALA 683101 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C)No.19377 of 2022 2 JUDGMENT Dated this the 4th day of January, 2024 The petitioner-an assessee under the provisions of the Income Tax Act has filed the present writ petition impugning Ext.P8 show cause notice and Ext.P9 assessment order dated 29.03.2022 passed under the provisions of Section 147 read with section 144 and 144B of the Income Tax Act. The assessment year involved is 2015-16. 2. The assessee did not file the return for the said assessment year. The assessee/petitioner case was re-opened under Section 147 by recording the reason under Section 148(2) of the Income Tax Act and obtaining necessary sanction under Section 151 of the Income Tax Act. The assessment order would note that a notice under Section 148 was issued on 30.03.2021requiring the assessee to file/furnish return of his income for the assessment year 2015-16 within a period of 30 days from the receipt of notice. In response to same, the petitioner -assessee did not furnish the return of his income. Subsequently, 3 notices under WP(C)No.19377 of 2022 3 Section 142(1) were issued to the petitioner on 11.11.2021, 21.12.2021 and 12.03.2022. In response to the last notice dated 12.03.2022, the petitioner has requested for personal hearing. However, that request has communicated by email dated 21.03.2022. The petitioner was not afforded any opportunity of personal hearing. It is also relevant to note that the time granted by the last notice i.e, 12.03.2022 for compliance was only 3 days. 3. Considering the fact that there has been a violation of the principle of natural justice and the petitioner was not afforded an opportunity of hearing nor sufficient time was granted for filing reply to the notice dated 12.03.2022, under Section 142(1) of the Income Tax Act, I deem it appropriate to set aside the impugned assessment order and remand the matter back to the 1st respondent- the National Faceless Assessment Centre, North Block, New Delhi, for providing an opportunity to the petitioner of being heard before finalisation of the assessment order fresh. 4. Thus, the present writ petition is allowed. Impugned assessment is set aside and the matter is remitted WP(C)No.19377 of 2022 4 back to the 1st respondent with direction to communicate the petitioner the date of hearing. It is make clear that the petitioner shall not be afforded more than one opportunity of hearing through the facility of video conference. After hearing the petitioner and taking into consideration the submissions the fresh assessment order need to be passed. With the aforesaid direction, the present writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE AP WP(C)No.19377 of 2022 5 APPENDIX OF WP(C) 19377/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 08.03.2019 ISSUED BY THE RESPONDENT. Exhibit P2 TRUE COPY OF REQUEST SUBMITTED BY THE PETITIONER LETTER DATED 30.03.2019 WITH ACKNOWLEDGEMENT. Exhibit P3 TRUE COPY OF SALE DEED NO.1666 OF 2014 DATED 03.04.2014. Exhibit P3A TRUE COPY OF PURCHASE DEED NO.1665 OF 2014 DATED 03.04.2014. Exhibit P4 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 21.12.2021. Exhibit P4 A TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT NO.615733031301221. Exhibit P4 B TRUE COPY OF THE E-MAIL ACKNOWLEDGEMENT OF EXT:P4(A) DATED 30.12.2021. Exhibit P5 TRUE COPY OF THE NOTICE ISSUED BY 1% RESPONDENT TO THE PETITIONER DATED 12.03.2022. Exhibit P5 A TRUE COPY OF THE E-MAIL COMMUNICATION DATED 12.03.2022. Exhibit P6 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT NO.39467131210322. Exhibit P6 A TRUE COPY OF THE E-MAIL RESPONSE OF EXT:P6 DATED 21.03.2022. Exhibit P7 TRUE COPY OF THE COMMUNICATION THROUGH E- MAIL DATED 21.03.2022 SUBMITTED BY THE PETITIONER. Exhibit P8 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 26.03.2022 ISSUED BY 1 ST RESPONDENT. Exhibit P8 A TRUE COPY OF THE E-MAIL RESPONSE OF EXT:PS DATED 26.03.2022. Exhibit P9 . TRUE COPY OF THE FINAL ASSESSMENT ORDER DATED 29.03.2022. Exhibit P10 TRUE COPY OF THE JUDGEMENT IN W.P.(C) NO.6158 OF 2021 DATED 10.03.2022. Exhibit P10 A TRUE COPY OF THE JUDGEMENT IN W.P.(C) NO.9852 OF 2022 DATED 22.04.2022. "