Chalakkal Antony Jose Valloor V. The Additional/ Joint/ Deputy/ Assistant Commissioner of Income Tax/ Income-Tax Officer, National Faceless Assessment Centre and The National Faceless Appeal Centre (NFAC) and The Commissioner of Income-Tax and The Income-Tax Officer Ward 2(1), Thrissur

WP(C)/37397/2023

AI Insights

The case involves Chalakkal Antony Jose Valloor, the petitioner, who is an assessee under the Income Tax Act, 1961 and operates an advertising agency. The petitioner did not file a return of income for the assessment year 2017-18 despite significant financial transactions. Consequently, notices under Sections 148 and 142(1) of the Act were issued, but the petitioner failed to respond adequately, leading to a best judgment assessment of income and tax demand. Aggrieved by the assessment, the petitioner filed an appeal and a stay application, which are pending before the National Faceless Appeal Centre. The petitioner sought a writ of mandamus to halt coercive proceedings based on the assessment order until the appeal and stay application were resolved. The court, exercising its jurisdiction, directed the appellate authority to expedite the decision on the stay application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 680148 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 20-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR; PGJ GIRI
• Assessee Lawyers: NITISH SHENOY; SUKUMARAN OOMMEN; SHERRY OOMMEN; M S MUHAMMEDU; SREELEKSHMI BEN
• Keywords: Assessment Order; Best Judgment Assessment; Coercive Proceedings; Financial transactions; Financial transactions; Non compliance; Stay Application; Writ of Mandamus
• Section: 147; 148; 144; 142(1); 194A; 139; 44AB; 194C; 271B; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 20TH DAY OF DECEMBER 2023 / 29TH AGRAHAYANA, 1945 WP(C) NO. 37397 OF 2023 PETITIONER/S: CHALAKKAL ANTONY JOSE VALLOOR AGED 57 YEARS S/O ANTONY CHALAKKAL HOUSE, PUTHENPEEDIKA , ANTHIKAD, PIN - 680642 BY ADVS. NITISH SATHESH SHENOY SUKUMAR NAINAN OOMMEN SHERRY SAMUEL OOMMEN M.S.INSAAF MUHAMMEDU SREELEKSHMI BEN RESPONDENT/S: 1 THE ADDITIONAL/ JOINT/ DEPUTY/ ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, 4TH FLOOR, MAYUR BHAWAN, CONNAUGHT CIRCUS, NEW DELHI., PIN - 110001 2 THE NATIONAL FACELESS APPEAL CENTRE (NFAC) MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA, NEW DELHI -REPRESENTED BY ITS COMMISSIONER, PIN - 110001 3 THE COMMISSIONER OF INCOME-TAX AAYAKAR BHAVAN, ST NAGAR, TRICHUR, PIN - 680001 4 THE INCOME-TAX OFFICER WARD 2(1), THRISSUR, AAYAKAR BHAVAN, INCOME TAX OFFICE, SHAKTHANTHAMPURAN NAGAR, THRISSUR, KERALA, WP(C) NO. 37397 OF 2023 2 PIN - 680001 BY ADVS. ADV. P.G. JAYASHANKAR PGJ KEERTHIVAS GIRI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 37397 OF 2023 3 J U D G M E N T The present writ petition has been filed seeking various prayers, including the prayer for a writ of mandamus commanding the respondents to keep in abeyance coercive proceedings pursuant to Ext.P13 assessment order pending disposal of Ext.P14 appeal and Ext.P17 stay application, etc. 2. The petitioner is an assessee under the provisions of the Income Tax Act, 1961 (“Act”, for short) and is engaged in carrying out the business of an advertising agency under the name and style “Yesgo Advertising Media”. The petitioner did not file return of its income under Section 139 of the Act for the assessment year 2017-18. As per the information made available through AIMS module in ITBA system of the Income Tax Department, it was noticed that the assessee was involved in huge financial transactions during the relevant assessment year, including the contractual receipts under Section 194C of Rs.2,31,56,103/-, interest WP(C) NO. 37397 OF 2023 4 earned during the year under Section 194A of Rs.28,310/-, besides other receipts. The petitioner-assessee had received commission/ brockerage of Rs.74,556/-, professional/technical receipts of Rs.8,160/-, cash payments for the goods and services of Rs.1,70,21,696/- and cash deposit of Rs.1,85,75,208/-. 3. The petitioner neither filed ITR nor furnished report of audit in prescribed Form before the due date as prescribed under the provisions of Section 44AB of the Act. 4. A notice under Section 148 of the Act was issued to the petitioner on 31.3.2021 directing him to file return within a period of 30 days from the service of the notice. Despite receipt of the said notice, the petitioner did not file his return of income in compliance of the notice under Section 148 of the Act. Thereafter, notice dated 16.7.2021 under Section 142(1) of the Act was issued. But, no response came from the petitioner in response to the said notice under Section 142(1) of the Act. WP(C) NO. 37397 OF 2023 5 5. The assessment order would disclose that though the petitioner was granted several opportunities to file return and give response to the notices, but the petitioner failed to do so. In view thereof, best judgment assessment was carried out and total assessed income was determined as Rs.3,85,42,019/- on which tax has been demanded and order has been passed for proceeding for penalty under Section 271B of the Act. 6. Aggrieved by the said assessment order, the petitioner has filed appeal on 3.8.2022, along with an application for stay, which are pending before the 2nd respondent. 7. The petitioner has approached this Court in the present writ petition as this Court is exercising the parallel jurisdiction with the appellate authority. But, no such jurisdiction can be exercised under Article 226 of the Constitution of India. However, it is incumbent upon the WP(C) NO. 37397 OF 2023 6 appellate authority to decide the stay application of the petitioner, at the earliest. 8. In view of the above, the present writ petition is disposed of with direction to the 2nd respondent to consider and pass appropriate orders on the stay application, Ext.P17, pending before it, in accordance with law, preferably within a period of two months. Pending interlocutory application, if any, in the writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 37397 OF 2023 7 APPENDIX OF WP(C) 37397/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 31.03.2021 UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961 FOR THE ASSESSMENT YEAR (AY) 2017-2018 Exhibit P2 TRUE COPY OF THE NOTICE DATED 16.07.2021 ISSUED UNDER SECTION 142(1) OF THE ACT Exhibit P3 TRUE COPY OF THE ACKNOWLEDGMENT OF THE PETITIONER'S REPLY DATED 18.08.2021 ALONG WITH THE AUDITED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT FOR AY 2017-2018 Exhibit P4 TRUE COPY OF THE FORM ITR-V FOR AY 2017- 2018 Exhibit P5 TRUE COPIES OF THE NOTICE DATED 03.12.2021 ISSUED UNDER SECTION 142(1) Exhibit P6 TRUE COPY OF THE ACKNOWLEDGMENT OF THE REPLY THERETO SUBMITTED ON 13.12.2021 Exhibit P7 TRUE COPY OF THE NOTICE DATED 24.02.2022 ISSUED UNDER SECTION 142(1) Exhibit P8 TRUE COPY OF THE ACKNOWLEDGMENT OF THE REPLY SUBMITTED ON 08.03.2022 Exhibit P9 TRUE COPY OF THE SCN DATED 02.03.2022 Exhibit P10 TRUE COPY OF ACKNOWLEDGEMENT TO THE REPLY FILED ON 08.03.2022 Exhibit P11 TRUE COPY OF THE FINAL SCN-CUM-DAO DATED 22.03.2022 WP(C) NO. 37397 OF 2023 8 Exhibit P12 TRUE COPY OF THE ACKNOWLEDGEMENT TO THE REPLY THERETO DATED 24.03.2022 Exhibit P13 TRUE COPY OF THE ASSESSMENT ORDER DATED 26.03.2022 ISSUED UNDER SECTION 147 READ WITH SECTION 144 READ WITH SECTION 144B OF THE ACT ALONG WITH THE ACCOMPANYING DEMAND NOTICE DATED 26.03.2022 Exhibit P14 TRUE COPY OF THE APPEAL FILED ON 03.08.2022 ALONG WITH ITS ACKNOWLEDGMENT RECEIPT Exhibit P15 TRUE COPY OF THE APPLICATION DATED 16.09.2022, FILED ON 26.09.2022. Exhibit P16 TRUE COPY OF THE LETTER DATED 30.09.2022 Exhibit P17 TRUE COPY OF THE STAY PETITION FILED ON 14.10.2022 WITH RESPECT TO THE ASSESSMENT ORDER AND ACCOMPANYING DEMAND NOTICE Exhibit P18 TRUE COPY OF THE E-MAIL DATED 01.11.2022 Exhibit P19 TRUE COPIES OF THE EARLY HEARING APPLICATION DATED 27.10.2022 Exhibit P20 CIRCULAR DATED 29.12.2021 BEARING REFERENCE DETAILS F.NO.279/MISC/M-102/2021-TTJ Exhibit P21 TRUE COPY OF THE OFFICE MEMORANDUM IN F.NO.404/72/93-ITCC DATED 29-02-2016 Exhibit P22 TRUE COPY OF JUDGMENT OF THIS HON'BLE COURT IN WPC 28267 OF 2023 Exhibit P23 TRUE COPY OF JUDGMENT OF THIS HON'BLE COURT IN WPC 28910 OF 2023 "