Dr. Thomas Antony V. The Assessing Officer, Office of the Income Tax Officer, Ward-2 (1), Thrissur

WP(C)/1900/2020

AI Insights

The case involves two writ petitions filed by Dr. Thomas Antony against the Income Tax Officer, Ward-2(1), Thrissur, challenging the reopening of his income tax assessments for the years 2016-17 and 2017-18. The petitioner argued that the reasons for reopening were not provided in a timely manner, violating the principles of natural justice as upheld by various Supreme Court and High Court judgments. The court agreed with the petitioner, noting that the Assessing Officer had not allowed adequate time for the petitioner to respond before finalizing the assessments on the same day the reasons were disclosed. Consequently, the court set aside the assessment orders and remitted the cases for fresh consideration.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 798865 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-02-2020
• Assessment Year: misc
• Other Referred Cases: Supreme Court Judgment on Reopening of Assessment
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; R SREEJITH; GOKULRAJ; ARYA ANIL; SRI HARINI
• Keywords: Assessment Reopening; Income Tax; Natural Justice; Violation of Principles
• Section: 142(1); 271(1)(c); 44AD; 270A; 44ADA

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, THE 05TH DAY OF FEBRUARY 2020 / 16TH MAGHA, 1941 WP(C).No.1900 OF 2020(J) PETITIONER: DR.THOMAS ANTONY, AGED 46 YEARS 35/5226, KANCHAI HOUSE, SKYLINE IRIS GARDEN, HOUSE NO.2, AVENUE ROAD, MISSION QUARTERS, MUNDUPALAM , THRISSUR 680 006. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SHRI.GOKULRAJ L. SMT. ARYA ANIL SMT.SRI HARINI S.P. RESPONDENT: THE ASSESSING OFFICER OFFICE OF THE INCOME TAX OFFICER, WARD-2 (1) THRISSUR 680 001. OTHER PRESENT: SRI.JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.02.2020, ALONG WITH WP(C).1920/2020(L), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No. 1900 & 1920 of 2020 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS WEDNESDAY, THE 05TH DAY OF FEBRUARY 2020 / 16TH MAGHA, 1941 WP(C).No.1920 OF 2020(L) PETITIONER: DR. THOMAS ANTONY AGED 46 YEARS 35/5226, KANCHAI HOUSE, SKYLINE IRIS GARDEN, HOUSE NO. 2, AVENUE ROAD, MISSION QUARTER, MUNDUPALAM , THRISSUR 680 006. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SMT. ARYA ANIL SHRI.GOKULRAJ L. SMT.SRI HARINI S.P. RESPONDENT: THE ASSESSING OFFICER OFFICE OF THE INCOME TAX OFFICER, WARD -2 (1), THRISSUR 680 001. OTHER PRESENT: SRI.JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.02.2020, ALONG WITH WP(C).1900/2020(J), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No. 1900 & 1920 of 2020 3 ALEXANDER THOMAS, J. ======================= W.P.(C). No. 1900 & 1920 of 2020 ======================= Dated this the 5th day of February, 2020 J U D G M E N T The factual aspects projected in writ petition (civil) No. 1900 of 2020 are as follows; “ The petitioner filed returns under the Income Tax Act and offered income. The Respondent sought to reopen the assessment, the reasons for re-opening which was sought, for was not furnished. Several reminders were given asking for reasons for reopening in terms of Judgment of the Supreme Court. However, for the reasons best known, the same was forwarded to the petitioner on 30.12.2019 at 2.37 PM and the assessment also competed on the same day. Therefore, this writ petition as being violative of Judgment of the Supreme Court and of the various High Courts ”. It is in the above facts and circumstances that the petitioner has filed the afore captioned writ petition (civil) for the following prayers; “i) Call for the records leading to issuance of Ext.P7 order and quash the same by issuing a writ of certiorari; ii) Pending hearing and final disposal of the writ petition, this Hon'ble Court be pleased togrant stay of recovery of tax due under Exhibit P7; WPC No. 1900 & 1920 of 2020 4 iii) To issue such other and further reliefs as this Hon'ble Court may deem fit and proper in the interest of justice.” The factual aspects projected in the writ petition (civil) No. 1920 of 2020 are as follows; “ The petitioner filed returns under the Income Tax Act and offered income under Sec.44AD r/w Sec.44ADA. The respondent sought to reopen the assessment, the reasons for re-opening which was sought for was not furnished. Several reminders were given asking for reasons for reopening in terms of Judgment of the Supreme Court. However, for the reasons best known, the same was forwarded to the petitioner on 30.12.2019 at 3.04 PM and the assessment also completed on the same day. Therefore, this writ petition as being violative of Judgment of the Supreme Court and of the various High Courts.” It is in the light of these facts and circumstances that the petitioner has filed the afore captioned writ petition (civil) with the following prayers; “i) Call for the records leading to issuance of Ext.P7 order along with Exhibit P9 and quash the same by issuing a writ of certiorari; ii) Pending hearing and that disposal of the writ petition, this Hon'ble Court be pleased to grant stay of recovery of tax due under Exhibit P7. iii) To issue such other and further reliefs as this Hon'ble Court may deem fit and proper in the interest of justice.” WPC No. 1900 & 1920 of 2020 5 3. Heard Sri. Anil D Nair, learned counsel appearing for the petitioner in these two cases and Sri. Jose Joseph, learned Standing Counsel for the Income Tax Department, Government of India, appearing for the sole respondent, Assessing Officer in these two cases. 4. The facts in these cases are broadly similar. The petitioner has got a case that the grounds for re-opening the assessment was let known to him by the respondent, Assessing Officer, only on 30.12.2019 at about 03.04 pm, in the case in W.P.(C) No. 1920 of 2020 and on the same day, at about 02.37 pm, in the case in W.P.(C) No. 1900 of 2020. Further, both the petitioner would point out that immediately thereafter, the respondent Assessing Officer has passed orders finalizing the assessment proceedings as per impugned Ext. P7 in W.P.(C) No. 1900 of 2020 as well as Ext. P7, as corrected by Ext. P9 corrigendum in W.P.(C) No. 1920 of 2020. Without getting the merits of the aspects relating to the impugned assessment orders, it is only to be held that the above said decision making process of the respondent Assessing Officer in not granting sufficient time to the petitioner Assessee concerned in these two cases for responding to the grounds of appeal and then so as to enable them to formulate a reasonable defence of the matter, has WPC No. 1900 & 1920 of 2020 6 been curtailed and therefore, the impugned decision making process in these cases are tainted by violation of the elementary principles of natural justice and fairness. Solely on account of the said ground of violation of principles of natural justice it is only to be ordered that the impugned assessment orders are illegal and ultra vires. In that view of the matter, this Court is of the view the matter rquires serious reconsideration in the hands of the respondent Assessing Officer and the matter warrants a remit. For effectuating such a remit, it is ordered that the impugned Ext. P7 order in W.P.(C). No. 1900 of 2020 and impugned Ext. P7 order as corrected by impugned Ext. P9 corregndium proceedings in W.P.(C) No. 1920 of 2020 will stand set aside and the matters in relation to assessment in these two cases will stand remitted to the respondent Assessment Officer for consideration and decision fresh. 5. In case the respondent Assessing Officer is relying only on the above said proposed grounds of interference as intimated to the petitioners earlier, then no further such informati0n need be given. However, in case the respondent Assessing Officer is proposing to take into consideration any additional aspects, then such additional aspects may also be immediately notified to the respective petitioners in these two cases. In case any such WPC No. 1900 & 1920 of 2020 7 additional grounds are so intimated to the petitioners by the respondent Assessing Officer, the respective petitioners concerned may give their written submission in the matter along with any supporting materials for aiding their contentions in that regard. This may be done by the petitioners without much delay. The respondent Officer will thereafter issue notice of hearing to the petitioners and will afford reasonable opportunity of being heard to the respective petitioners concerned through their respective authorized representative/counsel, if any, and then will pass orders on the respective assessment proceedings, duly finalizing the same without much delay. The entire process in this regard may be duly completed and finalized by the respondent Assessing Officer without much delay preferably within a period of 3 to 4 months from the date of production of a certified copy of judgment. With these observations and directions, the above Writ Petitions (Civil) stand finally disposed of. (Sd/-) ALEXANDER THOMAS JUDGE LU WPC No. 1900 & 1920 of 2020 8 APPENDIX OF WP(C) 1900/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF NOTICE DATED 26.3.2019 FOR THE 2016-17 WAS ISSUED BY THE RESPONDENT. EXHIBIT P2 TRUE COPY OF THE LETTER DATED 24.4.2019 ALONG WITH ACKNOWLEDGEMENT OF THE RETURN FILED BY THE PETITIONER. EXHIBIT P3 TRUE COPY OF THE NOTICE DATED 11.7.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P4 TRUE COPY OF THE REPLY DATED 10.8.2019 FILED BY THE PETITIONER. EXHIBIT P5 TRUE COPY OF THE NOTICE UNDER SEC. 142(1) 28.11.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P6 TRUE COPY OF THE NOTICE DATED 30.12.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P7 TRUE COPY OF THE ORDER DATED 30.12.2019 FOR THE 21016-17 WAS ISSUED BY THE RESPONDENT. EXHIBIT P8 TRUE COPY OF THE NOTICE UNDER SEC. 271(1) (C) DATED 30.12.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P9 TRUE COPY OF THE CIRCULAR NO. 19/2019 DATED 14.08.2019 ISSUED BY THE CBDT. WPC No. 1900 & 1920 of 2020 9 APPENDIX OF WP(C) 1920/2020 PETITIONER'S/S EXHIBITS: EXHIBIT P1 TRUE COPY OF NOTICE DATED 26.3.2019 FOR THE 2017-18 WAS ISSUED BY THE RESPONDENT. EXHIBIT P2 TRUE COPY OF THE LETTER DATED 24.4.2019 ALONG WITH ACKNOWLEDGEMENT OF THE RETURN FILED BY THE PETITIONER. EXHIBIT P3 TRUE COPY OF THE NOTICE DATED 11.7.2019 WAS ISSUED BY THE PETITIONER. EXHIBIT P4 TRUE COPY OF THE REPLY DATED 10.8.2019 FILED BY THE PETITIONER. EXHIBIT P5 TRUE COPY OF THE NOTICE UNDER SEC. 142(1) 28.11.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P6 TRUE COPY OF THE NOTICE DATED 30.12.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P7 TRUE COPY OF THE ORDER DATED 30.12.2019 FOR THE 2017-18 WAS ISSUED BY THE RESPONDENT. EXHIBIT P8 TRUE COPY OF THE NOTICE UNDER SEC. 270A DATED 30.12.2019 WAS ISSUED BY THE RESPONDENT. EXHIBIT P9 TRUE COPY OF THE CORRIGENDUM DATED 7.1.2020 WAS EXHIBIT P10 TRUE COPY OF THE CIRCULAR NO. 19/2019 DATED 14.8.2019 ISSUED BY THE CBDT. // True Copy // PA To Judge "