M/S. ELECTRICAL TRADE LINKS V. PRINCIPAL COMMISSIONER OF INCOME TAX

WP(C)/10673/2023

AI Insights

The case involves M/s. Electrical Trade Links, a petitioner represented by its managing partner, who sought judicial intervention to rectify a clerical error in their income tax return for the assessment year 2007-08. The error involved the misreporting of total income as Rs.16,22,245 instead of the correct amount, Rs.1,62,245, leading to an unduly high tax demand. The petitioner had previously filed a rectification application (Ext.P3) to correct this error, which was still pending decision at the time of the writ petition. The respondents included various officials from the Income Tax Department, who were responsible for the assessment and collection of the disputed tax.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 769909 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-03-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: PREETHA NAIR
• Keywords: Demand notice; Income Tax; Intimation; Rectification Application
• Section: 44AB; 226

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI MONDAY, THE 27TH DAY OF MARCH 2023 / 6TH CHAITHRA, 1945 WP(C) NO. 10673 OF 2023 PETITIONER: M/S. ELECTRICAL TRADE LINKS 39/1943A, KALOOR-KADAVANTHARA ROAD,ERNAKULAM, KOCHI REPRESENTED BY ITS MANAGING PARTNER PREMKUMAR.R., PIN – 682017. BY ADV PREETHA S.NAIR RESPONDENTS: 1 PRINCIPAL COMMISSIONER OF INCOME TAX REVENUE BUILDING, I.S.PRESS ROAD, KOCHI, PIN – 682018. 2 THE INCOME TAX OFFICER WARD-2(2), REVENUE BUILDING, I.S.PRESS ROAD, KOCHI, PIN – 682018. 3 THE INCOME TAX OFFICER NON-COOPERATE WARD-1(1), REVENUE BUILDING, I.S. PRESS ROAD, KOCHI, PIN – 682018. 4 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, (NFAC),DELHI -110 002. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10673 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.10673 of 2023 -------------------------------------------- Dated this the 27th day of March, 2023 JUDGMENT Admit. Standing Counsel takes notice for the respondents. 2. The petitioner has sought for quashing Ext.P2 intimation and Ext.P8 demand notice and for a direction to the respondents to pass an order on Ext.P3 rectification application. The case of the petitioner is that, instead of showing the total income as Rs.1,62,245/-, a mistake crept into the returns by stating it as Rs.16,22,245/-. It is submitted that the result of the said mistake is an unduly high demand against the petitioner for which the petitioner is not liable. It is in these circumstances, the petitioner had preferred the rectification application. In view of the limited prayer made, this writ petition is disposed of directing the respondents to consider and pass orders on Ext.P3 rectification application at the earliest, at any rate, within four months from the date of receipt of a copy of this WP(C) NO. 10673 OF 2023 3 judgment. The coercive steps for enforcing the demand in Ext.P2 shall be kept in abeyance till disposal of Ext.P3 application. Sd/- T.R.RAVI JUDGE mpm WP(C) NO. 10673 OF 2023 4 APPENDIX OF WP(C) 10673/2023 PETITIONER’S EXHIBITS Exhibit P1 A TRUE COPY OF THE INCOME TAX RETURN VERIFICATION FORM ITR-V FOR THE ASSESSMENT YEAR 2007-08 DATED 28-06- 2008. Exhibit P2 A TRUE COPY OF THE INTIMATION DATED 31-03-2010. Exhibit P3 A TRUE COPY OF THE RECTIFICATION APPLICATION DATED 26-04-2010. Exhibit P4 A TRUE COPY OF THE INCOME TAX COMPUTATION STATEMENT FOR THE ASSESSMENT YEAR 2007-08. Exhibit P5 A TRUE COPY OF THE BALANCE SHEET AS ON 31-03-2007. Exhibit P6 A TRUE COPY OF THE TRADING & PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-03- 2007. Exhibit P7 A TRUE COPY OF THE AUDIT REPORT U/S. 44AB OF THE INCOME TAX ACT, FORM 3CB. Exhibit P8 A TRUE COPY OF THE NOTICE U/S. 226 OF THE INCOME TAX ACT DATED 17-01-2019. Exhibit P9 A TRUE COPY OF THE REPLY DATED 21-01- 2019. Exhibit P10 A TRUE COPY OF THE FORM 35 DATED 21-01-2019. Exhibit P11 A TRUE COPY OF THE 4 TH RESPONDENT'S ORDER DATED 18/10/2022. "