Haridas V. Income Tax Officer, Ward-1, Kalpetta and The Principal Commissioner of Income Tax and Income Tax Appellate Tribunal, Cochin Bench

WP(C)/7064/2024

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The case involves Haridas, a real estate businessman, who did not file income tax returns for the assessment year 2014-15 despite having sold a property and engaged in other transactions. The Income Tax Department reopened his case under Section 147 of the Income Tax Act, 1961, issued notices under Sections 148 and 142(1), and completed the assessment ex-parte under Section 144 due to non-cooperation from Haridas. The assessment added a substantial income to his account, leading to tax, interest, and penalty demands. Haridas appealed against the assessment order, which was dismissed, and subsequently filed a writ petition seeking to stay the recovery of dues and expedite the appeal process at the Income Tax Appellate Tribunal. The court dismissed the writ petition, citing non-cooperation from Haridas in the assessment and appellate processes.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 808010 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-02-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR
• Assessee Lawyers: S RAJ
• Keywords: Assessment Order; Income Tax; Non-cooperation; Stay Petition; Writ of Mandamus
• Section: 147; 148; 144; 142(1)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 23RD DAY OF FEBRUARY 2024 / 4TH PHALGUNA, 1945 WP(C) NO. 7064 OF 2024 PETITIONER: HARIDAS, AGED 58 YEARS MANGALATH HOUSE, POTHOOR P.O, KALPETTA, WAYANAD, PIN - 673121 BY ADV S.ARUN RAJ RESPONDENTS: 1 INCOME TAX OFFICER, WARD-1, KALPETTA, SULTHAN BATHERY ROAD, KAINATTY, KALPETTA, WAYANAD, PIN - 673122 2 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN - 673001 3 INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, KENDRIYA BHAVAN,KAKKANAD, ERNAKULAM,COCHIN, PIN - 682030 P.G. JAYASHANKAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No 7064 of 2024 2 JUDGMENT Dated this the 23rd day of February, 2024 The present writ petition has been filed by the petitioner seeking the following reliefs: (i) To issue a writ of mandamus directing the 3rd respondent – Income Tax Appellate Tribunal, Cochin Bench, Cochin to consider and pass orders on Exhibit P3 appeal and /or Exhibit P4 stay petition for the AY 2014-15, as expeditiously as possible, at any rate within a time limit as may be fixed by this Honourable Court. (ii) To issue a writ of mandamus directing the 1st and 2nd respondents/income tax department not to take any further proceedings based on Exhibit P1 assessment order for the AY 2014-15 pending final disposal of Exhibit P3 statutory appeal/Exhibit P4 stay petition by the 3rd respondent (iii) To issue such other appropriate writ, order or directions as this Hon’ble Court may deem just and proper to issue in the facts and circumstances of the case. 2. The assessment year is of 2014-15. The petitioner, who is an assessee under the provisions of the Income Tax Act, 1961 (hereinafter referred to as ‘I.T Act,1961’) is in the business of real estate. The petitioner did not file returns of his income for the assessment year 2014-15. As per the ITS information it was noticed that the assessee had sold a landed property of an extent 5.67 WPC No 7064 of 2024 3 ares of land for a sale consideration of Rs.49,19,000/- on 25.04.2013. The petitioner had also purchased certain other properties during the financial year relevant to the assessment year 2014-15. In view thereof, the petitioner’s case was re-opened under Section 147 of the I.T Act, 1961. 3. Notice under Section 148 was issued to the petitioner on 09.01.2018 after taking prior approval from the Joint Commissioner of the Income Tax of the concerned Range. Physical copy of the said notice was served on the petitioner on 16.01.2018 besides on the portal and email. The petitioner choose not to file return of his income, despite the service of notice. Further notice under Section 142(1) was issued and served on the petitioner on 04.09.2018. Physical copy of the same was also served on the petitioner on 11.09.2018. The petitioner did not give any response to the said notice as well. The petitioner was not co-operating with the departmental proceedings nor furnishing any details in respect of the income generated from the sale of the WPC No 7064 of 2024 4 property and therefore, it was decided to complete the assessment based on the materials available with the department under Section 144 of the I.T Act,1961. The total income of Rs.78,13,969/- was added to the return nil income on which the tax interest have been demanded and the penalty proceedings have been initiated. 4. The petitioner had filed appeal against the said assessment order. However, the appeal came to be dismissed vide Ext.P2 order, against which the petitioner has filed appeal before the Income Tax Appellate Tribunal. Despite the huge liability of the tax, the petitioner had not deposited a single penny. Besides the liability of tax of Rs. 46,57,980/-, there are interest and penalty. The petitioner now wants this Court to stay the recovery of the dues as per the assessment order. This Court finds no ground to grant any indulgence to the petitioner. The petitioner has not co-operated in completion of the assessment proceedings, even the appellate order was rendered ex-parte. Such petitioner is WPC No 7064 of 2024 5 not entitled for any relief from this Court. Therefore, the writ petition is hereby dismissed. However, despite the dismissal of this writ petition, the Income Tax Appellate Tribunal should consider the stay petition filed along with the appeal expeditiously. Sd/- DINESH KUMAR SINGH JUDGE AP WPC No 7064 of 2024 6 APPENDIX OF WP(C) 7064/2024 PETITIONER EXHIBITS Exhibit P-1 TRUE COPY OF THE ASSESSMENT ORDER DATED 21- 11-2018 UNDER SECTION 144 R.W.S 147 OF THE ACT FOR THE AY 2014-15 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT Exhibit P-2 TRUE COPY OF ORDER DATED 17-3-2023 PASSED BY THE CIT (APPEALS), NFAC, DELHI FOR THE AY 2014-15 Exhibit P-3 TRUE COPY OF THE SECOND APPEAL DATED 8-1- 2024 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15 ALONG WITH THE DELAY CONDONATION PETITION Exhibit P-4 TRUE COPY OF THE STAY PETITION DATED 19-2- 2024 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT FOR THE AY 2014-15 "