Heartwares Medicals India Private Limited V. Assessment Unit, Income Tax Department, National Faceless Assessment Centre (NFAC), New Delhi

WA/2100/2023

AI Insights

The case involves Heartwares Medicals India Private Limited, which appealed against the judgment of the learned Single Judge dismissing their writ petition challenging an assessment order under sections 143(3) and 144B of the Income Tax Act, 1961. The assessment included an addition under Section 68 amounting to \'6,96,31,355/- and was assessed at a higher rate under Section 115BBE. The appellant argued that the assessment was contrary to the statute and violated principles of natural justice. The High Court of Kerala, after hearing both parties, decided not to interfere with the learned Single Judge's decision, emphasizing the availability of a statutory appellate remedy.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 681270 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P R KUMAR
• Assessee Lawyers: ANIL NAIR; ANJANA BIJU; TELMA RAJU
• Keywords: Assessment Order; Natural Justice; Writ Appeal; Statutory appellate remedy
• Section: 143(3); 68; 246A; 115BBE; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE DR. JUSTICE KAUSER EDAPPAGATH WEDNESDAY, THE 6TH DAY OF DECEMBER 2023/15TH AGRAHAYANA, 1945 WA NO. 2100 OF 2023 AGAINST THEJUDGMENT WP(C) 2789/2023 OF HIGH COURT OF KERALA APPELLANT/PETITIONER: HEARTWARES MEDICALS INDIA PRIVATE LIMITED, DOOR NO.3/1008-B, IMA HALL ROAD, NADAKKAVU, CALICUT KERALA, INDIA-673011. REPRESENTED BY ITS MANAGING DIRECTOR MR.SHIHABUDEEN.K. NEW ADDRESS HEARTWARES MEDICALS INDIA PRIVATE LIMITED DOOR NO.3/1008-B, IMA HALL ROAD, NADAKKAVU, CALICUT, KERALA, INDIA REPRESENTED BY ITS MANAGING DIRECTOR MR.SHIHABUDEEN.K., PIN - 673011 BY ADVS.ANIL D. NAIR ANJANA A. P.K.BIJU TELMA RAJU RESPONDENT/RESPONDENT: ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), NEW DELHI, PIN - 110001 BY ADV. P.R.AJITH KUMAR, SC THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 06.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WA No.2100/2023 -:2:- J U D G M E N T Dr. Kauser Edappagath, J. This writ appeal has been filed challenging the judgment of the learned Single Judge in WP(c) No.2789/2023 dated 22/11/2023. 2. The appellant is the writ petitioner. The writ petition was filed challenging the assessment order completed u/s 143(3) r/w 144B of the Income T ax Act, 1961 (for short, 'the IT Act'), on the premises that the addition made under Section 68 of `6,96,31,355/- and assessed at a higher rate u/s 115BBE was against the provisions of the statute and in violation of the principles of natural justice. After hearing both sides, the learned Single Judge dismissed the writ petition, relegating the appellant to the statutory appellate remedy. It is challenging the said judgment; the appellant is before us. 3. We have heard Sri.Anil D. Nair, the learned counsel for the appellant and Sri.P.R.Ajith Kumar, the learned standing WA No.2100/2023 -:3:- counsel for the Income T ax Department. 4. The appellant has a statutory remedy of appeal against the assessment order. Instead of exhausting the remedy, the appellant rushed to this court with a writ petition. The appellant was put to notice, and after that, the assessment proceedings were completed. In exercising the power of judicial review under Article 226 of the Constitution of India, this court cannot consider the merits of the assessment order. We do not find that the impugned assessment order is without jurisdiction or that there has been any violation of the principles of natural justice. Hence, the learned Single Judge was absolutely justified in relegating the appellant to the statutory appellate remedy. We find no reason to interfere with the said judgment. The time granted by the learned Single Judge to prefer the appeal is already over. In these circumstances, we permit the appellant to file an appeal under Section 246A of the IT Act before the Appellate Authority against the impugned assessment order within a period of one week from today. The appellant is also free to file an application for stay. If such an appeal and stay WA No.2100/2023 -:4:- application are filed, the Appellate Authority is directed to consider and dispose of either the appeal itself or the stay application within a period of one month from the receipt of the same after hearing both sides. Needless to say, during the said period of one month, recovery proceedings against the appellant for recovery of the amounts confirmed by the assessment order shall be kept in abeyance. The writ appeal stands disposed with the above observation. Sd/- DR. A.K.JAYASANKARAN NAMBIAR JUDGE Sd/- DR. KAUSER EDAPPAGATH JUDGE Rp "