HOME STONE, V. THE INCOME TAX OFFICER,

WP(C)/14374/2023

AI Insights

The case involves Home Stone, represented by its managing partner Muhammed Insamul Haque T.K, who filed a writ petition against the Income Tax Officer, Tirur, challenging the orders and notice issued following a show cause notice under Section 148(b) of the Income Tax Act. The petitioner argued that the subsequent orders and notice were issued without considering their reply and supporting documents, thus violating the principles of natural justice. The respondent conceded that the reply and documents were not considered, leading to the court's decision to set aside the orders and direct a fresh reconsideration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 676246 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 06-06-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: K M FIROZ
• Keywords: Income Tax; Natural Justice; Quash order; Show cause notice
• Section: 148; 148A(b); 148A(d); 148(b)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.S.DIAS TUESDAY, THE 6TH DAY OF JUNE 2023 / 16TH JYAISHTA, 1945 WP(C) NO. 14374 OF 2023 PETITIONER: HOME STONE, 22/684 OF MOONIYUR GRAMA PANCHAYAT, THAZHE CHELARI, VELIMUKKU POST, MALAPPURAM DISTRICT, KERALA, INDIA -676317 REPRESENTED BY ITS MANAGING PARTNER MUHAMMED INSAMUL HAQUE T.K, S/O. HASSANKUTTY, AGED 31 YEARS 'THEERAM', PAINGOTTUR, CALICUT UNIVERSITY POST, MALAPPURAM DISTRICT-, PIN - 673635 BY ADV K.M.FIROZ RESPONDENT: THE INCOME TAX OFFICER, OFFICE OF THE INCOME TAX OFFICER, WARD NO 2, TIRUR, INCOME TAX OFFICE, NO 20/1240. TARIFF BAZAR, TOWN HALL ROAD, TIRUR, KERALA, PIN - 676101 BY ADV CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.06.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.14374 of 2023 2 JUDGMENT Dated this the 6th day of June, 2023 The writ petition is filed to quash Exts.P5 order and P6 notice passed by the respondent. 2. The petitioner's case is that pursuant to Ext.P1 show cause notice issued under Section 148(b) of the Income Tax Act, the petitioner has submitted a reply seeking enlargement of time to submit a detailed reply. The respondent issued Ext.P2 communication granting time to the petitioner till 05.04.2023, which is evident by Ext.P3. The petitioner submitted its reply along with ten documents as can be seen from Ext.P4 proceedings. However, the respondent, without adverting to the reply and the documents submitted by the petitioner, has passed Ext.P5 order and thereafter issued Ext.P6 consequential notice. Exts.P5 and P6 are passed in violation of the principles of natural justice and is arbitrary and WPC No.14374 of 2023 3 capricious. Hence, the writ petition. 3. Heard; Sri.K.M Firoz, the learned Counsel appearing for the petitioner and Sri.Christopher Abraham, the learned Standing Counsel appearing for the respondent. 4. Sri.K.M Firoz, reiterated the contentions in the writ petition. 5. Learned Standing Counsel appearing for the respondent submitted that as the respondent has not considered the reply as well as the documents filed by the petitioner, Exts.P5 and P6 can be set aside, directing the respondent to reconsider the matter a fresh. 6. Having considered the pleadings and materials on record and taking note of the fact that the respondent has not considered the reply as well as the documents produced by the petitioner, I deem it appropriate to dispose of the writ petition in the following manner: (i) Exts.P5 and P6 are set aside. WPC No.14374 of 2023 4 (ii) The respondent is directed to consider and finalize Ext.P1 notice after adverting to the objections raised by the petitioner along with the documents, in accordance with law, as expeditiously as possible at any rate within a period of three months from the date of receipt of a certified copy of this judgment. Sd/- C. S. DIAS JUDGE AP/06-06 WPC No.14374 of 2023 5 APPENDIX OF WP(C) 14374/2023 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF SHOW CAUSE NOTICE DATED 18- 3-2023 ISSUED BY THE RESPONDENT TO THE PETITIONER UNDER SECTION 148A(B) OF THE INCOME TAX ACT Exhibit P2 A TRUE COPY OF THE COMMUNICATION DATED 29- 3-2023 ISSUED BY THE RESPONDENT GRANTING EXTENSION OF TIME TO THE PETITIONER TILL 5- 4-2023 Exhibit P3 A TRUE COPY OF THE REPLY / RESPONSE DATED 5-4-2023 SUBMITTED BY THE PETITIONER BEFORE THE RESPONDENT Exhibit P4 A TRUE COPY OF THE ONLINE GENERATED E- PROCEEDINGS RESPONSE ACKNOWLEDGEMENT ACKNOWLEDGING THE RECEIPT OF THE RESPONSE SUBMITTED ON 5-4-2023 (ALONG WITH VIEW RESPONSE TO NOTICE) Exhibit P5 A TRUE COPY OF THE ORDER DATED 10-4-2023 ISSUED UNDER SECTION 148A(D) OF THE INCOME TAX ACT BY THE RESPONDENT Exhibit P6 A TRUE COPY OF THE NOTICE UNDER SECTION 148 OF INCOME TAX ACT, 1961 DATED 10-4-2023 ISSUED BY THE RESPONDENT TRUE COPY P.A.TO JUDGE "