KATTUR MAHAMOOD, V. UNION OF INDIA,

WP(C)/28493/2022

AI Insights

The case involves Kattur Mahamood, a partner in the partnership firm M/s. Swarnanjali Gold, who challenged an assessment order under the Income Tax Act, 1961 for the assessment year 2013-14. The challenge was based on the claim that the draft assessment order did not have a Document Identification Number (DIN), which is required for all communications post-October 1, 2019, as per the Central Board of Direct Taxes' circular aimed at enhancing transparency and record-keeping in tax administration. The court examined whether the absence of a DIN on the draft assessment order itself invalidated the subsequent proceedings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 732098 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: S MANU; JOSE JOSEPH
• Assessee Lawyers: RAJAKANNAN; M GOPIKRISHNAN NAMBIAR; K MATHAI; JOSON MANAVALAN; KURYAN THOMAS; PAULOSE ABRAHAM
• Keywords: Assessment Order; Document identification number; E-Governance; Faceless assessment; Income Tax
• Section: 147; 148; 143(3); 142(1); 119; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 18TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945 WP(C) NO. 28493 OF 2022 PETITIONER: KATTUR MAHAMOOD, AGED 55 YEARS, KATTUR HOUSE, KADAVATHUR P. O., KADAVATHUR, THALASSERY, KANNUR -670675. BY ADVS. SRI. RAJA KANNAN SRI. M. GOPIKRISHNAN NAMBIAR SRI. K. JOHN MATHAI SRI. JOSON MANAVALAN SRI. KURYAN THOMAS SRI. PAULOSE C. ABRAHAM RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY ITS REVENUE SECRETARY, MINISTRY OF FINANCE, NEW DELHI -110004. 2 ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI- 110003. 3 INCOME TAX OFFICER, WARD 2, AAYAKAR BHAVAN, KONNOTHUMCHAL, CHOVVA P. O., KANNUR -670006. BY ADV. SRI. S. MANU - DEPUTY SOLICITOR GENERAL OF INDIA SRI. JOSE JOSEPH - SC - INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 28493 OF 2022 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No.28493 of 2022 ------------------------- Dated this the 18th day of December, 2023 JUDGMENT 1. The petitioner has approached this Court in the present writ petition impugning Exhibit P-10(a) assessment order dated 13.09.2021 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act, 1961” for short) in respect of the assessment year 2013-14. 2. A search and seizure operation was conducted at the residential office and business premises of Parco Group of Concerns. Said said Concern is engaged in the business of retail jewellery shops under the brand name M/s. Swarnanjali Gold. The petitioner is one of the partners of the partnership firm, M/s. Swarnanjali Gold. The Parco Group of Concerns has eight partnership firms spread over different districts of Ma14labar. 3. It was noticed that the petitioner in the financial year 2012-13, relevant to the assessment year 2013-14 has invested Rs. 14,00,000/- in the partnership firm. The petitioner had not filed return of his income in respect of the said assessment year. The petitioner was issued WP(C) NO. 28493 OF 2022 3 notice on 18.03.2020 under Section 148 and thereafter, notice under Section 142 (1) and finally under Section 148 in response to which the petitioner has filed return. The assessment order under Section 143 (3) read with Section 147 of the Act, 1961 was completed as income of Rs. 14,45,302/- on which the tax of Rs. 7,81,730/- was assessed. 4. The learned Counsel for the petitioner submits that the draft assessment order which was communicated to the petitioner in Exhibit P-10 did not have Document Identification Number (DIN) number and, therefore, the proceedings after draft assessment order are nullity. The petitioner has placed reliance on Exhibit P-14 Circular No. 19/2019 dated 14.08.2019 issued by the Central Board of Direct Taxes. 5. I have considered the submissions and the provision of Exhibit P-14 Circular as well. As the Income Tax Department has moved to E-governance in order to ensure better transparency in the functions of the tax administration and to maintain the records of notice, orders, summons, letter and any correspondence in exercise of power under Section 119 of the Act, 1961 the Board had taken a decision that no communication should be issued by any income tax authority relating to assessment, appeals, orders, statutory or otherwise, etc. after 1st day of October, 2019 unless a computer generated Document Identification Number (DIN) has been allotted and is duly quoted in the WP(C) NO. 28493 OF 2022 4 body of such communication. 6. The draft assessment order has been communicated with the Show Cause Notice in Exhibit P-10 dated 15.09.2021. The communication dated 15.09.2021 in Exhibit P-10 bears DIN number by which the draft assessment order for objection by the petitioner has been issued to him. Therefore, I do not find substance in the submission that since the draft assessment order does not bear the DIN, the subsequent proceedings has been rendered nullity. It is important to note that the communication by which the draft assessment order for the objection has been issued to the petitioner bears the DIN and that is the purpose of Exhibit P-14 Circular. The petitione14r has also filed the objection to the draft assessment order and the petitioner has never raised this objection before the authority concerned. Even otherwise, I do not find substance that the draft assessment order itself does not bear the DIN, the subsequent proceedings have rendered nullity. The present writ petition fails and, therefore, hereby dismissed. Sd/- DINESH KUMAR SINGH JUDGE Svn WP(C) NO. 28493 OF 2022 5 APPENDIX OF WP(C) 28493/2022 PETITIONER'S EXHIBITS EXHIBIT P1 THE TRUE COPY OF THE NOTIFICATION NO. 61/2019/F.NO. 370149/154/ 2019-TPL {S.O. 3264(E)} DATED 12.09.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT EXHIBIT P2 THE TRUE COPY OF THE NOTIFICATION NO. 60/2020/F.NO. 370149/154/ 2019-TPL{S.O. 2745(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT EXHIBIT P3 THE TRUE COPY OF THE NOTIFICATION NO. 61/2020/F.NO. 370149/154/2019-TPL {S.O. 2746(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT EXHIBIT P4 THE TRUE COPY OF THE NOTICE DATED 18.03.2020 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 148 OF THE ACT EXHIBIT P5 THE TRUE COPY OF THE REPLY DATED 12.11.2020 WITH PROOF OF ACKNOWLEDGMENT FROM THE OFFICE OF THE 3RD RESPONDENT EXHIBIT P6 THE TRUE COPY OF THE NOTICE (WITHOUT ANNEXURES) DATED 31.12.2020 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 143(2) READ WITH SECTION 147 OF THE ACT EXHIBIT P7 THE TRUE COPY OF THE NOTICE DATED 29.01.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 142(1) OF THE ACT FOR THE A.Y 2013-14 EXHIBIT P7(a) THE TRUE COPY OF THE NOTICE DATED 22.02.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 142(1) OF THE ACT FOR THE A.Y 2013-14 EXHIBIT P8 THE TRUE COPY OF THE REPLY (WITHOUT ANNEXURES) DATED 26.02.2021 SUBMITTED BY THE PETITIONER EXHIBIT P8(a) THE TRUE COPY OF THE FORM DATED 24.02.2020 FOR RECORDING THE REASONS FOR INITIATING PROCEEDINGS UNDER SECTION 147 OF THE ACT SUBMITTED BY THE 3RD RESPONDENT WP(C) NO. 28493 OF 2022 6 EXHIBIT P8(b) THE TRUE COPY OF THE E-ACKNOWLEDGMENT (DATED NIL) GENERATED IN THE IT PORTAL IN RESPECT OF THE FILING OF EXT. P8 REPLY AND VARIOUS ATTACHMENTS EXHIBIT P9 THE TRUE COPY OF THE COMMUNICATION/LETTER DATED 18.08.2021 ISSUED BY THE 3RD RESPONDENT FOR THE A.Y. 2013-14 EXHIBIT P10 THE TRUE COPY OF THE NOTICE (WITHOUT ANNEXURES) DATED 15.09.2021 ISSUED BY THE 2ND RESPONDENT FOR THE A.Y 2013-14 EXHIBIT P10(a) THE TRUE COPY OF THE DRAFT ASSESSMENT ORDER DATED 13.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 147 OF THE ACT, FOR THE A.Y. 2013-14 EXHIBIT P11 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 22.09.2021 ISSUED BY THE 2ND RESPONDENT FOR A.Y 2013-14 EXHIBIT P12 THE TRUE COPY OF THE NOTICE OF PENALTY DATED 22.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 274 READ WITH SECTION 271(1)(C) OF THE ACT EXHIBIT P12(a) THE TRUE COPY OF THE NOTICE OF PENALTY DATED 22.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 274 READ WITH SECTION 271F OF THE ACT EXHIBIT P13 THE TRUE COPY OF AN ARTICLE DATED 22.08.2021, DOWNLOADED FROM WWW.CACLUBINDIA.COM, PROVIDING INFORMATION RELATING TO THE GLITCHES IN THE NEW IT PORTAL EXHIBIT P14 THE TRUE COPY OF THE CIRCULAR NO. 19/2019 DATED 14.08.2019 ISSUED BY THE CBDT, NEW DELHI EXHIBIT P14(a) THE TRUE COPY OF THE PRESS RELEASE DATED 14.08.2019 ISSUED BY THE CBDT, NEW DELHI "