Lakshmi Girish V. Union of India and Income Tax Officer Ward 1 & TPS and Additional / Joint / Deputy / Assistant Commissioner of Income Tax and Commissioner of Income Tax (Appeals)

WP(C)/4681/2023

AI Insights

The case involves a writ petition filed by Lakshmi Girish challenging the order Ext.P15 issued by the Appellate Authority concerning an income tax assessment for the assessment year 2017-18. The petitioner contended that his additional documents and grounds, submitted during the appeal, were not considered, and he was not given a hearing as required under Section 250 of the Income Tax Act. The Department admitted the absence of a hearing. The court found that the procedural norms set by the Central Board of Direct Taxes for the National Faceless Appeal Centre were not adhered to, leading to the decision to set aside the order and remand the case for a proper hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 802345 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-02-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: RAJAKANNAN; M NAMBIAR; K JOSON MANAVALAN; KURYAN THOMAS ABRAHAM
• Keywords: Additional grounds; Appeal; Assessment Order; Faceless Assessment Scheme; Hearing; Income Tax; National Faceless Appeal Centre
• Section: 148; 142(1); 250; 270A

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI FRIDAY, THE 17TH DAY OF FEBRUARY 2023 / 28TH MAGHA, 1944 WP(C) NO. 4681 OF 2023 PETITIONER: LAKSHMI GIRISH AGED 42 YEARS MOOLIYIL HOUSE, BEHIND NS TALKIES, CHILAVANOOR ROAD, KANNUR – 670002. BY ADVS. RAJA KANNAN M.GOPIKRISHNAN NAMBIAR K.JOHN MATHAI JOSON MANAVALAN KURYAN THOMAS PAULOSE C. ABRAHAM RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY ITS REVENUE SECRETARY, MINISTRY OF FINANCE, NEW DELHI – 110004. 2 THE INCOME TAX OFFICER WARD 1 & TPS, AAYAKAR BHAVAN, KANNOTHUMCHAL, CHOVVA P.O., KANNUR – 670006. 3 ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME-TAX OFFICER, (PRESENTLY ASSESSMENT UNIT) INCOME TAX DEPARTMENT, NATIONAL E-ASSESSMENT CENTRE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, NEW DELHI – 110003. 4 THE COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, NATIONAL FACELESS APPEAL CENTRE, NEW DELHI – 110003. SRI. CHRISTOPHER ABRAHAM, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 4681 OF 2023 2 T.R. RAVI, J. -------------------------------------------- W.P.(C) No.4681 of 2023 -------------------------------------------- Dated this the 17th day of February, 2023 JUDGMENT The writ petition has been filed challenging Ext.P15 order issued by the Appellate Authority in an appeal filed by the petitioner challenging the order of assessment. The main ground on which the petitioner challenges the order is that the petitioner has not been heard and his contentions which have been raised in the form of additional documents and additional grounds have not been considered at all. 2. The Standing Counsel for the Department admits that there has been no hearing as contemplated in Section 250 of the Income Tax Act. The manner in which the National Faceless Appeal Centre is to function has been stated in notification dated 28.12.2021 issued by Central Board of Direct Taxes. Clause V of the scheme specifically lays down the procedure for dealing with appeals. It is evident that the procedure has not been followed. WP(C) NO. 4681 OF 2023 3 In the above circumstances, Ext.P15 is set aside. The Appellate Authority is directed to reconsider the appeal after considering the objections raised by the petitioner and after hearing the petitioner at the earliest, at any rate, within a period of four months from the date of receipt of a copy of this judgment. The proceedings initiated for imposing penalty shall be kept in abeyance till the disposal of the appeal. Sd/- T.R.RAVI JUDGE mpm WP(C) NO. 4681 OF 2023 4 APPENDIX OF WP(C) 4681/2023 PETITIONER EXHIBITS Exhibit P1 THE TRUE COPY OF THE NOTICE DATED 13.11.2019 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 148 OF THE ACT, FOR A.Y 2017-18. Exhibit P2 THE TRUE COPY OF THE REPLY DATED 11.11.2020 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT. Exhibit P3 THE TRUE COPY OF THE NOTICE DATED 01.02.2021 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 142(1) OF THE ACT. Exhibit P4 THE TRUE COPY OF THE REPLY LETTER (WITHOUT ANNEXURES) DATED 10.02.2021 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. Exhibit P5 THE TRUE COPY OF THE NOTICE DATED 19.02.2021 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 142(1) OF THE ACT. Exhibit P6 THE TRUE COPY OF THE REPLY LETTER (WITHOUT ANNEXURES) DATED 24.02.2021 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. Exhibit P7 THE TRUE COPY OF THE ASSESSMENT ORDER DATED 05.03.2021 ISSUED BY THE 3RD RESPONDENT UNDER THE 'FACELESS ASSESSMENT SCHEME', FOR THE A.Y 2017-18. Exhibit P8 THE TRUE COPY OF THE E-APPEAL MEMORANDUM (FORM NO. 35) DATED 28.03.2021 FILED BY THE PETITIONER FOR A.Y 2017-18. Exhibit P9 THE TRUE COPY OF THE ADDITIONAL GROUNDS OF APPEAL DATED 20.04.2022 FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT FOR THE A.Y 2017-18. Exhibit P10 THE TRUE COPY OF THE NOTE (WITHOUT ANNEXURES) FOR SUBMISSION OF ADDITIONAL EVIDENCE DATED 20.04.2022 FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT FOR THE A.Y 2017-18. WP(C) NO. 4681 OF 2023 5 Exhibit P11 THE TRUE COPY OF THE WRITTEN SUBMISSIONS (WITHOUT ANNEXURES) DATED 20.04.2022 FILED BY THE PETITIONER BEFORE THE 4TH RESPONDENT FOR THE A.Y 2017-18. Exhibit P12 THE TRUE COPY OF THE ELECTRONICALLY GENERATED ACKNOWLEDGMENT DATED NIL, EVIDENCING THE FILING OF ADDITIONAL GROUNDS OF APPEAL, ADDITIONAL EVIDENCE, AND WRITTEN SUBMISSIONS, FOR THE A.Y 2017-18. Exhibit P13 THE TRUE COPY OF THE ELECTRONICALLY GENERATED ACKNOWLEDGMENT DATED NIL, EVIDENCING THE FILING OF WRITTEN SUBMISSIONS AND BUILDING PLAN AND BUILDING PERMIT, BEFORE THE 4TH RESPONDENT, FOR THE A.Y 2017-18. Exhibit P14 THE TRUE COPY OF THE VALUATION REPORT DATED 22.03.2022 ELECTRONICALLY SUBMITTED BY THE PETITIONER FOR THE A.Y 2017-18. Exhibit P15 THE TRUE COPY OF THE ORDER DATED 28.10.2022 ISSUED BY THE 4TH RESPONDENT FOR A.Y 2017-18. Exhibit P16 THE TRUE COPY OF THE NOTICE DATED 05.03.2021 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 274 READ WITH 270A OF THE ACT, FOR A.Y 2017-18. Exhibit P17 THE TRUE COPY OF THE LETTER (WITHOUT ANNEXURES) DATED 31.03.2021 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. Exhibit P18 THE TRUE COPY OF THE NOTICE DATED 21.11.2022 ISSUED BY THE 3RD RESPONDENT UNDER SECTION 270A OF THE ACT, FOR A.Y 2017-18. Exhibit P19 THE TRUE COPY OF THE LETTER (WITHOUT ANNEXURES) DATED 28.11.2022 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. "