NARAYANAN VASUDEVAN V. THE INCOME TAX OFFICER

WP(C)/15309/2022

AI Insights

The case involves Narayanan Vasudevan, the proprietor of Vasudev Clinic, who challenged an assessment order (Ext.P10) issued by the Income Tax Department. The petitioner argued that the assessment order was issued prematurely, as it was based on an incorrect understanding of the deadline for responding to a draft assessment order and show cause notice (Ext.P11). The petitioner was allegedly given until 11:59 p.m. on March 24, 2022, to respond, but the assessment order was issued at 9:51 a.m. on the same day. The respondent countered that the petitioner was attempting to evade the assessment process. The court found in favor of the petitioner, leading to the quashing of the assessment order and ordering a re-assessment after proper procedure.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 751326 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 20-06-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; R SREEJITH KRISHNA
• Keywords: Assessment Order; Draft Assessment Order; Show cause notice; Technical argument; Effective alternate remedy
• Section: 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 20TH DAY OF JUNE 2022 / 30TH JYAISHTA, 1944 WP(C) NO. 15309 OF 2022 PETITIONER: NARAYANAN VASUDEVAN AGED 54 YEARS PROPRIETOR, M/S. VASUDEV CLINIC, PERAVOOR P.O., THALASSERY, KANNUR-670673. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE INCOME TAX OFFICER WARD 1 & TPS, INCOME TAX OFFICE, KANNUR-670673. 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-100001. OTHER PRESENT: SC-CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C)No.15309/2022 2 JUDGMENT The petitioner has approached this Court being aggrieved by Ext.P10 order of assessment and consequent demand raised on the petitioner. 2. The learned counsel for the petitioner submits with reference to Ext.P11 show cause notice issued under Section 144B of the Income Tax that the petitioner was given time till 11.59 p.m.(23.59 hours) on 24.3.2022 to reply to the draft assessment order along with the show cause notice. With reference to Ext.P10 order of assessment, it is pointed out that the said order was issued on 24.3.2022 itself, without waiting for the reply of the petitioner, taking the view that the petitioner had time only until 9.51 a.m. on 24.3.2022 to reply to the draft assessment order and accompanying show cause notice. 3. The learned Standing Counsel appearing for the respondent would submit that the petitioner is taking highly technical argument and is trying to evade the completion of assessment within time. It is submitted that the petitioner has an effective alternate remedy. It is submitted that the conduct of the petitioner disentitles him to any relief in exercise of jurisdiction under Article 226 of the Constitution of India. 4. Having heard the learned counsel for the petitioner and the learned Standing Counsel for the Department, I am of the view that W.P.(C)No.15309/2022 3 without going into any other aspect of the matter, the petitioner is entitled to succeed as Ext.P10 order of assessment was issued as if the petitioner had time only till 9.51 a.m. on 24.3.2022 to reply to the draft assessment order and the show cause notice, while going by Ext.P11, the petitioner had time till 11.50 p.m.(23.59 hours) on 24.3.2022 to reply to the draft assessment order/show cause notice. Therefore, Ext.P10 order of assessment will stand quashed. If the petitioner files a response to Ext.P10 draft assessment order within five days from the date on which the assessing officer permits the petitioner to upload a reply, the same shall be considered and a fresh order of assessment shall be issued after affording an opportunity of hearing to the petitioner. The writ petition will stand disposed of as above. Sd/- GOPINATH P. JUDGE acd W.P.(C)No.15309/2022 4 APPENDIX OF WP(C) 15309/2022 PETITIONER EXHIBITS Exhibit P1 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DATED 24.3.2021. Exhibit P2 COPY OF NOTICE ISSUED BY THE 1ST RESPONDENT DATED 18.11.2021. Exhibit P3 COPY OF REPLY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 17.12.2021. Exhibit P4 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 20.12.2021. Exhibit P5 COPY OF REPLY FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT DATED 2.2.2022. Exhibit P6 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 25.1.2022. Exhibit P7 COPY OF E-PROCEEDINGS RESPONSE ACKNOWLEDGMENT DATED NIL. Exhibit P8 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 2.3.2022. Exhibit P9 COPY OF THE LABORATORY REPORT OF THE PETITIONER DATED 20.3.2022. Exhibit P10 COPY OF ASSESSMENT ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2017-18 DATED 24.3.2022. Exhibit P11 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 22.3.2022. Exhibit P12 COPY OF LETTER OF THE PROPRIETOR OF THE THIRD PARTY FIRM DATED 7.10.2016. Exhibit P13 COPY OF CERTIFICATE ISSUED BY M/S. SSS EXPORTS, CHENNAI DATED NIL. "