P.K.UNNIKRISHNAN V. THE PRINCIPAL COMMISSIONER OF INCOME TAX

WP(C)/20684/2022

AI Insights

The case involves P.K. Unnikrishnan, the petitioner, who challenged the assessment order (Ext.P4) issued under Section 144B of the Income Tax Act by the Income Tax Department. The petitioner argued that he was not given a sufficient opportunity to respond to the draft assessment order (Ext.P3), which was served on him on the same day it was issued, demanding a reply by 3:30 PM. The respondent's counsel contended that the petitioner had an effective alternative remedy and could raise his concerns before the appellate authority. However, the court found the procedure followed in issuing the final assessment order without adequate time for response to be improper and set aside the order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 751308 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 27-06-2022
• Assessment Year: misc
• Other Referred Cases: WP(C) No.11540/2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: HARISANKAR MENON; MEERA MENON; R SREEJITH; K KRISHNA
• Keywords: Draft Assessment Order; Sufficient opportunity; Illegal and unsustainable; Reply to the draft assessment order
• Section: 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 27TH DAY OF JUNE 2022 / 6TH ASHADHA, 1944 WP(C) NO. 20684 OF 2022 PETITIONER: P.K.UNNIKRISHNAN, AGED 60 YEARS, HAREKRISHNA, PULIYAPARAMBU, KODUNTHIRAPULLY, PALAKKAD-678004. BY ADVS. HARISANKAR V. MENON MEERA V.MENON R.SREEJITH K.KRISHNA RESPONDENTS: 1 THE PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673001. 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME-TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI-110001. OTHER PRESENT: SRI. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C).No.20684/2022 2 J U D G M E N T Petitioner has approached this Court challenging Ext.P4 assessment order issued under Section 144 B of the Income Tax Act. The specific case of the petitioner is that the petitioner was served with Ext.P3 draft assessment order on 31.03.2022, calling upon the petitioner to submit reply on the same date before 3:30P.M. on the same day. It is submitted that the finalization of draft assessment order by Ext.P4 without giving sufficient opportunity to the petitioner to reply to the draft assessment order is illegal and unsustainable. 2. I have heard the learned Standing Counsel appearing for the respondent department. The learned Standing Counsel submits that the petitioner has an effective alternative remedy against Ext.P4 and it is open to the petitioner to take all contentions before the appellate authority including the contention that sufficient opportunity was not given to the petitioner to reply to the proposals contained in the draft assessment order. It is submitted that there is no reason whatsoever for the petitioner to approach this Court directly under Article 226 of the Constitution of India challenging Ext.P4 W.P(C).No.20684/2022 3 order. However it is very fairly admitted that Ext. P3 draft assessment order was served on 31.03.2022, calling upon the petitioner to submit reply by 3:30 p.m., on the same day. 3. Having regard to the facts and circumstances of the case and considering the contentions raised by the learned counsel for the petitioner and the learned Standing Counsel for the department, I am of the opinion that Ext.P4 order is liable to be set aside. It is directed that the petitioner shall be given reasonable time to reply to the proposals contained in Ext.P3 draft assessment order. The petitioner shall file a reply to the proposals contained in Ext.P3 draft assessment order within 7 days from the date on which a suitable link is provided to the petitioner by the department. Thereafter, the proceeding shall be completed in accordance with law after affording an opportunity of hearing to the petitioner. Sd/- GOPINATH P. JUDGE ats W.P(C).No.20684/2022 4 APPENDIX OF WP(C) 20684/2022 PETITIONER EXHIBITS EXHIBIT P1 COPY OF ORDER ISSUED BY THE 1ST RESPONDENT FOR THE YEAR 2015-16 DATED 30.3.2021. EXHIBIT P2 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 29.3.2022. EXHIBIT P3 COPY OF SHOW CAUSE NOTICE ISSUED BY THE 2ND RESPONDENT DATED 31.3.2022. EXHIBIT P4 COPY OF ASSESSMENT ORDER ISSUED BY THE 2ND RESPONDENT FOR THE YEAR 2015-16 DATED 31.3.2022. EXHIBIT P5 COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT DATED 31.3.2022. EXHIBIT P6 COPY OF JUDGMENT IN WP(C) NO.11540/2021 OF THIS HON'BLE COURT DATED 15.3.2022. "