Palasseri Pulikkal Muhammed Ali V. The Assistant Commissioner of Income Tax, Central Circle -1 Kozhikode and The Principal Director of Income Tax (Inv) Kochi

WP(C)/7829/2023

AI Insights

The case involves Palasseri Pulikkal Muhammed Ali, a businessman engaged in the gold jewelry trade, who sought judicial relief to defer assessment proceedings initiated by the Income Tax Department until the return of seized documents and for an additional four months. The petitioner argued that the seized documents were essential for responding to notices under Sections 142(1) and 153C of the Income Tax Act, 1961, issued for various assessment years. The court's decision facilitates the petitioner's access to necessary documents to ensure a fair opportunity to respond to the tax assessments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 797506 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 17-11-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SUSIE VARGHESE
• Assessee Lawyers: M P AHAMED; AKHIL MANITHOTTYIL
• Keywords: Assessment proceedings; Document seizure; Income Tax; Search and seizure; Writ of Mandamus; Business Records
• Section: 142(1); 153C; 153B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 17TH DAY OF NOVEMBER 2023 / 26TH KARTHIKA, 1945 WP(C) NO. 7829 OF 2023 PETITIONER/S: PALASSERI PULIKKAL MUHAMMED ALI AGED 62 YEARS S/O MUHAMMED (LATE), RESIDING AT A11A, BENZEER MANZIL, KUTTOOR POST, A.R.NAGAR, MALAPPURAM, PIN - 676305 BY ADVS. M.P.SHAMEEM AHAMED AKHIL PHILIP MANITHOTTIYIL RESPONDENT/S: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1 KOZHIKODE, 7Q4H+GMG, MANANCHIRA, KOZHIKODE, KERALA, PIN - 673001 2 THE PRINCIPLE DIRECTOR OF INCOME TAX (INV) KOCHI, X885+X6J, ERNAKULAM, KOCHI, KERALA, PIN - 682020 OTHER PRESENT: SMT.SUSIE B VARGHESE-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 7829 OF 2023 2 J U D G M E N T The present writ petition has been filed seeking following reliefs: “i) To call for the records leading to the issuance of Ext.Pl, Ext. P2, Ext. P3 and Ext. P4 notices and to issue a Writ of Mandamus or such other Writ or direction to the 1st Respondent to defer the assessment proceedings initiated pursuant to Ext.P1 and Ext.P3 notices until such time all the documents seized from the Petitioners business premises are returned to Petitioner and for a further period of 4 months from the date of such return. ii) To issue a writ of mandamus or such other writ or direction to the 2nd Respondent to complete the investigations against the Petitioner and his related entities and release all the seized records in a time bound manner.” 2. The petitioner is engaged in the business of Gold jewellery having manufacturing, wholesale and retail trade under the brand “Dubai Gold”. The petitioner is also an assessee under the provisions of the Income Tax Act, 1961 (“Act”, for short). The petitioner runs his business through various firms, including proprietor firms, partnership WP(C) NO. 7829 OF 2023 3 firms, limited liability partnerships, private limited companies etc. Twelve (12) entities of the petitioner are mentioned in paragraph No.3 of the writ petition. 3. A search and seizure operation was conducted in the business and residential premises of the petitioner. Computers, documents etc. were seized from the business and residential premises of the petitioner and notices, Ext.P1, under Section 153C of the Act for the assessment years 2015-16 to 2020-21 were issued on 2.6.2022. Notice under Section 142(1) of the Act was issued to the petitioner on 13.7.2022 in connection with the assessments, asking the petitioner to provide details relating to various Bank accounts maintained with A.R.Nagar Service Co-operative Society. The petitioner was given final opportunity to file his reply in respect of the said notices vide Ext.P4 notice dated 17.2.2023. Learned counsel for the petitioner submits that the petitioner is willing to co-operate with the proceedings and WP(C) NO. 7829 OF 2023 4 furnish the details asked for vide notice under Section 142(1) of the Act, Ext.P4. However, in the absence of the relevant documents and information, which are available in the computer system of the petitioner seized by the Department, it is not possible for the petitioner to file proper reply and furnish the information as sought for vide Ext.P4 notice. 4. Learned counsel for the petitioner submits that the respondents be directed to provide copies of the required documents, pen-drives etc. of the information stored in the computer system seized from the petitioner and thereafter, the petitioner be granted at least four weeks time to file reply to Ext.P4 notice and only thereafter the proceedings for adjudication and finalisation of the assessment under Section 153B of the Act may be directed to be commenced. 5. Learned counsel for the petitioner also submits that the petitioner will not challenge the final assessment order to be passed, on the ground WP(C) NO. 7829 OF 2023 5 of limitation, if the petitioner is provided with copies of required documents and information in pen-drives from the computer system of the petitioner, which were seized from his premises. Learned counsel for the petitioner submits that the petitioner will submit an application detailing the documents etc. to be provided by the Department on payment basis. 6. Smt.Susie B.Varghese, learned Senior Standing Counsel for the Income Tax Department, submits that let the petitioner be permitted to apply for required/relevant documents on payment basis. If the petitioner applies for copies of required/relevant documents for filing his reply to Ext.P4 notice, the same will be provided by the Department on payment basis. The petitioner should thereafter file his reply to Ext.P4 notice and the Department will proceed with the assessment thereafter, in accordance with law. 7. Considering the said stand and the submissions of the learned counsel for the WP(C) NO. 7829 OF 2023 6 petitioner as well as the learned Senior Standing Counsel for the Revenue, the present writ petition is disposed of with direction to the petitioner to move an application before the Department for supply of copies of relevant documents within a period of ten days from today. If such an application is moved, the Department should supply copies of the relevant documents and pen-drives to the petitioner within a period of fifteen (15) days from the date of receipt of such application, to enable the petitioner to file proper reply to Ext.P4 notice for undertaking further proceedings. After the petitioner is given copies of the relevant documents on charge basis as above, the petitioner should file his reply to Ext.P4 notice within a period of four weeks from the date of receipt of copies of the relevant documents from the Department. Further proceedings in respect of Ext.P4 notice should commence after four weeks from the date of supply of copies of relevant documents to the petitioner. If the petitioner fails to file WP(C) NO. 7829 OF 2023 7 an application for supply of copies of relevant documents as above, or if the documents are provided as above and the petitioner fails to file his reply to Ext.P4 notice within four weeks from the date of receipt of copies of relevant documents, the Department should proceed with the notice in Ext.P4, in accordance with law. It is made clear that if the petitioner files his reply within a period of four weeks of receipt of copies of relevant documents, final assessment order passed by the Department in the proceedings shall not be challenged by the petitioner on the ground of limitation. To enable the parties to undertake the aforesaid exercises, further proceedings in pursuance to Ext.P4 notice shall be kept in abeyance. Interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 7829 OF 2023 8 APPENDIX OF WP(C) 7829/2023 PETITIONER EXHIBITS Exhibit- P1 COPY OF THE NOTICES DATED 02.06.2022 ISSUED UNDER SECTION 153 C FOR THE ASSESSMENT YEARS STARTING FROM 2015-16 TO 2020-21 Exhibit - P2 COPY OF THE PRE-ASSESSMENT NOTICE DATED 29.08.2022 ISSUED BY THE 1ST RESPONDENT Exhibit- P3 COPY OF THE NOTICES DATED 29.08.2022 ISSUED UNDER SECTION 153 C OF THE INCOME TAX ACT FOR THE ASSESSMENT YEARS 2011-12, A.Y 2012- 13 AND A.Y 2013-14 Exhibit- P4 COPY OF THE NOTICE DATED 17.02.2023 BY THE 1ST RESPONDENT UNDER SECTION 142 (1) Exhibit - P5 COPY OF THE PANCHANAMA DATED 23.02.2023 FOR THE DOCUMENTS SEIZED FROM THE PETITIONER'S CORPORATE OFFICE AT, M/S DUBAI GOLD AND DIAMONDS Exhibit - P6 COPY OF THE PANCHANAMA DATED 24.02.2023 FOR THE DOCUMENTS SEIZED FROM THE PETITIONER'S FIRM AT 'FIRDOUS COMPLE' KUNNUMPURAM Exhibit - P7 COPY OF THE PANCHANAMA DATED 22.02.2023 FOR THE DOCUMENTS SEIZED FROM FIRDUS GOLD PERINTHALMANNA LLP Exhibit - P8 COPY OF THE PANCHANAMA DATED 23.02.2023 FOR THE DOCUMENTS SEIZED FROM FIRDOUS GOLD CHEMMAD PRIVATE LIMITED Exhibit - P9 COPY OF THE PANCHANAMA DATED 24.02.2023 FOR THE DOCUMENTS SEIZED FROM FIRDUS GOLD RAMANATTUKARA LLP WP(C) NO. 7829 OF 2023 9 Exhibit - P10 COPY OF THE PANCHANAMA DATED 24.02.2023 FOR THE DOCUMENTS SEIZED FROM PPM KONDOTTI Exhibit - P11 COPY OF THE LETTER DATED 4 MARCH 2023 GIVEN BY THE PETITIONER TO THE 1ST RESPONDENT "