Premier Exports International V. The Assistant Commissioner of Income Tax, Non-Corporate Circle 1 (1), Kochi and The Deputy Commissioner of Income Tax, Non-Corporate Circle 1 (1), Kochi and The Central Board of Direct Taxes, New Delhi and The Principal Chief Commissioner of Income Tax, Kochi

WP(C)/8809/2024

AI Insights

The case involves M/s Premier Exports International, represented by its partner M. Nissam, who filed a writ petition challenging the rejection of their rectification application under Section 154 of the Income Tax Act, 1961. The application was initially rejected by the 2nd respondent, the Deputy Commissioner of Income Tax, citing sub-section (7) of Section 154, which restricts the time for passing rectification orders. The petitioner argued that a circular from the Central Board of Direct Taxes (Ext.P6) allows for consideration of such applications on merits, irrespective of the time limit. The court agreed with the petitioner's interpretation and directed a re-evaluation of the application in accordance with the circular.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 674164 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-03-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CYRIAC TOM
• Assessee Lawyers: S RAJ
• Keywords: Assessment Order; Income Tax; Rectification Application; Section 143(3); Section 154
• Section: 143(3); 154; 119(2)(a)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. WEDNESDAY, THE 13TH DAY OF MARCH 2024 / 23RD PHALGUNA, 1945 WP(C) NO. 8809 OF 2024 PETITIONER: M/S PREMIER EXPORTS INTERNATIONAL, AP XII, 800, CHANDIROOR, ALAPPUZHA, KERALA, REPRESENTED BY ITS PARTNER M. NISSAM, PIN – 688 547. BY ADV S.ARUN RAJ RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX, O/O THE ASSISTANT COMMISSIONER OF INCOME TAX, NON- CORPORATE CIRCLE 1 (1), CENTRAL REVENUE BUILDING, 3RD FLOOR, I.S. PRESS ROAD, KOCHI, PIN – 682018. 2 THE DEPUTY COMMISSIONER OF INCOME TAX, O/O THE DEPUTY COMMISSIONER OF INCOME TAX, NON- CORPORATE CIRCLE 1 (1), CENTRAL REVENUE BUILDING, 3RD FLOOR, I.S. PRESS ROAD, KOCHI, PIN – 682 018. 3 THE CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW-DELHI, REPRESENTED BY ITS CHAIRMAN, PIN – 110 003. 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, PIN – 682 018. SRI.CYRIAC TOM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 8809 OF 2024 2 JUDGMENT The petitioner filed Ext.P3 application for rectification of Ext.P2 order under Section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The said application of the petitioner has been rejected by Ext.P5 on the finding that no orders can be passed on rectification in terms of the provisions contained in sub-section (7) of Section 154 of the Act. 2. The learned counsel appearing for the petitioner would submit that in terms of Ext.P6 circular issued by the Central Board of Direct Taxes, applications which were filed in time have to be disposed of on merits notwithstanding the fact that the same has not been disposed of within the time specified in sub-section (7) of Section 154 of the Act. 3. The learned Standing Counsel would submit that the matter can be considered in terms of Ext.P6 circular. Taking into consideration the submissions of the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondent Department, Ext.P5 order is quashed. The 2nd respondent is directed to pass fresh orders on WP(C) NO. 8809 OF 2024 3 Ext.P3 application also taking note of the provisions contained in Ext.P6 circular. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 8809 OF 2024 4 APPENDIX OF WP(C) 8809/2024 PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE PROFIT AND LOSS ACCOUNT AND THE BALANCE SHEET FOR THE YEAR ENDING 31-3-2014 Exhibit P2 A TRUE COPY OF THE ASSESSMENT ORDER DATED 27-10-2016 UNDER SECTION 143 (3) ISSUED BY THE 1ST RESPONDENT FOR THE AY 2014-15 Exhibit P3 A TRUE COPY OF THE RECTIFICATION APPLICATION DATED 7/11/2016 UNDER SECTION 154 OF THE ACT SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT FOR THE AY 2014-15 Exhibit P4 A TRUE COPY OF THE LETTER DATED 14-3- 2023 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT SEEKING TO PASS RECTIFICATION ORDERS ON EXHIBIT P-3 Exhibit P5 A TRUE COPY OF THE ORDER DATED 10-1- 2024 UNDER SECTION 154 OF THE ACT ISSUED BY THE 2ND RESPONDENT FOR THE AY 2014-15 REJECTING EXHIBIT P3 RECTIFICATION APPLICATION Exhibit P6 A TRUE COPY OF THE CIRCULAR NO. 73 DATED 7-1-1972 ISSUED BY THE 3RD RESPONDENT, CENTRAL BOARD OF DIRECT TAXES, NEW DELHI UNDER SECTION 119 (2) (A) OF THE ACT Exhibit P7 A TRUE COPY OF THE INSTRUCTION NO, 1/2016 DATED 15-2-2016 ISSUED BY THE 3RD RESPONDENT; CENTRAL BOARD OF DIRECT TAXES, NEW DELHI "