Punalur Primary Co-operative Agricultural and Rural Development Bank, Ltd No. Q 1644 V. The National Faceless Assessment Centre and The Income Tax Officer, Ward No. 2

WP(C)/20984/2021

AI Insights

The case involves the Punalur Primary Co-operative Agricultural and Rural Development Bank, which challenged an assessment order issued by the National Faceless Assessment Centre and the Income Tax Officer. The petitioner argued that the four-day period granted to respond to a show cause notice was insufficient, particularly under the faceless assessment scheme, which inherently requires more time for compliance due to its procedural nature. The court agreed, emphasizing the need for a reasonable time to respond to such notices, and set aside the original assessment order, instructing a re-assessment after proper notice and opportunity to be heard are provided.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 805720 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 03-12-2021
• Assessment Year: misc
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: PHILIP VARGHESE; THOMAS VARGHESE; ACHU ABRAHAM; V T LITHA; K R MONISHA
• Keywords: Assessment Order; Faceless assessment; Natural Justice; Show cause notice
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 3RD DAY OF DECEMBER 2021 / 12TH AGRAHAYANA, 1943 WP(C) NO. 20984 OF 2021 PETITIONER : PUNALUR PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK, LTD NO. Q 1644, REPRESENTED BY ITS SECRETARY, L.VARGHESE, THOLICODE P.O, PUNALUR - 691333. BY ADVS. PHILIP T.VARGHESE THOMAS T.VARGHESE ACHU SUBHA ABRAHAM V.T.LITHA K.R.MONISHA RESPONDENTS : 1 THE NATIONAL FACELESS ASSESSMENT CENTRE, REPRESENTED BY THE OFFICE -IN- CHARGE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI - 110001. 2 THE INCOME TAX OFFICER, WARD NO. 2, AAYAKAR BHAVAN, NEAR KARBALA JUNCTION, KOLLAM - 691001. BY SRI.CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 20984 OF 2021 2 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C) No.20984 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 3rd day of December, 2021 JUDGMENT Petitioner is challenging Ext.P7 order of assessment dated 22.09.2021 for the assessment years 2018-19. 2. Petitioner is a Primary Agricultural Credit Co-operative Society. The order of assessment reveals that the notice was issued on 16.09.2021 directing the petitioner to reply by 20.09.2021. Four days' time alone was granted to reply to the show cause notice. The assessment order further states that since the assessee did not respond within the period of four days, the assessing officer waited for one more day and since even then assessee had not responded, and as the case was falling into a state of time bar, there was no alternative other than to assess the petitioner. 3. The principles of natural justice essentially require a reasonable time to be granted to an assessee to respond to a show cause notice. Four days' time, according to me is not sufficient in the circumstances of the case to respond, that too through the faceless assessment scheme. The limited period granted to the petitioner to WP(C) NO. 20984 OF 2021 3 respond to the show cause notice inherently creates a perversity in the order impugned. The order of assessment has been passed without hearing the petitioner and is hence liable to be set aside. Accordingly, I set aside Ext.P7 and direct the assessing officer to pass fresh orders of assessment after granting a reasonable opportunity of being heard to the petitioner. Prior to grant of such an opportunity, the assessee shall also be granted an opportunity to file his respective objection to the show cause notice dated 16.09.2021. In order to avoid further delay, the assessee shall file his explanation to the show cause notice dated 16.09.2021 on or before 15.01.2021 and thereafter the assessing officer shall grant the opportunity as directed in the judgment and pass appropriate orders thereon, in accordance with law. The writ petition is allowed as above. BECHU KURIAN THOMAS, JUDGE RKM Corrigendum dated 16.12.2021 The date shown as “15.01.2021” in the 11th line shall be read as “15.01.2022”. Sd/- BECHU KURIAN THOMAS, JUDGE RKM WP(C) NO. 20984 OF 2021 4 APPENDIX OF WP(C) 20984/2021 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF SHOW CAUSE NOTICE DIN.ITDA/AST/F/143 (3) (SCN)/2021- 22/1035022639/1 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 16.09.2021. Exhibit P2 TRUE COPY OF THE DRAFT DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 15.09.2021. Exhibit P3 TRUE COPY OF DRAFT COMPUTATION SHEET ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER FOR AY 2018-10 DATED 15.09.2021. Exhibit P4 TRUE COPY OF DRAFT ASSESSMENT ORDER FOR AY - 2018-19 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 15.09.2021. Exhibit P5 TRUE COPY OF THE PRINTOUT FORM E-FILING PORTAL OF THE INCOME TAX DEPARTMENT AS REGARDS THE PETITIONER TAKEN ON 20.09.2021. Exhibit P6 TRUE COPY OF THE PRINTOUT FORM E-FILING PORTAL OF THE INCOME TAX DEPARTMENT AS REGARDS THE PETITIONER WITH REASON FOR SEEKING ADJOURNMENT TAKEN ON 20.09.2021. Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER FOR AY -2018-19 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 22.09.2021. Exhibit P8 TRUE COPY OF DEMAND NOTICE NO ITBA/AST/S/156/2021-22/1035799727(1) ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. WP(C) NO. 20984 OF 2021 5 Exhibit P9 TRUE COPY OF THE COMPUTATION SHEET FOR AY 2018-19 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER DATED 22.09.2021. "