RAJAKUMARI SHOPPING MALL LLP V. PRINCIPAL COMMISSIONER OF INCOME TAX

WP(C)/10674/2021

AI Insights

The case involves Rajakumari Shopping Mall LLP, the petitioner, challenging an order (Ext.P4) passed under Section 263 of the Income Tax Act by the Principal Commissioner of Income Tax. The petitioner argued that the order was passed without adhering to the principles of natural justice, specifically without providing an opportunity to be heard, which is a statutory requirement under Section 263. The court agreed with the petitioner, noting the absence of any evidence showing that an opportunity to be heard was granted prior to the issuance of the order. Consequently, the court set aside the impugned order and directed the issuance of a new order following the proper procedural requirements.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 753082 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-04-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ANIL NAIR; R; TELMA RAJU; SANGEETH JACOB; CHRISTINA PAUL
• Keywords: Natural Justice; Opportunity of being heard; Revisional Jurisdiction
• Section: 263

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS FRIDAY, THE 30TH DAY OF APRIL 2021 / 10TH VAISAKHA, 1943 WP(C).No.10674 OF 2021(H) PETITIONER: RAJAKUMARI SHOPPING MALL LLP AMC 11/1556, CITY PLAZA, NEAR PVT. BUS STAND, ATTINGAL, TRIVANDRUM 695 101, REPRESENTED BY DESIGNATED PARTNER. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SMT.TELMA RAJU SRI.SANGEETH JOSEPH JACOB SMT.CHRISTINA ANNA PAUL RESPONDENTS: 1 PRINCIPAL COMMISSIONER OF INCOME TAX AAYAKAR BHAWAN, 1ST FLOOR, KOWDIAR P.O., TRIVANDRUM-695 003. 2 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1 (2), TRIVANDRUM-695 003. OTHER PRESENT: SC-SRI.CHRISTOPHER ABRAHAM THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30.04.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No.10674 OF 2021(H) 2 BECHU KURIAN THOMAS, J ------------------------------------- WP(C) No.10674 of 2021 ------------------------------------- Dated this the 30th day of April 2021 J U D G M E N T Petitioner challenges Ext.P4, an order passed in exercise of the powers under Section 263 of the Income Tax Act (IT Act). Eventhough there are statutory remedies under the IT Act against Ext.P4, petitioner confines his challenge against Ext.P4 solely on the ground of violation of the principles of natural justice, which according to him, is inbuilt into the provisions of Section 263. 2. On a reading of Section 263, it is evident that the exercise of revisional jurisdiction ought to be after giving the assessee an opportunity of being heard. 3. Neither the impugned order nor the notice preceding the order shows that any opportunity as having been granted to the petitioner. 4. I have heard Adv. Anil D. Nair, the learned counsel for the petitioner as well as the learned Standing Counsel, Adv.Christopher Abraham. WP(C).No.10674 OF 2021(H) 3 5. After perusing the impugned orders, I am satisfied that there has been an infraction of the statutory provision and that too, of the basic requirement of an opportunity of being heard. Since the principles of natural justice have been violated, this Court is of the view that the petitioner need not be relegated to the statutory remedies at this instance. If the impugned order is set aside and a fresh opportunity is granted, the same would cater to the needs of law. 6. Accordingly, I set aside Ext.P4 and direct the 1st respondent to pass fresh orders, after issuing proper notice for hearing and after granting an opportunity of hearing to the petitioner, in accordance with law. The same shall be done within a period of 2 months from the date of receipt of a copy of this judgment. This writ petition is allowed as above. Sd/- BECHU KURIAN THOMAS, JUDGE Skk//03052021 WP(C).No.10674 OF 2021(H) 4 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 31.12.2018 FOR THE YEAR 2016- 17 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF THE NOTICE DATED 8.3.2021 ISSUED BY THE 1ST RESPONDENT TO THE PETITIONER. EXHIBIT P3 TRUE COPY OF REPLY TO THE NOTICE OF THE 1ST RESPONDENT FILED BY THE PETITIONER. EXHIBIT P4 TRUE COPY OF ORDER DATED 29.03.2021 ISSUED BY THE 1ST RESPONDENT. RESPONDENTS' EXHIBITS: NIL "