RASHTRA DHARMA PARISHAD V. ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTION)

WP(C)/8659/2021

AI Insights

The case involves Rashtra Dharma Parishad, represented by its secretary, Sri. K. Lakshmy Narayanan, challenging an order (Ext.P15) issued by the Income Tax Department under the faceless assessment scheme. The petitioner argued that the final assessment order was issued without any opportunity for them to respond, specifically lacking a draft assessment order or a show cause notice, which is required under Section 144B of the Income Tax Act. The Income Tax Department conceded that a show cause notice was not issued, leading the court to quash the order and allow for a re-assessment following proper procedures.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 751364 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 31-05-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM
• Assessee Lawyers: ANIL NAIR; SREEJITH NAIR; TELMA RAJU; SANGEETH JACOB; CHRISTINA PAUL
• Keywords: Draft Assessment Order; Faceless Assessment Scheme; Final Assessment Order; Show cause notice
• Section: 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 31ST DAY OF MAY 2022 / 10TH JYAISHTA, 1944 WP(C) NO. 8659 OF 2021 PETITIONER/S: RASHTRA DHARMA PARISHAD MADHAV NIVAS, PERANDOOR ROAD, ELAMAKKARA, ERNAKULAM-682 026, KERALA , REPRESENTED BY ITS SECRETARY, SRI. K. LAKSHMY NARAYANAN. BY ADVS. ANIL D. NAIR SRI.SREEJITH R.NAIR SMT.TELMA RAJU SRI.SANGEETH JOSEPH JACOB SMT.CHRISTINA ANNA PAUL RESPONDENT/S: 1 ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTION) I.S.PRESS ROAD, CENTRAL REVENUE BUILDING, COCHIN-682 018 2 THE INCOME TAX OFFICER, NATIONAL E ASSESSMENT CENTER (NEAC), 2ND FLOOR, E-RAMP, ROOM NO. 401, JAWAHARLAL NEHRU STADIUM, NEW DELHI- 110003 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.05.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 8659 OF 2021 2 JUDGMENT Petitioner has approached this Court, challenging Ext.P15 order which has been issued under the faceless assessment scheme. 2. The learned counsel appearing for the petitioner submits that without affording any opportunity and without issuing a draft assessment order or show cause notice, the assessing officer has issued Ext.P15 final assessment order, which is contrary to the provisions of Section 144B of the Income Tax Act. 3. Sri. Christopher Abraham, learned Standing Counsel for the Income Department would submit that the a draft assessment order had indeed uploaded by the assessing officer. However, he very fairly submits that the show cause notice which ought to have been issued to the petitioner was not so issued. 4. Taking into account the submissions made by the learned counsel appearing for the petitioner and the learned Standing Counsel, I am of the opinion that Ext.P15 order is only to be set aside as the petitioner was not issued with a show cause notice prior to the issuance of Ext.P15. This is WP(C) NO. 8659 OF 2021 3 obviously contrary to the statutory provisions. In the result, the writ petition is allowed, quashing Ext.P15 order, making it clear that this Court has not expressed any opinion on the merits of the matter. It is open to the authorities to issue fresh assessment order, after following the procedure prescribed in Section 144B of the Income Tax Act. I place on record my sincere appreciation for the extremely fair stand taken by the learned Standing counsel for the Income Tax Department. sd/- GOPINATH P. JUDGE ajt WP(C) NO. 8659 OF 2021 4 APPENDIX OF WP(C) 8659/2021 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE ACKNOWLEDGEMENT DATED 08.09.2018 (ASSESSMENT YEAR 2018-19) EXHIBIT P2 TRUE COPY OF THE NOTICE DATED 22.09.2019 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P3 TRUE COPY OF THE REPLY DATED 05.10.2019 ALONG WITH INCOME DETAILS FILED BY THE PETITIONER. EXHIBIT P4 TRUE COPY OF THE ACKNOWLEDGEMENT RECEIVED ON 07.10.2019. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 05.05.2020 ISSUED BY THE 1ST RESPONDENT. EXHIBIT P6 TRUE COPY OF THE LETTER DATED 14.05.2020 ALONG WITH DOCUMENTS FILED BY THE PETITIONER. EXHIBIT P7 TRUE COPY OF THE ACKNOWLEDGEMENT DATED 20.05.2020. EXHIBIT P8 TRUE COPY OF THE INTIMATION DATED 14.10.2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P9 TRUE COPY OF THE NOTICE DATED 21.12.2020 ISSUED BY THE 2ND RESPONDENT. EXHIBIT P10 TRUE COPY OF THE LETTER DATED 06.01.2021 FILED BY THE PETITIONER. EXHIBIT P11 TRUE COPY OF THE RETURN FOR THE YEAR 2016-17 EXHIBIT P12 TRUE COPY OF THE ASSESSMENT ORDER DATED 10.12.2018 FOR THE YEAR 2016-17 EXHIBIT P13 TRUE COPY OF THE RETURN DATED 31.08.2017 AND INTIMATION UNDER SECTION 143(1) DATED 27.02.2018. EXHIBIT P14 TRUE COPY OF THE INTIMATION UNDER SECTION 143(1) DATED 27.02.2018. EXHIBIT P15 TRUE COPY OF THE ORDER DATED 13.03.2021 ISSUED BY THE 2ND RESPONDENT. Exhibit P16 TRUE COPY OF THE NOTICE DATED 9/7/2021 ISSUED BY THE OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX Exhibit P17 TRUE COPY OF THE REMINDER DATED 7/9/2021 ISSUED BY THE OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX Exhibit P18 TRUE COPY OF THE REPLY LETTER DATED 9/9/2021 SUBMITTED ON BEHALF OF THE PETITIONER Exhibit P19 TRUE COPY AND ACKNOWLEDGMENT EVIDENCING FILING OF REPLY LETTER DATED 9/9/2021 Exhibit P20 TRUE COPY OF THE NOTICE DATED 15/7/2021 WP(C) NO. 8659 OF 2021 5 ISSUED BY THE NATIONAL FACELESS ASSESSMENT CENTRE, DELHI Exhibit P21 TRUE COPY OF LETTER DATED 20/7/2021 SUBMITTED ON BEHALF OF THE PETITIONER Exhibit P22 TRUE COPY OF ELECTRONIC ACKNOWLEDGEMENT EVIDENCING THE FILING OF LETTER DATED 20/7/2021 Exhibit P23 TRUE COPY OF THE NOTICE DATED9/3/2022 ISSUED BY THE NATIONAL FACELESS ASSESSMENT CENTRE, DELHI Exhibit P24 TRUE COPY OF THE REPLY DATED 12/3/2022 SUBMITTED ON BEHALF OF THE PETITIONER Exhibit P25 TRUE COPY OF ELECTRONIC ACKNOWLEDGEMENT EVIDENCING THE FILING OF REPLY DATED 12/3/2022 "