Sai Rajesh.C V. Union of India and Central Board of Direct Taxes and Principal Chief Commissioner of Income Tax

WP(C)/829/2022

AI Insights

The case involves Sai Rajesh.C, the proprietor of Hotel Rajadhani, who faced orders of assessment under the Income Tax Act for the assessment years 2001-02, 2002-03, 2003-04, and 2005-06. Initially, his appeals were dismissed by the Commissioner of Income Tax (Appeals) due to delay. However, the Income Tax Appellate Tribunal later restored these appeals for re-adjudication. Despite this, the petitioner's application under the Direct Tax Vivad Se Vishwas Act, 2020 was rejected on the grounds that the appeals were not pending. The court found this rejection to be incorrect, considering the Tribunal's order, and thus quashed the rejection and directed a fresh consideration of the application.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 819115 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 16-08-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, Direct Tax Vivad Se Vishwas Act, 2020
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; P K MENON; VISHNU PRADEEP; PRAVEEN
• Assessee Lawyers: ANIL NAIR; TELMA EDATHARA; VINEETA ARAVIND; SREEKUMAR
• Keywords: Appeal; Assessment Order; Direct Tax Vivad Se Vishwas Act; Income Tax
• Section: 143(3)

Judgement Text

"WP(C) Nos.820, 829, 865 & 981/2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 16TH DAY OF AUGUST 2022 / 25TH SRAVANA, 1944 WP(C) NO. 820 OF 2022 PETITIONER: SAI RAJESH.C, AGED 48 YEARS PROPRIETOR, HOTEL RAJADHANI, PATTAMBI P.O., PALAKKAD-679 303. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ARAVIND SREEKUMAR RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. 2 CENTRAL BOARD OF DIRECT TAXES, NORTH BLOC, NEW DELHI-110 002. 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, MANANCHIRA,KOZHIKODE-673 001. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX P.K.RAVINDRANATHA MENON (SR.) VISHNU PRADEEP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.08.2022, ALONG WITH WP(C).829/2022, 865/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.820, 829, 865 & 981/2022 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 16TH DAY OF AUGUST 2022 / 25TH SRAVANA, 1944 WP(C) NO. 829 OF 2022 PETITIONER: SAI RAJESH.C, AGED 48 YEARS, PROPRIETOR, HOTEL RAJADHANI, PATTAMBI P.O., PALAKKAD-679 303. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ARAVIND SREEKUMAR RESPONDENTS: 1 THE UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. 2 CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI-110 002. 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE-673 001. BY ADVS. P.K.RAVINDRANATHA MENON (SR.) JOSE JOSEPH, SC, FOR INCOME TAX VISHNU PRADEEP PRAVEEN K.V., CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.08.2022, ALONG WITH WP(C).820/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.820, 829, 865 & 981/2022 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 16TH DAY OF AUGUST 2022 / 25TH SRAVANA, 1944 WP(C) NO. 865 OF 2022 PETITIONER: SAI RAJESH, AGED 48 YEARS, C. SAI RAJESH,PROPRIETOR, HOTEL RAJADHANI, PATTAMBI P O, PALAKKAD, PIN – 679 303. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ARAVIND SREEKUMAR RESPONDENTS: 1 UNION OF INDIA, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110 001. 2 CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI, PIN – 110 002. 3 PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN – 673 001. BY ADVS. JOSE JOSEPH, SC, FOR INCOME TAX P.K.RAVINDRANATHA MENON (SR.) VISHNU PRADEEP PRAVEEN K.V., CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.08.2022, ALONG WITH WP(C).820/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.820, 829, 865 & 981/2022 4 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. TUESDAY, THE 16TH DAY OF AUGUST 2022 / 25TH SRAVANA, 1944 WP(C) NO. 981 OF 2022 PETITIONER: SAI RAJESH, AGED 48 YEARS, PROPRIETOR, HOTEL RAJADHANI, PATTAMBI P. O., PALAKKAD, PIN - 679 303. BY ADVS. ANIL D. NAIR TELMA RAJU EDATHARA VINEETA KRISHNAN ARAVIND SREEKUMAR RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110 001. 2 CENTRAL BOARD OF DIRECT TAXES , NORTH BLOCK, NEW DELHI, PIN – 110 002. 3 PRINCIPAL CHIEF COMMISSINER OF INCOME TAX AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE, PIN - 673 001. BY ADV PRAVEEN K.V., CGC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16.08.2022, ALONG WITH WP(C).820/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) Nos.820, 829, 865 & 981/2022 5 JUDGMENT [WP(C) Nos.820/2022, 829/2022, 865/2022 & 981/2022] The petitioner suffered orders of assessment under the Income Tax Act for the assessment years 2001-02, 2002-03, 2003-04 and 2005-06. The orders of assessment were on 31.12.2007. The petitioner preferred appeals before the Commissioner of Income Tax (Appeals), who by order dated 27.11.2008 dismissed the appeals and confirmed the orders of assessment. The appeals were dismissed on the ground of delay. On 30.07.2010, the Income Tax Appellate Tribunal, Kochi Bench found that the delay in filing the appeals before the 1st appellate authority ought to have been condoned and restored the matter to the file of the Commissioner of Income Tax (Appeals) for adjudication in accordance with law. On the introduction of the Direct Tax Vivad Se Vishwas Act, 2020, the petitioner preferred an application for settling the disputes in terms of the provisions contained herein. The said application has been rejected on the ground that the appeals filed by the petitioner in respect of the aforesaid assessment years are not pending. Though the petitioner preferred a detailed reply stating that the appeals are pending and giving details of the order of remand by the Income Tax Appellate Tribunal, the WP(C) Nos.820, 829, 865 & 981/2022 6 application of the petitioner under Direct Tax Vivad Se Vishwas Act was rejected. 2. The learned counsel appearing for the petitioner states that the reasons set out for rejecting the application of the petitioner for settlement of liabilities under the Direct Tax Vivad Se Vishwas Act, 2020 is that no proceedings are pending in respect of the assessment of the petitioner. It is submitted that this is clearly not correct as the appeals filed by the petitioner before the 1st appellate authority, which were originally rejected on the ground of delay, had been restored to the file of the Commissioner of Income Tax (Appeals) on account of the subsequent order of the Income Tax Appellate Tribunal, Kochi Bench in ITA Nos.99 to 102 of 2009 on the file of that Tribunal. 3. The learned Standing Counsel appearing for the respondent Department states that the applications of the petitioner under the Direct Tax Vivad Se Vishwas Act, 2020 were rejected only on account of the fact that as per the details available with the authority, who considered the application, no appeals preferred by the petitioner were pending in respect of the assessment years in question. It is submitted that taking into consideration of the order of the WP(C) Nos.820, 829, 865 & 981/2022 7 Income Tax Appellate Tribunal, the authority may be directed to reconsider the matter treating the appeals filed by the petitioner in respect of the aforesaid assessment years before the 1st appellate authority to be pending for consideration. 4. In the above circumstances, Ext.P8 orders in all these writ petitions are quashed. The matter shall stand restored to the file of 3rd respondent for consideration of Ext.P5 application (common in all cases). The 3rd respondent shall consider the matter afresh after affording an opportunity of hearing to the petitioner and taking into account the provisions of the Direct Tax Vivad Se Vishwas Act, 2020. Orders shall be passed by the 3rd respondent as above within a period of three months from the date of receipt of a certified copy of this judgment. This writ petition will stand disposed of as above. Sd/- GOPINATH P. JUDGE DK WP(C) Nos.820, 829, 865 & 981/2022 8 APPENDIX OF WP(C) 829/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 FOR THE A.Y 2003-04 Exhibit P2 TRUE COPY OF ORDER DATED 27.1.2008 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P3 TRUE COPY OF ORDER DATED 30.07.2010 ISSUED BY THE INCOME TAX APPELLATE TRIBUNAL Exhibit P4 TRUE COPY OF ORDER DATED 28.09.2018 ISSUED BY PRINCIPAL COMMISSIONER OF INCOME TAX , THRISSUR Exhibit P5 TRUE COPY OF FORM NO.1 AND 2 FOR THE YEAR 2003-04 Exhibit P6 TRUE COPY OF ORDER DATED 17.08.2021 ISSUED BY THE 3RD RESPONDENT Exhibit P7 TRUE COPY OF REPLY DATED 19.08.2021 SUBMITTED BY THE PETITIONER Exhibit P8 TRUE COPY OF INTIMATION DATED 14.12.2020 WHICH APPEARED IN THE PORTAL WP(C) Nos.820, 829, 865 & 981/2022 9 APPENDIX OF WP(C) 865/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 FOR THE A.Y.2001-02. Exhibit P2 TRUE COPY OF ORDER DATED 27.11.2008 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS). Exhibit P3 TRUE COPY OF ORDER DATED 30.07.2010 ISSUED BY THE INCOME TAX APPELLATE TRIBUNAL. Exhibit P4 TRUE COPY OF ORDER DATED 28.09.2018 ISSUED BY PRINCIPAL COMMISSIONER OF INCOME TAX, THRISSUR. Exhibit P5 TRUE COPY OF FORM NO.1 AND 2 FOR THE YEAR 2001-02. Exhibit P6 TRUE COPY OF ORDER DATED 17.08.2021 ISSUED BY THE 3RD RESPONDENT. Exhibit P7 TRUE COPY OF REPLY DATED 19.08.2021 SUBMITTED BY THE PETITIONER Exhibit P8 TRUE COPY OF INTIMATION DATED 14.12.2020 WHICH APPEARED IN THE PORTAL. WP(C) Nos.820, 829, 865 & 981/2022 10 APPENDIX OF WP(C) 981/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 FOR THE A.Y.2002-03. Exhibit P2 TRUE COPY OF ORDER DATED 27.11.2008 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS). Exhibit P3 TRUE COPY OF ORDER DATED 30.07.2010 ISSUED BY THE INCOME TAX APPELLATE TRIBUNAL. Exhibit P4 TRUE COPY OF ORDER DATED 28.09.2018 ISSUED BY PRINCIPAL COMMISSIONER OF INCOME TAX, THRISSUR. Exhibit P5 TRUE COPY OF FORM NO.1 AND 2 FOR THE YEAR 2002-03. Exhibit P6 TRUE COPY OF ORDER DATED 17.08.2021 ISSUED BY THE 3RD RESPONDENT. Exhibit P7 TRUE COPY OF REPLY DATED 19.08.2021 SUBMITTED BY THE PETITIONER. Exhibit P8 TRUE COPY OF INTIMATION DATED 14.12.2020 WHICH APPEARED IN THE PORTAL. WP(C) Nos.820, 829, 865 & 981/2022 11 APPENDIX OF WP(C) 820/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF ASSESSMENT ORDER DATED 31.12.2007 FOR THE A.Y.2005-16 Exhibit P2 TRUE COPY OF ORDER DATED 27.11.2008 ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) Exhibit P3 TRUE COPY OF ORDER DATED 30.07.2010 ISSUED BY THE INCOME TAX APPELLATE TRIBUNAL Exhibit P4 TRUE COPY OF ORDER DATED 28.09.2018 ISSUED BY PRINCIPAL COMMISSIONER OF INCOME TAX, THRISSUR Exhibit P5 TRUE COPY OF FORM NO.1 AND 2 FOR THE YEAR 2005-06 Exhibit P6 TRUE COPY OF ORDER DATED 17.08.201 ISSUED BY THE 3RD RESPONDENT Exhibit P7 TRUE COPY OF REPLY DATED 19.08.2021 SUBMITTED BY THE PETITIONER Exhibit P8 TRUE COPY OF INTIMATION DATED 14.12.2020 WHICH APPEARED IN THE PORTAL "