Sastha Gold Works V. Deputy Commissioner of Income Tax, National E-Assessment Centre and Income Tax Officer, Ward 2(1)

WP(C)/10704/2021

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M/S. Sastha Gold Works, represented by its partner Raju K.S., filed a writ petition challenging the assessment order issued by the Income Tax Department. The petitioner argued that their request for additional time to submit necessary documents was not considered, leading to a violation of natural justice. The Income Tax Department contended that the petitioner was deliberately delaying the proceedings. The court found that the petitioner's request for time was not acknowledged before the assessment was completed, thus violating the principles of natural justice.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 795447 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 14-03-2024
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH; CYRIAC TOM
• Assessee Lawyers: A KUMAR; P J ANILKUMAR; G MINI; P S SREE PRASAD
• Keywords: Assessment Order; Delay tactics; Natural Justice; Show cause notice
• Section: 143(3)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. THURSDAY, THE 14TH DAY OF MARCH 2024 / 24TH PHALGUNA, 1945 WP(C) NO. 10704 OF 2021 PETITIONER: M/S. SASTHA GOLD WORKS VI/628B, VATTANTHRA, ALAGAPPANAGAR, THRISSUR-680 302, REPRESENTED BY ITS PARTNER RAJU K.S. BY ADVS. SRI.A.KUMAR SRI.P.J.ANILKUMAR SMT.G.MINI(1748) SRI.P.S.SREE PRASAD RESPONDENTS: 1 DEPUTY COMMISSIONER OF INCOME TAX NATIONAL E-ASSESSMENT CENTRE, ROOM NO. 401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI -110 003. 2 INCOME TAX OFFICER, WARD 2(1), AAYAKAR BHAVAN, SAKTAN THAMPURAN NAGAR, THRISSUR-680 001. BY ADVS JOSE JOSEPH, SC, FOR INCOME TAX CYRIAC TOM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) No.10704/2021 -:2:- J U D G M E N T The petitioner has approached this Court challenging Ext.P4 order of assessment issued under the provisions of the Income-tax Act, 1961 for the assessment year 2018-2019. The only ground upon which the assessment is challenged is violation of principles of natural justice. 2. According to the petitioner, on receipt of Ext.P1 show cause notice, the petitioner had submitted Ext.P2 request for 15 days time (till 19-04-2021) to produce certain details. It is submitted that Ext.P3 shows that Ext.P2 was received by the assessing authority. It is submitted that, however, by Ext.P4, the assessment was completed on 08-04-2021 without considering Ext.P2 request made by the petitioner. 3. The learned Standing Counsel appearing for the Income-tax Department would submit that the petitioner is not entitled to any relief. It is submitted that several opportunities were given to the petitioner, as is evident W.P.(C) No.10704/2021 -:3:- from the impugned assessment order. It is submitted that the petitioner was purposefully trying to delay the completion of proceedings and therefore the request of the petitioner in Ext.P2 could not be considered. It is submitted that if the petitioner in any manner aggrieved by Ext.P4 order of assessment, it is for the petitioner to approach the Appellate Authority by filing a duly constituted appeal. 4. Having heard the learned counsel for the petitioner and the learned Standing Counsel for the Income-tax department, I am of the view that the petitioner is entitled to succeed. It is clear from Exts.P2 and P3 that the petitioner had made a request for grant of 15 days time to produce certain details before the assessing authority. The request was for time till 19-04-2021 to produce the details. However, the assessing authority without favouring the petitioner with any reply to Ext.P2 completed the assessment on 08-04-2021. This is clearly a violation of principles of natural justice. Therefore, Ext.P4 can be set aside notwithstanding the availability of any alternative W.P.(C) No.10704/2021 -:4:- remedy. 5. Accordingly, Ext.P4 will stand quashed and the assessment of the petitioner for the assessment year 2018-2019 will stand restored to the file of the 1st respondent, who shall pass fresh orders after affording an opportunity of hearing to the petitioner and providing to the petitioner an opportunity to produce documents in support of its claim. The petitioner shall upload the necessary documents within a period of one week from the date of receipt of a certified copy of this judgment. Thereafter, the 1st respondent shall complete the assessment proceedings afresh as above. Writ petition is disposed of accordingly.. Sd/- GOPINATH P . JUDGE ats W.P.(C) No.10704/2021 -:5:- APPENDIX OF WP(C) 10704/2021 PETITIONER’S EXHIBITS EXHIBIT P1 TRUE COPY OF THE SHOW CAUSE NOTICE, DATED 30.03.2021 ISSUED BY 1ST RESPONDENT. EXHIBIT P2 TRUE COPY OF THE REQUEST DATED 05.04.2021 TO THE 1ST RESPONDENT. EXHIBIT P3 TRUE COPY OF SCREEN SHOT OF THE DASH BOARD INDICATING THE RECEIPT OF THE RESPONSE. EXHIBIT P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 08.04.2021 ISSUED BY 1ST RESPONDENT. EXHIBIT P5 TRUE COPY OF THE PENALTY NOTICE DATED 08.04.2021 ISSUED BY 1ST RESPONDENT. "