LA� CASIGNE INFRA DEVELOPERS PVT. LTD, V. UNION OF INDIA,

WP(C)/14923/2022

AI Insights

The case involves Simix Francis, who challenged an assessment order issued by the National Faceless Assessment Centre under the Income Tax Act, 1961, for the assessment year 2013-14. The petitioner argued that the time granted to respond to the Show Cause Notice was insufficient, violating the Standard Operating Procedure which requires at least seven days for filing a reply. The court found merit in the petitioner's argument, noting the procedural lapse and remanded the case back to the assessment authority for compliance with the prescribed procedures.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 724519 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 18-01-2024
• Assessment Year: misc
• Other Referred Cases: Aneesh v Union of India and others
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MANU S; JOSE JOSEPH; CHRISTOPHER ABRAHAM; P K MENON
• Assessee Lawyers: K I MATHER; DIVYA RAVINDRAN; K ASOKAN
• Keywords: E-assessment; Faceless assessment; Income Tax; Natural Justice; Show cause notice
• Section: 147; 148; 144; 142(1); 143(2); 144B

Judgement Text

"WPC No.14546 of 2022 & Conn.cases -: 1 :- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 18TH DAY OF JANUARY 2024 / 28TH POUSHA, 1945 WP(C) NO. 14546 OF 2022 PETITIONER: SIMIX FRANCIS,AGED 44 YEARS S/O. FRANCIS K.S.,KUNNATH HOUSE, VAZHAKKULAM P.O. MUVATTUPU- ZHA, KERALA, PIN - 686670 BY ADV K.I.MAYANKUTTY MATHER RESPONDENTS: 1 UNION OF INDIA,REPRESENTED BY ITS SECRETARY, MINISTRY OF FI- NANCE, NORTH BLOCK, NEW DELHI, PIN - 110001 2 THE NATIONAL FACELESS ASSESSMENT CENT, RE, MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA ROAD,NEW DELHI-110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER OF IN- COME TAX (NAFAC) 3 THE ADDITIONAL/ JOINT/ DEPUTY COMMISSIONER OF INCOME TAX,IN- COME TAX OFFICER, NATIONAL E-ASSESSMENT CENTER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E- RAMP, JAWAHARLAL STADIUM, NEW DELHI-110003. 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI-682018. 5 THE INCOME TAX OFFICER,NON CORP WARD 2(5), KOCHI, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI-682018. BY ADVS. SRI.MANU.S, CGC JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.01.2024, ALONG WITH WP(C).13093/2022, 14923/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.14546 of 2022 & Conn.cases -: 2 :- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 18TH DAY OF JANUARY 2024 / 28TH POUSHA, 1945 WP(C) NO. 13093 OF 2022 PETITIONER: ABDUL ANVAR,AGED 36 YEARS,NASCO TRADING KAVUMPADY ROAD, POST OFFICE JUNCTION MUVATTUPUZHA, ERNAKULAM -686661. KERALA. BY ADV DIVYA RAVINDRAN RESPONDENTS: 1 NATIONAL FACELESS ASSESSMENT CENTRE, MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA ROAD NEW DELHI 110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMIS- SIONER OF INCOME TAX (NAFAC). 2 THE ADDITIONL /JOINT/DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL E - ASSESSMENT CENTER, IN- COME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E- RAMP, JAWAHARLAL STADIUM, NEW DELHI 110003. 3 THE PRINCIPAL, CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI 682018. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.01.2024, ALONG WITH WP(C).14546/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.14546 of 2022 & Conn.cases -: 3 :- IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 18TH DAY OF JANUARY 2024 / 28TH POUSHA, 1945 WP(C) NO. 14923 OF 2022 PETITIONER: LA' CASIGNE INFRA DEVELOPERS PVT. LTD, AGED 59 YEARS, HAVING ITS PRESENT ADDRESS IN MRRA 40C, KAR- GIL ROAD,VAZHAKKALA, KAKKANAD-682030, REPRESENTED BY ITS MANAGING DIRECTOR. BY ADVS. K.I.MAYANKUTTY MATHER S.PARVATHI UTHARA ASOKAN RESPONDENTS: 1 UNION OF INDIA,REPRESENTED BY ITS SECRETARY, MINISTRY OF FI- NANCE, NORTH BLOCK, NEW DELHI, PIN - 110001 2 THE NATIONAL FACELESS ASSESSMENT CENTRE, MAYUR BHAWAN, CONNAUGHT LANE, BARAKHAMBA ROAD, NEW DELHI-110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER OF IN- COME TAX (NAFAC)., PIN - 110001 3 THE ADDITIONAL/ JOINT/ DEPUTY COMMISSIONER OF INCOME TAX,IN- COME TAX OFFICER, NATIONAL E-ASSESSMENT CENTER, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO. 401, 2ND FLOOR, E- RAMP, JAWAHARLAL STADIUM, NEW DELHI-110003., PIN - 110003 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI-682018., PIN - 682018 BY ADVS. SRI.MANU.S, CGC CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT JOSE JOSEPH, SC, INCOME TAX DEPARTMENT, KERALA P.K.RAVINDRANATHA MENON (SR.) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.01.2024, ALONG WITH WP(C).14546/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No.14546 of 2022 & Conn.cases -: 4 :- JUDGMENT [WPC Nos.14546, 13093 and 14923 of 2022] WPC No.14546 of 2022 The present writ petition has been filed challenging Ext. P11 assessment order dated 26.03.2022 pertaining to the assessment year 2013-14. 2. The petitioner is an individual assessee bearing PAN AAMPF2152Q. For the assessment year 2013-14, the petitioner was issued with a notice dated 29.03.2021 under Section 148 of the Income Tax Act,1961(The ‘Act’ for short) proposing to assess income for that year and directed to file return within 30 days from the date of the notice. In response to the notice, the petitioner filed return declaring taxable income of Rs.2,38,400/- and paid tax as per the return. In continuation of the proceedings under Section 148 of the Act, a notice dated 22.10.2021 was issued under section 143(2) read with Section 147 seeking an explanation regarding the alleged cash deposits made by the petitioner in the Savings bank WPC No.14546 of 2022 & Conn.cases -: 5 :- account and Banking companies. Thereafter notices under Section 142(1) of the Act were issued by the third respondent. The proceedings were continued under the E-assessment scheme and hence notices were issued electronically in the E- mail ID of the petitioner. The department took steps to serve the notices by post and on receipt of the same petitioner took steps to respond and on 09.02.2022 petitioner filed a reply. Thereafter Ext.P-10 show cause notice was issued on 23.03.2022 stipulating to file objections on or before 25.03.2022. 3. Learned Counsel for the petitioner submits that only two days were granted to the petitioner to file an objection to the Draft Assessment Order and the final assessment order came to be passed on 26.03.2022. The learned counsel for the petitioner has brought to the notice of this Court that the Standard Operating Procedure (SOP) for the Assessment unit under Faceless Assessment provisions under Section 144B of the Act 1961. Clause N 13.1 would disclose that at least seven WPC No.14546 of 2022 & Conn.cases -: 6 :- days should be granted for filing a reply to the Show Cause Notice. This Court has also taken the view regarding a minimum of seven days to be granted for filing reply to the Show Cause Notice in the Judgment dated 04.12.2023 in W.P.(C) No.31553 of 2022 in Aneesh v Union of India and others. 4. Considering the aforesaid fact that the petitioner was not afforded a reasonable opportunity of seven days to file reply to the Show Cause Notice dated 26.03.2022 issued under Section 148 of the Act. I find some substance in the submissions of the learned counsel for the petitioner regarding the violation of the principles of natural justice. On this ground alone this writ petition is allowed. 5. The impugned assessment order and further proceedings are set aside and the matter is remanded back to the National Faceless Assessment Centre, Delhi to provide an opportunity for filing reply by the petitioner to Show Cause Notice dated 26.03.2022 in Ext.P10. The National Faceless Assessment Centre is directed to provide a link for filing reply to the Show WPC No.14546 of 2022 & Conn.cases -: 7 :- Cause Notice dated 26.02.2022 in Ext.P-10 by the petitioner. After the link is activated, the petitioner should file reply within seven days thereafter. 6. It is made clear that no further opportunity shall be granted to the petitioner and thereafter, the National Faceless Assessment Centre Delhi shall proceed to finalise the assessment order under Section 147 read with Section 144 of the Income Tax Act. With the aforesaid directions and observations, WP(C) Nos.14546, 13093 and 14923 of 2022 stands finally disposed of. Sd/- DINESHKUMAR SINGH JUDGE CSS/ WPC No.14546 of 2022 & Conn.cases -: 8 :- APPENDIX OF WP(C) 13093/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE U/S 142/(1) DATED 15.7.2021 ISSUED BY THE 2ND RESPONDENT. Exhibit P2 TRUE COPY OF REPLY UPLOADED AGAINST THE EXT P1 NOTICE DATED 25.9.2021. Exhibit P3 TRUE COPY OF THE NOTICE U/S 142 (1) ALONG WITH THE QUESTIONNAIRE DATED 2.3.2022 ISSUED BY THE 2ND RESPONDENT. Exhibit P4 TRUE COPY OF THE REPLY TO EXT P3 NOTICE DATED 8.3.2022 SUBMITTED BY THE PETITIONER. Exhibit P5 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 25.03.2022 ISSUED BY THE 2ND RESPONDENT. Exhibit P6 TRUE COPY OF THE REPLY DATED 26.03.2022 FILED BY THE PETITIONER. Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.3.2022 ISSUED BY THE 2ND RESPONDENT. WPC No.14546 of 2022 & Conn.cases -: 9 :- APPENDIX OF WP(C) 14923/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE E-MAIL COMMUNICATION RE- CEIVED BY THE PETITIONER WITHOUT ANY ATTACH- MENT DATED 28.3.2022 Exhibit P2 TRUE COPY OF THE BALANCE SHEET FOR THE FINAN- CIAL YEAR ENDING WITH 31.03.2014 Exhibit P3 TRUE COPY OF THE ONLINE SCREENSHOT NOTICE U/S 142 (1) OF THE INCOME TAX ACT ISSUED BY THE 1ST RESPONDENT DATED 24.12.2021 Exhibit P4 TRUE COPY OF THE REPLY SUBMITTED BY THE PETI- TIONER IN RESPONSE TO EXT.P3 NOTICE DATED 20.01.2022 Exhibit P5 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RE- SPONDENT TO THE PETITIONER DATED 20.03.2022 Exhibit P6 TRUE COPY OF THE REPLY SUBMITTED BY THE PETI- TIONER ALONG WITH ACKNOWLEDGEMENTS OF RE- SPONSE DATED 22.03.2022 Exhibit P7 TRUE COPY OF THE SHOW CAUSE NOTICE ISSUED BY THE 3RD RESPONDENT AND THE SCREENSHOT OF THE E-MAIL DATED 26.03.2022 Exhibit P8 TRUE COPY OF THE ONLINE REPLY GIVEN BY THE PETITIONER TO THE 3RD RESPONDENT ON 28.03.2022 Exhibit P9 TRUE COPY OF THE ASSESSMENT ORDER UNDER SEC- TION 147 READ WITH SS. 144 AND 144B OF THE ACT ALONG WITH DEMAND NOTICE UNDER SECTION 156 OF THE ACT AND COMPUTATION SHEET ISSUED BY THE 3RD RESPONDENT DATED 30.03.2022 Exhibit P10 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RE- SPONDENT PROPOSING IMPOSITION OF PENALTY UN- DER SECTION 271(1)(C) DATED 30.03.2022 Exhibit P11 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RE- SPONDENT PROPOSING IMPOSITION OF PENALTY UN- DER SECTION 271B DATED 30.03.2022 Exhibit P12 TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RE- SPONDENT PROPOSING IMPOSITION OF PENALTY UN- DER SECTION 271F DATED 30.03.2022 WPC No.14546 of 2022 & Conn.cases -: 10 :- Exhibit P13 TRUE COPY OF THE INTERIM ORDER IN W.P.(C) NO. 14546/2022 DATED 26.04.2022 PASSED BY THIS HON'BLE COURT WPC No.14546 of 2022 & Conn.cases -: 11 :- APPENDIX OF WP(C) 14546/2022 PETITIONER EXHIBITS ExhibitP1 TRUE COPY OF THE NOTICE UNDER SECTION 148 OF THE ACT ISSUED BY THE 5TH RESPONDENT DATED 29.3.2021 ExhibitP2 TRUE COPY OF THE RETURN OF INCOME FILED BY THE PETITIONER FOR THE AY 2013-14 DATED 29.4.2021 ExhibitP3 TRUE COPY OF THE NOTICE ISSUED BY THE 5TH RE- SPONDENT DATED 22.10.2021 ExhibitP4 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RE- SPONDENT DATED 17.11.2021 ExhibitP5 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RE- SPONDENT DATED 14.12.2021 ExhibitP6 TRUE COPY OF THE ACKNOWLEDGMENT REGARDING THE FILING OF THE RESPONSE/ RESPONSE TO THE NO- TICE UNDER SECTION 143(2) OF THE ACT DATED 8.11.2021 ExhibitP7 TRUE COPY OF THE ACKNOWLEDGMENT ABOUT THE FILING OF THE REPLY / RESPONSE TO THE NOTICE UNDER SECTION 142(1) OF THE ACT, DATED 20.12.2021 ExhibitP8 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RE- SPONDENT TO THE PETITIONER DATED 09.02.2022 ExhibitP9 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RE- SPONDENT TO THE PETITIONER DATED 17.02.2022 ExhibitP10 TRUE COPY OF THE DRAFT ASSESSMENT ORDER IS- SUED BY THE 3RD RESPONDENT DATED 23.3.2022 ExhibitP11 TRUE COPY OF THE ASSESSMENT ORDER UNDER SEC- TION 147 READ WITH SECTIONS 144 AND 144B OF THE ACT ALONG WITH DEMAND NOTICE AND COMPUTA- TION SHEET ISSUED BY THE 3RD RESPONDENT DATED 26.03.2022 ExhibitP12 TRUE COPY OF THE INTERIM ORDER IN W.P.(C) NO. 13368/2022 OF THIS HON'BLE COURT, DATED 8.4.2022 WPC No.14546 of 2022 & Conn.cases -: 12 :- "