Suresh Puthan Veettil V. Income Tax Officer, Ward-I and Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, Assessment Unit, Income Tax Department, National Faceless Assessment Centre, New Delhi and Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, National Faceless Assessment Centre, Income Tax Department, New Delhi

WP(C)/7135/2024

AI Insights

The case involves Suresh Puthan Veettil, a petitioner and assessee under the Income Tax Act, 1961, who was engaged in real estate transactions and failed to file a return for the assessment year 2018-19 despite significant financial transactions. The Income Tax Department reopened his case under Section 147 of the I.T Act, 1961, and issued notices under Section 148, which the petitioner did not adequately respond to. The assessment was completed under Section 147 read with Sections 144 and 144B, leading to the petitioner challenging the assessment order in the High Court. The primary contention was the lack of an opportunity for a personal hearing, which the court found to be unsubstantiated as the petitioner had not opted for such a hearing initially.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 676732 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-02-2024
• Assessment Year: misc
• Other Referred Cases: Genesis Institute of Medical Science Private Limited vs Income Tax Officer, W.P.(C) 21424/2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CHRISTOPHER ABRAHAM; P R AJITHKUMAR
• Assessee Lawyers: K N SREEKUMARAN; P J ANILKUMAR; N SANTHOSHKUMAR
• Keywords: Assessment; Financial transactions; Financial transactions; Income Tax; Opportunity of Hearing; Re-opening
• Section: 147; 148; 144; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 23RD DAY OF FEBRUARY 2024 / 4TH PHALGUNA, 1945 WP(C) NO. 7135 OF 2024 PETITIONER/S: SURESH PUTHAN VEETTIL, AGED 63 YEARS PARTHASARATHY AMBADY LUXURY VILLAS., CHIRAKKAL- PO, KANNUR, PIN - 670011 BY ADVS. K.N.SREEKUMARAN P.J.ANILKUMAR (A-1768) N.SANTHOSHKUMAR RESPONDENT/S: 1 INCOME TAX OFFICER, WARD-I , AAYKAR BHAVAN , MELE CHOVVA, KANNOTHUMCHAL., KANNUR, PIN - 670006 2 ADDITIONAL/JOINT/DEPUTY/ASSISTANTCOMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE., NEW DELHI, PIN - 100001 3 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE , INCOME TAX DEPARTMENT, NEW DELHI, PIN - 100001 BY ADVS. CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT P.R.AJITH KUMAR OTHER PRESENT: CHRISTOPHER ABRAHAM-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC No 7135 of 2024 2 JUDGMENT Dated this the 23rd day of February, 2024 The petitioner is an assessee under the provisions of the Income Tax Act, 1961 (hereinafter referred to as I.T Act, 1961) is engaged in the activities of commission agency and broker for real estate. The petitioner had carried out financial transactions of huge amount in the assessment year 2018-19. However, the petitioner did not file return of his income for the assessment year 2018-19. As per the information available in the Insight Portal and looking at the financial transaction of huge proportions, the petitioner’s case was re-opened under Section 147 of the I.T Act,1961. A notice under Section 148 was issued to the petitioner. However, the petitioner did not file any reply to the said notice. Thereafter, an order 148 A(d) was passed recording the reasons for re- opening the assessment of the petitioner. The assessment order came to be completed in Ext.P9 order dated 06.02.2024 under Section 147 read with Section 144 and 144B or the I.T Act. WPC No 7135 of 2024 3 2. The petitioner has approached this Court impugning the said assessment order. The ground on which the petitioner has filed this writ petition is that the petitioner was not afforded an opportunity of hearing before finalization of the assessment order. The assessment order would disclose that the petitioner did not file reply to the notice under Sections 148 and 142 (1)of the I.T Act, despite those notices having been served. The petitioner was granted several opportunities to explain the source of cash deposits with respective ledgers, confirmations and bank contra entries, source of time deposit with respective ledgers, confirmations, and bank contra entries etc., The petitioner did not explain and justified the source of cash deposit of huge sum of Rs.1,91,64,111/- and no return of income was filed as mentioned above. 3. However, the petitioner filed submissions in respect of some transactions, these submissions have been taken note of in the impugned assessment order. The petitioner was granted an opportunity of hearing as WPC No 7135 of 2024 4 per the Ext.P7 order. However the petitioner did not opt for personal hearing as per the procedure prescribed under Section 144B. Admitted facts are that the petitioner did not respond to any of the notices except for filing the reply and did not opt for the personal hearing as provided under Section 144 B. Subsequent request for personal hearing is of no relevance, if at the time of reply, the petitioner does not opt for personal hearing. In view thereof, I find no substance in the present writ petition. Therefore, the writ petition is hereby dismissed. Sd/- DINESH KUMAR SINGH JUDGE AP WPC No 7135 of 2024 5 APPENDIX OF WP(C) 7135/2024 PETITIONER EXHIBITS Exhibit-P1 TRUE COPY OF THE NOTICE U/S 148 DATED 04..05..2022 BEARING DIN: ITBA/AST/S/148/1/2022-23/1042932673(1) ISSUED BY THE 1ST RESPONDENT Exhibit-P 2 TRUE COPY OF THE NOTICE DATED 26..05..2023 WITH DIN:ITBA/AST/F/142(1)2023- 24/1053211891(1) ISSUED BY THE 2ND RESPONDENT . Exhibit-P 3 TRUE COPY OF THE RESPONSE ALONG WITH SUPPORTING ANNEXURE FILED BY THE PETITIONER DATED 04..08..2023 VIDE E-ACKNOWLEDGEMENT NUMBER:168760631070823 AGAINST EXT-P2 . Exhibit-P 4 TRUE COPY OF THE NOTICE DATED 05..10..2023 VIDE DIN:ITBA/AST/F/142(1)2023- 24/1056811139(1) ISSUED BY THE 2ND RESPONDENT. Exhibit-P 5 TRUE COPY OF THE RESPONSE ALONG WITH RELEVANT ANNEXURE FILED BY THE PETITIONER DATED 12..10..2023 VIDE E-ACKNOWLEDGEMENT NUMBER: 40325728121023 AGAINST EXT-P4 . Exhibit-P 6 TRUE COPY OF THE NOTICE DATED 06..12..2023 WITH DIN:ITBA/AST/F/147(SCN)/2023- 24/1058518851(1) Exhibit -P7 TRUE COPY OF THE REPLY DATED 09..12..2023 FILED AGAINST EXT-P6 NOTICE THROUGH ONLINE PORTAL VIDE E-ACKNOWLEDGEMENT NUMBER- 551493391131223 ALONG WITH RELEVANT ANNEXURE . Exhibit-P 8 TRUE COPY OF THE ADDITIONAL DOCUMENTS FILED ON 09..12..2023 IN SUPPORT OF EXT-P7 THROUGH ONLINE PORTAL VIDE E- ACKNOWLEDGEMENT NUMBER-551569581131223 ALONG WITH RELEVANT ANNEXURE . Exhibit-P 9 TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH COMPUTATION STATEMENT BEARING DIN: ITBA/AST/S/147/2023-24/1060546091(1) & ITBA/AST/S/183/2023-24/1060546178(1) DATED 06..02..2024 FOR THE ASSESSMENT YEAR 2018- 19 ISSUED BY THE 2ND RESPONDENT. Exhibit -P10 TRUE COPY OF THE STANDARD OPERATING PROCEDURE(SOP) FOR ASSESSMENT UNIT(AU) UNDER THE FACELESS ASSESSMENT PROVISIONS OF SECTION144B OF THE INCOME TAX ACT DATED WPC No 7135 of 2024 6 03..08..2022 ISSUED BY CBDT Exhibit-P 11 TRUE COPY OF THE JUDGMENT IN GENESIS INSTITUTE OF MEDICAL SCIENCE PRIVATE LIMITED VS INCOME TAX OFFICER, W.P.(C) 21424/2023 DATED 24..11..2023 "