Synthite Industries Private Limited V. The Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, National E-Assessment Centre, New Delhi and The Principal Chief Commissioner of Income Tax, National E-Assessment Centre, New Delhi and Deputy Commissioner of Income Tax, Corporate Circle -2(1), Kochi and The Principal Commissioner of Income Tax, Central Revenue Building, I.S. Press Road, Kochi

WP(C)/5229/2024

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Synthite Industries Private Limited, represented by its managing director, filed a writ petition against notices issued under Section 142(1) of the Income Tax Act, 1961, by various income tax authorities. These notices demanded explanations for other unexplained incomes of the petitioner, which were not covered in a previous show cause notice. The petitioner argued that after the assessment order was set aside and remanded back for re-assessment, no further notices could be issued for additional explanations. The court, however, found no substance in this argument, stating that the assessing authority is empowered to issue multiple notices and demand explanations for any unexplained income.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 815902 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 09-02-2024
• Assessment Year: misc
• Other Referred Cases: WP No. 12756/2022, W.P. No. 1859 of 2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: CYRIAC TOM
• Assessee Lawyers: ABRAHAM MARKOS; ISAAC ALEXANDER; JOSEPH SHARAD; JOSEPH V ABRAHAM
• Keywords: Income tax assessment; Jurisdiction; Show cause notice; Unexplained income
• Section: 143(3); 142(1); 263; 144B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 9TH DAY OF FEBRUARY 2024 / 20TH MAGHA, 1945 WP(C) NO. 5229 OF 2024 PETITIONER/S: SYNTHITE INDUSTRIES PRIVATE LIMITED, VIII 683-A CORPORATE HOUSE, KADAYIRUPPU, KOLENCHERRY, ERNAKULAM, KERALA. REPRESENTED BY ITS MANAGING DIRECTOR MR.VARGHESE JACOB., PIN - 682311 BY ADVS. ABRAHAM JOSEPH MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA V.ABRAHAM MARKOS RESPONDENT/S: 1 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI, PIN - 110001 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE,NEW DELHI, PIN - 110001 3 DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE -2(1),KOCHI, PIN - 682018 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S. PRESS ROAD,KOCHI, PIN - 682018 OTHER PRESENT: SRI.CYRIAC TOM -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 5229 OF 2024. 2 J U D G M E N T This is the second round of litigation by the petitioner before this Court. Earlier, the petitioner had approached this Court by filing WP(C) No.12756/2022 against the assessment order passed under Section 143(3) read with Sections 263 and 144B of the Income Tax Act, 1961 ('Act', for short) in Ext.P7 dated 25.3.2022 in respect of the assessment year 2016-17, on the ground that the petitioner was not afforded meaningful and sufficient opportunity to respond to the show cause notice. This Court considering the submissions of the learned counsel for the petitioner, vide judgment dated 10.2.2023, Ext.P8, allowed WP(C) No.12756/2022 and quashed the said assessment order with direction to the authority concerned to re-do the process in accordance with the procedure laid down by law, after permitting the petitioner to show cause in a meaningful manner. WP(C) NO. 5229 OF 2024. 3 2. Now, the petitioner has approached this Court with this writ petition against Exts.P9 and P11 notices issued under Section 142(1) of the Act calling upon the petitioner to give explanation with regard to other issues. Learned counsel for the petitioner submits that once the assessment order was set aside and the matter was remanded back, the assessing authority could not have demanded explanation in respect of other aspects, which may not be part of the earlier show cause notice. He further submits that since the matter was only remanded back to consider the issues, which were sought to be clarified by issuing notice under Section 142(1), a subsequent notice asking for other details is totally without jurisdiction. 3. I find no substance in the submission. There is no bar for the assessing authority to issue more than one notice. This Court has directed for re-doing the process and if the authority has information and materiel regarding WP(C) NO. 5229 OF 2024. 4 other unexplained income of the petitioner, the assessing authority is well within the power to ask for explanation in respect of those income and it cannot be said that the notices impugned are without jurisdiction. In view of the above, I find no substance in the present writ petition, which is hereby dismissed. Pending interlocutory application, if any, in the present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE jg WP(C) NO. 5229 OF 2024. 5 APPENDIX OF WP(C) 5229/2024 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 20.12.2018 FOR AY 2016-17 Exhibit P2 TRUE COPY OF THE ORDER OF THE COMMISSIONER UNDER SECTION 263 DATED 08.03.2021 Exhibit P3 TRUE COPY OF THE NOTICE DATED 30.09.2021 UNDER SECTION 142(1) Exhibit P4 TRUE COPY OF THE REPLY DATED 15.10.2021, WITHOUT ANNEXURES, FURNISHED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P5 TRUE COPY OF THE SHOW CAUSE NOTICE AND DRAFT ASSESSMENT ORDER DATED 23.03.2022 Exhibit P6 TRUE COPY OF THE INTERIM REPLY DATED 24.03.2022 Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 25.03.2022 PASSED BY THE 1ST RESPONDENT Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 10.02.2023 IN WP NO. 12756/22 Exhibit P9 TRUE COPY OF THE NOTICE DATED 05.02.2024 UNDER SECTION 142(1) OF THE INCOME TAX ACT Exhibit P10 TRUE COPY OF THE OBJECTIONS DATED 06.02.2024 FILED BY THE PETITIONER Exhibit P11 TRUE COPY OF THE NOTICE UNDER SECTION 142(1) DATED 06.02.2024 Exhibit P12 TRUE COPY OF THE JUDGMENT DATED 19.01.2024 IN W.P. NO. 1859 OF 2023 "