SYNTHITE INDUSTRIES PRIVATE LIMITED V. THE ADDITIONAL / JOINT /DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER

WP(C)/12756/2022

AI Insights

The case involves Synthite Industries Private Limited, which challenged an assessment order (Ext. P7) issued by the Income Tax Officer, National Faceless Assessment Centre, New Delhi. The petitioner argued that the order was passed in violation of the principles of natural justice, as it followed a show cause notice that required a response by the next day, leaving no reasonable time for a meaningful reply. The High Court of Kerala at Ernakulam found merit in the petitioner's argument and quashed the assessment order, directing a re-assessment process that allows adequate time for the petitioner to respond.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 766338 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 10-02-2023
• Assessment Year: misc
• Other Referred Cases: WP(C) No.12052 of 2021
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: JOSEPH MARKOSE; JOSE JOSEPH
• Assessee Lawyers: JOSEPH MARKOSE; ABRAHAM MARKOS; V MARKOS; ISAAC ALEXANDER; JOSEPH SHARAD; SHARAD KODANTHARA
• Keywords: Assessment Order; Natural Justice; Show cause notice
• Section: 142(1); 263

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI FRIDAY, THE 10TH DAY OF FEBRUARY 2023 / 21ST MAGHA, 1944 WP(C) NO. 12756 OF 2022 PETITIONER: SYNTHITE INDUSTRIES PRIVATE LIMITED VIII 683-A CORPORATE HOUSE, KADAYIRUPPU, KOLENCHERRY, ERNAKULAM-682 311, KERALA , REPRESENTED BY ITS MANAGING DIRECTOR MR. VARGHESE JACOB. BY ADVS. JOSEPH MARKOSE (SR.) ABRAHAM JOSEPH MARKOS V.ABRAHAM MARKOS ISAAC THOMAS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA RESPONDENT 1 THE ADDITIONAL / JOINT /DEPUTY /ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI-110 001. 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI-110 001. 3 DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2(1), KOCHI-682 018. 4 THE PRINCIPAL COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, I.S.PRESS ROAD, KOCHI-682 018. SRI. JOSEPH MARKOSE, SR. SRI. JOSE JOSEPH, SC. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.02.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 12756 OF 2022 2 T . R. RA V I , J . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - WP ( C ) No . 1 2 7 5 6 o f 2 0 2 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Da t e d t h i s t h e 1 0 t h d a y o f F e b r u a r y , 2 0 2 3 J UDGME NT T h e wr i t p e t i t i o n h a s b e e n fi l e d c h a l l e n g i n g E x t . P 7 o r d e r o n t h e g r o u n d t h a t i t i s v i o l a t i v e o f t h e p r i n c i p l e s o f n a t u r a l j u s t i c e . A d mi t t e d l y , E x t . P 7 wh i c h i s i s s u e d o n 2 5 / 0 3 / 2 0 2 2 wa s p r e c e d e d b y a s h o w c a u s e n o t i c e d a t e d 2 3 / 0 3 / 2 0 2 2 wh i c h r e q u i r e d t h e a s s e s s e e t o s h o w c a u s e b y 2 4 . 0 3 . 2 0 2 2 . T h e s u b mi s s i o n o f t h e p e t i t i o n e r i s t h a t t h e v e r y p u r p o s e o f i s s u i n g a s h o w c a u s e n o t i c e i s l o s t wh e n t h e a s s e s s e e i s a s k e d t o s h o w c a u s e t h e n e x t d a y a n d a n o r d e r i s p a s s e d o n t h e v e r y n e x t d a y . I fi n d c o n s i d e r a b l e f o r c e i n t h e a b o v e s u b mi s s i o n . T h e r e q u i r e me n t o f l a w i s t h a t t h e a s s e s s e e s h o u l d b e g i v e n s u f fi c i e n t t i me t o s h o w c a u s e . T h e i s s u a n c e o f a s h o w c a u s e n o t i c e i s n o t a me r e f o r ma l i t y t o p r e c e d e a n o r d e r wh i c h i s a l r e a d y p r e - d e c i d e d . A s s u c h , E x t . P 7 c a n n o t b e l e g a l l y s u s t a i n e d . WP(C) NO. 12756 OF 2022 3 I n t h e r e s u l t , E x t . P 7 i s q u a s h e d . T h e r e wi l l b e a d i r e c t i o n t o t h e a p p r o p r i a t e a u t h o r i t y t o r e - d o t h e p r o c e s s i n a c c o r d a n c e wi t h t h e p r o c e d u r e l a i d d o wn b y l a w a f t e r p e r mi t t i n g t h e p e t i t i o n e r t o s h o w c a u s e i n a me a n i n g f u l ma n n e r . S d / - T . R. RA V I s n J UDGE WP(C) NO. 12756 OF 2022 4 APPENDIX OF WP(C) 12756/2022 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 20.12.2018 FOR AY 2016-17 ISSUED BY THE 3RD RESPONDENT. Exhibit P2 TRUE COPY OF THE ORDER U/S 263 OF THE 4TH RESPONDENT DATED 8.3.2021. Exhibit P3 TRUE COPY OF THE NOTICE U/S 142(1) DATED 30.9.2021 ISSUED BY THE 1ST RESPONDENT. 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 23.3.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P6 TRUE COPY OF THE INTERIM REPLY DATED 24.3.2022 OF THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 25.3.2022 PASSED BY THE 1ST RESPONDENT. Exhibit P8 TRUE COPY OF THE JUDGMENT DATED 11.1.2022 IN WP(C) NO.12052 OF 2021. RESPONDENT'S EXHIBITS : NIL //TRUE COPY// PA TO JUDGE "