TDGSM Co-operative Society Ltd No.R.1112 V. The Commissioner of Income Tax, DCIT Circle 1 (1) & TPS and The Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer, National Faceless Assessment Centre

WP(C)/29487/2022

AI Insights

The case involves TDGSM Co-operative Society Ltd, which filed a writ petition against the assessment order issued by the Income Tax Department for the assessment year 2016-2017. The petitioner did not initially file the required returns, and upon reopening of the assessment, failed to respond to several notices. The assessment was completed ex parte due to non-cooperation from the petitioner. The main legal contention raised was the alleged non-receipt of notices by the petitioner, which the court found unconvincing given the established system for communication of such notices. The court dismissed the writ petition, allowing for the possibility of an appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 681470 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 05-12-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P G JAYASHANKAR; PGJ GIRI
• Assessee Lawyers: V P NARAYANAN; ALAN DEV
• Keywords: Assessment Order; Best Judgment Assessment; Failure to file return; Non-cooperation; Notice under section 148; Writ petition
• Section: 148; 144; 142(1); 271(1)(c); 271(1)(b); 271(b); 271 F

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 5TH DAY OF DECEMBER 2023 / 14TH AGRAHAYANA, 1945 WP(C) NO. 29487 OF 2022 PETITIONER/S: TDGSM CO-OPERATIVE SOCIETY LTD NO.R.1112, PARAKKOTT LANE, PATTURAIKKAL, THIRUVAMBADY, THRISSUR REPRESENTED BY ITS SECRETARY JAINY JACOB, PIN - 680022 BY ADVS. V.P.NARAYANAN ALAN PRIYADARSHI DEV RESPONDENT/S: 1 THE COMMISSIONER OF INCOME TAX, DCIT CIRCLE 1 (1) & TPS , AAYKAR BHAVAN , INCOME TAX OFFICE, SAKTHAN THAMPURAN NAGAR , THRISSUR, PIN - 680001 2 THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOMETAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO 401, 2ND FLOOR, E-RAMP, JAWAHARLAL STADIUM, DELHI, PIN - 110003 BY ADVS. ADV. P.G. JAYASHANKAR PGJ KEERTHIVAS GIRI THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 29487 OF 2022 2 JUDGMENT Dated this the 5th day of December, 2023 1.The present writ petition has been filed impugning Ext.P2 assessment order and demand. 2.The petitioner assessee did not file the returns of the assessment year 2016-2017. As per the information received through Multi-layer NMS cases in AIMS module of ITBA, the petitioner case was selected noticing the huge cash deposit during the financial year 2015-2016 and 2016-2017. The assessment of the petitioner case was reopened by issuance of notice under Section 148 of the Income Tax 1961 ( the ‘IT Act’ for short). In response to the said notice, the petitioner had filed return of income for the assessment year 2016-2017 on 29.04.2021, declaring total income at ‘Nil’ after claiming deduction under Chapter VIA (80P) of Rs. 2,64,133/-. Subsequently, the petitioner was issued notices under Section 142(1) of the IT Act dated 08.07.2021 and 18.11.2021. However, the petitioner failed to respond with the notices. Finally one more opportunity by the notice under Section 142(1) of the Act was given to the petitioner on 24.02.2022. The petitioner did not avail of the opportunities of being heard, and the petitioner did not cooperate with the proceedings. Therefore, keeping in view of the time limit to complete the assessment, the best judgment WP(C) NO. 29487 OF 2022 3 assessment order was passed under Section 144 of the IT Act exparte, the petitioner did not submit the return in response to the notice under Section under Section 148 of the IT Act. 3.Learned counsel for the petitioner submits that the petitioner did not receive the notice. However, this contention cannot be accepted in view of the system which has been placed for communication of notices , orders etc., therefore I do not find any ground to entertain this writ petition against the impugned assessment order. In the result, this writ petition is dismissed, leaving it open to the petitioner to avail remedy of appeal if any, or such other remedies are available. If the petitioner approached the appellate, the appellate authority should proceed to decide the appeal in accordance with law, expeditiously. Sd/- DINESH KUMAR SINGH JUDGE SJ WP(C) NO. 29487 OF 2022 4 APPENDIX OF WP(C) 29487/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF CERTIFICATE OF REGISTRATION OF THE SOCIETY BY JOINT REGISTRAR OF CO-OP SOCIETIES (GENERAL) THRISSUR Exhibit P2 TRUE COPY OF ASSESSMENT ORDER DATED 25.3.2022 FOR AY 2016-17 Exhibit P3 TRUE COPY OF NOTICE DATED 10.8.2022ISSUED BY THE 1ST RESPONDENT Exhibit P3(a) TRUE COPY OF REPLY TO NOTICE DT 10.8.2022 UNDER SECTION 274 READ WITH SECTION 271(1) (B) DATED 18.08.2022 Exhibit P4 TRUE COPY OF NOTICE UNDER SECTION 274 READ WITH SECTION 271(1)(C) DATED 10-08-2022 Exhibit P4(a) TRUE COPY OF REPLY TO NOTICE DATED 10-08- 2022 UNDER SECTION 274 READ WITH SECTION 271(1)(C) DATED 18-08-2022 Exhibit P5 TRUE COPY OF NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271B Exhibit P5(a) TRUE COPY OF REPLYDT 18-08-2022 TO NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271B SECTION Exhibit P6 TRUE COPY OF NOTICE DATED 10-08-2022 UNDER SECTION 274 READ WITH SECTION 271F Exhibit P6(a) TRUE COPY OF REPLY DATED 18-08-2022 TO NOTICE UNDER SECTION 274 READ WITH SECTION 271F DATED 10-08-2022 "