MANAYANI JOSEPH KURIAN, vs. THE ADDITIONAL / JOINT/ DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER,

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WP(C)/13284/2022HC KeralaKLHC01026702202219 January 2024Author: HONOURABLE MR. JUSTICE D. K. SINGH6 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the assessment orders for assessment years 2013-14 and 2014-15 were vitiated because the assessing authority proceeded with the assessment as if no replies were filed by the petitioner to the show cause notices dated March 23, 2022. Despite the petitioner claiming to have filed replies on March 28, 2022, and placing printouts from the e-filing website as evidence, the assessing authority made additions based on the absence of such replies. The Court found this procedural lapse to be significant. Consequently, the assessment orders were set aside. The matter was remanded back to the assessing authority to pass fresh assessment orders after considering the petitioner's replies filed on March 28, 2022, and affording the petitioner an opportunity of hearing through video conferencing. The assessing authority was directed to provide the necessary link and password for the hearing.

What were the facts?

The petitioner, Manayani Joseph Kurian, filed a writ petition challenging assessment orders for assessment years 2013-14 and 2014-15, passed on March 30, 2022, under Sections 147 read with 144 and 144B of the Income Tax Act, 1961. The assessment orders were based on cash deposits of Rs. 17,60,16,330/- for AY 2013-14 and Rs. 2,09,23,800/- for AY 2014-15, which the revenue proposed to treat as unexplained money. The petitioner claims to have filed replies to the show cause notices issued on March 23, 2022, on March 28, 2022, the last date for filing. However, the assessment orders stated that no replies were filed. Printouts from the e-filing website showing the submission of these replies were placed on record.

What were the issues?

1. Whether the assessment orders passed for assessment years 2013-14 and 2014-15 are vitiated due to the assessing authority proceeding with the assessment without considering the petitioner's replies to the show cause notices, despite the petitioner claiming to have filed them on the due date. (Question of law and fact, turning on Section 144B of the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that they had filed replies to the show cause notices on the last date of filing, March 28, 2022, and that the assessment orders were passed erroneously, stating no replies were received. Evidence of filing was placed on record. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the petitioner's arguments. It notes that the assessment orders mentioned no replies were filed.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 19TH DAY OF JANUARY 2024 / 29TH POUSHA, 1945 WP(C) NO. 13284 OF 2022 PETITIONER/S: MANAYANI JOSEPH KURIAN, AGED 65 YEARS MANAYANI HOUSE, PERUNNA, CHANGANASSERY-686 102, KOTTAYAM DISTRICT BY ADVS. JOSEPH MARKOSE (SR.) V.ABRAHAM MARKOS ISAAC THOMAS P.G.CHANDAPILLAI ABRAHAM ABRAHAM JOSEPH MARKOS ALEXANDER JOSEPH MARKOS SHARAD JOSEPH KODANTHARA RESPONDENT/S: 1 THE ADDITIONAL / JOINT/ DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX, INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI-110 001. 2 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL FACELESS ASSESSMENT CENTRE, NEW DELHI-110 001. 3 INCOME TAX OFFICER, WARD 2, THIRUVALLA, PATHANAMTHITTA DISTRICT-689 101. OTHER PRESENT: SRI.CYRIAC TOM-SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 19.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 13284 OF 2022 2

J U D G M E N T The present writ petition has been filed impugning Exts.P5 and P10 assessment orders for the assessment years 2013-14 and 2014-15, respectively, passed under Sections 147 read with 144 and 144B of the Income Tax Act, 1961 ('Act', for short) on 30.3.2022. The assessment orders would mention that the petitioner was issued notices on 23.3.2022, Exts.P3 and P8, requiring him to show cause as to why cash deposits of Rs.17,60,16,330/- and Rs.2,09,23,800/- made in the financial year 2012-13 relevant to the assessment year 2013-14 and in the financial year 2013-14 relevant to the assessment year 2014-15, respectively, should not be made as additions as unexplained money. Though the petitioner had filed replies/responses in Exts.P4 and P9 to the show cause notices, the assessment orders would mention that no replies were given to the show cause notices dated 23.3.2022. The print outs taken from the e-filing

WP(C) NO. 13284 OF 2022 3 website of the Income Tax Department regarding submission of the replies to the show cause notices by the petitioner have been placed on record.

2.

Considering the aforesaid fact, despite having been filed replies to the show cause notices dated 23.3.2022 on the last date of filing replies, i.e. on 28.3.2022, the assessing authority had proceeded with the assessment as no replies were filed by the petitioner to the said show cause notices. Therefore, the assessment orders at Exts.P5 and P10 are vitiated and are hereby set aside. The matter is remanded back to the assessing authority to pass fresh assessment orders, in accordance with law, after considering the replies filed by the petitioner on 28.3.2022 to the show cause notices dated 23.3.2022 and affording an opportunity of hearing to the petitioner through video conferencing. On remand, the assessing authority will proceed with the matter, expeditiously, and will provide link and password to the petitioner for addressing his

WP(C) NO. 13284 OF 2022 4 submissions in support of his replies to the show cause notices. Pending interlocutory application, if any, in the writ petition stands dismissed. DINESH KUMAR SINGH

JUDGE jg

WP(C) NO. 13284 OF 2022 5

Appendix — schedule of exhibits
APPENDIX OF WP(C) 13284/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 142(1) DATED 10.02.2022 BY THE 1ST RESPONDENT FOR ASSESSMENT YEAR 2013-14. Exhibit P2 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED 28.02.2022 ALONG WITH THE REPLY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P3 TRUE COPY OF THE SHOW CAUSE NOTICE AND DRAFT ASSESSMENT ORDER DATED 23.03.2022 ISSUED BY THE 1ST RESPONDENT. Exhibit P4 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED 28.03.2022 ALONG WITH THE REPLY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER DTED 30.03.2022 TOGETHER WITH COMPUTATION SHEET AND NOTICE OF DEMAND FOR ASSESSMENT YEAR 2013-14 ISSUED BY THE 1ST RESPONDENT. Exhibit P6 TRUE COPY OF THE NOTICE ISSUED UNDER SECTION 142(1) DATED 10.02.2022 BY THE 1ST RESPONDENT FOR ASSESSMENT YEAR 2014-15. Exhibit P7 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED 28.02.2022 ALONG WITH THE REPLY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P8 TRUE COPY OF THE SHOW CAUSE NOTICE AND DRAFT ASSESSMENT ORDER DATED 23.03.2022 ISSUED BY WP(C) NO. 13284 OF 2022 6 THE 1ST RESPONDENT. Exhibit P9 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED 28.03.2022 TOGETHER WITH REPLY FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT. Exhibit P10 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.03.2022 TOGETHER WITH COMPUTATION SHEET AND NOTICE OF DEMAND FOR ASSESSMENT YEAR 2014-15 ISSUED BY THE 1ST RESPONDENT.

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