T.R PRADEEP WARRIER vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

ITA/172/2012HC KeralaKLHC01024094201218 December 2013Author: HONOURABLE MR.JUSTICE A.M.SHAFFIQUE,HONOURABLE THE CHIEF JUSTICE DR. MANJULA CHELLUR5 pages
AI SummaryRemanded

What were the facts?

This appeal by the assessee, T.R. Pradeep Warrier, challenges an order of the Income Tax Appellate Tribunal (ITAT), Cochin Bench, for the assessment year 2002-03. The ITAT's order, dated 30/11/2011, is the subject of this appeal. The respondent is the Assistant Commissioner of Income Tax, Central Circle-I, Kozhikode. The appeal was admitted for hearing on 18/12/2013. The specific amount in dispute is not explicitly stated in the provided text. The procedural history indicates that the ITAT's order is under challenge before the High Court.

What did the High Court hold?

The High Court held that the ITAT had erred in treating the additional income of Rs. 10,00,000/- declared by the assessee during the survey on 16.01.2002 as income for the assessment year 2003-04. The Court reasoned that the survey was conducted in January 2002, which falls within the financial year 2001-02. Income earned or disclosed during a financial year is to be assessed in the immediately succeeding assessment year. Therefore, the income declared in the financial year 2001-02 should be assessed for the assessment year 2002-03. The ITAT's order was set aside, and the matter was remitted back to the ITAT for fresh consideration on merits. The Court did not decide on the merits of the income itself, but on the correct assessment year. The operative direction was to remand the case to the ITAT.

What were the issues?

1. Whether the ITAT erred in holding that the additional income of Rs. 10,00,000/- declared by the assessee during the survey on 16.01.2002, which was not reflected in the return of income filed for the assessment year 2002-03, could be treated as income of the assessment year 2003-04, despite the survey being conducted in January 2002? Assessee's Contention: The assessee argued that the additional income declared during the survey on 16.01.2002, which falls within the financial year 2001-02 (relevant for assessment year 2002-03), should be assessed in the assessment year 2002-03 and not in the subsequent assessment year 2003-04. The assessee relied on the principle that income earned or disclosed in a particular financial year pertains to the corresponding assessment year. Revenue's Contention: The revenue contended that the ITAT's decision to treat the declared income as belonging to the assessment year 2003-04 was correct. The specific arguments of the revenue are not detailed in the provided text, but it is implied they supported the ITAT's finding.

Which sections of the Income-tax Act were involved?

Section 2(24),Section 15

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HON'BLE THE CHIEF JUSTICE DR. MANJULA CHELLUR & THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE WEDNE AY, THE 18TH DAY OF DECEMBER 2013/27TH AGRAHAYANA, 1935 ITA.No. 172 of 2012 ----------------------- AGAINST THE ORDER IN IT(SS)A.NO. 27/COCH/2008 FOR THE YEAR 2002-03 DATED 30/11/2011 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH .. APPELLANT/RESPONDENT : ------------------------------------------- T.R PRADEEP WARRIER, M/S. LAKSHMI HOSPITAL, DIWANS ROAD, ERNAKULAM. BY ADVS.SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SRI.R.SREEJITH SMT.NIVEDITA A.KAMATH RESPONDENT(S)/APPELLANT: ------------------------------------------------ THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-I, KOZHIKODE-673 001. BY ADV. SRI.JOSE JOSEPH,SC, IT THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 18-12-2013 ALONG WITH ITA.NO. 41/2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss

ITA.NO.172/2012

Appendix — schedule of exhibits
APPENDIX APPELLANT'S ANNEXURES: ANNEX.A: COPY OF ORDER OF ASSESSMENT FOR THE YEAR 2002-03 ISSUED TO THE APPELLANT. ANNEX.B: COPY OF ORDER OF THE COMMISSI

The order continues below.

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