SUSILKUMAR K.M vs. INCOME TAX OFFICER

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WP(C)/14313/2022HC KeralaKLHC01028854202203 June 2022Bench: HONOURABLE MR. JUSTICE GOPINATH P.4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the writ petition was premature. It agreed with the Revenue's submission that after considering the petitioner's reply, an order under Section 148A(1)(d) along with a notice under Section 148 would be issued. At that stage, the petitioner would have the opportunity to file their income tax return. The Court also noted that the petitioner had been given an opportunity to raise contentions against the Section 148A notice. Therefore, the petitioner was not entitled to any relief in the present writ petition. The Court did not decide on the merits of the time-barring issue or the sustainability of the initial notice, as it deemed the petition to be filed at an inappropriate stage. The writ petition was accordingly closed.

What were the facts?

The petitioner, Susilkumar K.M., filed a writ petition challenging a notice issued under Section 148A of the Income Tax Act, 1961, for the assessment year 2015-2016. The petitioner contended that the notice was unsustainable as no date for personal hearing was fixed, no opportunity to file a return was provided, and the material basis for the officer's conclusion of escaped income was not disclosed. The Revenue stated that the petitioner had been issued a show-cause notice under Section 148A regarding the non-filing of a return for AY 2015-2016. They further submitted that materials were provided upon request, a reply was filed, and an order under Section 148A(1)(d) along with a notice under Section 148 would be issued if proceedings were to continue, at which point the petitioner could file a return. The petitioner's counsel argued that the portal was not accepting returns and raised a point regarding the time-barring of proceedings.

What were the issues?

1. Whether the notice issued under Section 148A of the Income Tax Act, 1961, is sustainable in the absence of a fixed date for personal hearing, an opportunity to file a return, and disclosure of the material basis for the escaped income conclusion (mixed law and fact, concerning Section 148A). Assessee's Contentions: - The notice under Section 148A is unsustainable due to lack of personal hearing, no opportunity to file a return, and non-disclosure of material. (Relied on principles of natural justice and procedural fairness). - The portal is not accepting returns, hindering the filing process. - There is a valid point regarding the time-barring of assessment proceedings. Revenue's Contentions: - The notice under Section 148A was issued as a show-cause notice for non-filing of return for AY 2015-2016. - Materials were provided upon request, and the petitioner filed a reply. - An order under Section 148A(1)(d) and notice under Section 148 will be issued if proceedings continue, at which point the petitioner can file a return. - The writ petition is premature as the petitioner is not prejudiced.

Which sections of the Income-tax Act were involved?

Section 148A,Section 148

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 3RD DAY OF JUNE 2022 / 13TH JYAISHTA, 1944 WP(C) NO. 14313 OF 2022 PETITIONER: SUSILKUMAR K.M AGED 56 YEARS HOUSE NO.V/205, MARANAYIL HOUSE, EROOR NORTH, THRIPUNITHURA-682306, ERNAKULAM DISTRICT. BY ADV TOMSON T.EMMANUEL RESPONDENTS: 1 INCOME TAX OFFICER NON CORPORATE CIRCLE 1(1), CENTRAL REVENUE BUILDING, I S PRESS ROAD, COCHIN-682018. 2 PRINCIPAL COMMISSIONER OF INCOME TAX, CORPORATE RANGE 1, INCOME TAX DEPARTMENT, CENTRAL REVENUE BUILDING, I S PRESS ROAD, COCHIN-682018. OTHER PRESENT: SRI. CHRISTOPHER ABRAHAM (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.06.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P (C) No.14313/2022 -2- J U D G M E N T The petitioner has approached this court challenging Ext.P1 notice which is issued under Section 148A of the Income Tax Act (the Act) in respect of the assessment year 2015-2016. It is submitted that the proceedings are unsustainable as no date is fixed for any personal hearing, no opportunity of filing any income tax return is provided and no material on the basis of which the officer reached the conclusion that there is escaped income is provided to the petitioner. 2. The learned standing counsel for the Income Tax Department would submit that the petitioner has issued with notice Section 148A of the Act calling upon to show cause as to why assessment proceedings should not be completed against him for the year 2015-2016 in respect of which the petitioner had not filed any return of income. It is submitted that on the petitioner's request the materials upon which the notice was issued has also been provided to him and the petitioner has filed a reply. It is submitted that if the officer decides to proceed further against the petitioner he will be issued with an order under Section 148 A (1) (d) of the Act along with a notice under Section 148 of the Act and in such point of time it is open to the petitioner to file his return of income. It is submitted that the petitioner is not prejudiced in any manner and this writ petition is highly premature. 3. The learned counsel appearing for the petitioner submits that despite receiving a notice under Section 148A, the petitioner was not able to file his return of income as the portal is not accepting any return. It is submitted that the petitioner has a valid point to be raised regarding the time barring of the assessment proceedings now initiated.

W.P (C) No.14313/2022 -3- Having heard the learned counsel for the petitioner and the learned standing counsel for the respondents I am of the opinion that this writ petition is premature. As rightly pointed out by the learned standing counsel for the Department, after taking into consideration the reply filed by the petitioner an order under Section 148A (1) (d) along with a notice under Section 148A will be issued to the petitioner and at that point of time it is open to the petitioner to also file his return of income. The petitioner has also been given an opportunity to raise his contentions against notice issued under Sections 148A. In that view of the matter the petitioner is not entitled to any relief in the present writ petition. It is accordingly closed. Sd/- GOPINATH P. JUDGE AMG

W.P (C) No.14313/2022 -4- APPENDIX OF WP(C) 14313/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF NOTICE UNDER CLAUSE (B) OF SECTION 148A OF THE INCOME TAX ACT ISSUED TO PETITIONER FOR AY- 2015-16, BY 1ST RESPONDENT WITHOUT FIXING A DATE FOR PERSONAL HEARING, DATED 3.3.2022. Exhibit P2 TRUE COPY OF JUDGMENT IN WPC.28293/2021 PASSED BY DIVISION BENCH OF THE HON'BLE MADHYA PRADESH HIGH COURT IN QUASHING NOTICE ISSUED IN VIOLATION TO THE LAW PREVAILING ON 3.3.2022. Exhibit P3 TRUE COPY OF INTERIM ORDER DATED 31.3.2022 PASSED BY THIS HON'BLE COURT IN WP(C) NO.11456 OF 2022, ON SIMILAR SET OF FACTS.

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