K K BUILDERS vs. DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/27643/2022HC KeralaKLHC01058519202226 August 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.6 pages

AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the writ petition by directing the National Faceless Appeal Centre to consider and pass orders on the appeals filed by the petitioner for assessment years 2006-07 to 2013-14. The Court emphasized that an opportunity of hearing must be afforded to the petitioner. The National Faceless Appeal Centre was directed to decide the appeals within a period of three months from the date of receipt of a certified copy of the judgment. It was further clarified that since the petitioner had already filed detailed argument notes before the Commissioner of Income Tax (Appeals), the National Faceless Appeal Centre should also provide an opportunity for the petitioner to upload any further argument notes and other materials they wish to rely upon before the final decision is made. No specific issue was left undecided; the court provided a clear directive for the resolution of the pending appeals.

What were the facts?

The petitioner, K K Builders, represented by its Managing Partner K K Mohandas, filed a writ petition before the High Court of Kerala. The petitioner was aggrieved by the non-disposal of appeals filed before the Commissioner of Income Tax (Appeals)-III, Ernakulam, for assessment years 2006-07 to 2013-14. One appeal was filed in 2011, and the rest in 2015. Despite multiple listings and the submission of detailed argument notes, the appeals remained undecided. The petitioner had raised grievances regarding the unreasonable delay in considering their appeals. The respondent Department stated that the appeals would have been transferred to the National Faceless Appeal Centre, which is now the authority responsible for disposing of such appeals.

What were the issues?

1. Whether the High Court should entertain a writ petition seeking a direction for the disposal of pending appeals before the Commissioner of Income Tax (Appeals) when the appeals have allegedly been transferred to the National Faceless Appeal Centre? The Assessee's contention is that the appeals filed for assessment years 2006-07 to 2013-14 have been pending for an inordinate period, with one filed in 2011 and others in 2015, despite the submission of detailed argument notes. The petitioner seeks a direction for their disposal. The Revenue's contention, as stated by the learned counsel, is that the appeals have been transferred to the National Faceless Appeal Centre, which is the competent authority for their disposal. The Revenue agrees that the appeals can be directed to be disposed of within a time frame.

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 GOPINATH P. FRIDAY, THE 26TH DAY OF AUGUST 2022 / 4TH BHADRA, 1944 WP(C) NO. 27643 OF 2022 PETITIONER: K K BUILDERS, PP V 526F, PERAVOOR, KANNUR - 670 673, REPRESENTED BY ITS MANAGING PARTNER K K MOHANDAS. BY ADVS. S.ARUN RAJ C.T.SUJA RESPONDENTS: 1 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRLCE - 2, AAYAKAR BHAVAN (NORTH BLOCK), KOZHIKODE – 673 001. 2 COMMISSIONER OF INCOME TAX (APPEALS)-III KOCHI, POONIMA BUILDING, 1ST FLOOR, PANAMPILLY NAGAR, KOCHI – 682 036. 3 THE PRINCIPAL COMMISSIONER OF INCOME TAX, AAYAKAR BHAVAN, MANANCHIRA, KOZHIKODE – 673 001. 4 THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI - 682 018. 5 THE CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI – 110 011. 6 THE PRINCIPAL DIRECTOR GENERAL OF INCOME TAX (INVESTIGATION),CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI – 682 018. BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 27643 OF 2022 2

JUDGMENT The petitioner has approached this Court being aggrieved by the fact that appeals filed originally before the Commissioner of Income Tax (Appeals)-III, Ernakulam for the assessment years 2006-07 to 2013-14 have not been considered and disposed of despite the fact that one among the appeals was filed as early as in the year 2011 and the rest in the year 2015. It is submitted that the appeals were listed for consideration on several occasions and the petitioner had even filed detailed argument notes before the concerned Commissioner of Income Tax (Appeals). It is also submitted that though the petitioner raised a grievance regarding the non consideration of the appeals within a reasonable time (as is evident from Exts.P20, P21 and P22) no action has been taken to dispose of the matters.

The learned counsel appearing for the respondent Department states that the appeals would have been transferred to the National Faceless Appeal Centre, as presently, only the National Faceless Appeal Centre can dispose of the appeals filed by the petitioner. It is submitted that the appeals can be directed to be disposed of within a time frame.

WP(C) NO. 27643 OF 2022 3

Having regard to the aforesaid facts and circumstances, the writ petition will stand disposed of directing the National Faceless Appeal Centre to consider and pass orders on Exts.P9 to P16 appeals filed by the petitioner against assessment orders for the years 2006-07 to 2013-14 after affording to the petitioner an opportunity of hearing within a period of three months from the date of receipt of a certified copy of this judgment. It is made clear that since the petitioner had already filed detailed argument notes before the Commissioner of Income Tax (Appeals), the National Faceless Appeal Centre will also provide an opportunity to the petitioner to upload any argument notes and other material, which the petitioner wishes to rely upon, before the appeals are finally decided. The writ petition will stand disposed of with the aforesaid directions. GOPINATH P. JUDGE DK

WP(C) NO. 27643 OF 2022 4

Appendix — schedule of exhibits

APPENDIX OF WP(C) 27643/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE ASSESMENT ORDER DATED 23/12/2010 UNDER SECTION 143 (3) R.W.S. 148 OF THE ACT PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 1, KANNUR RANGE, KOZHIKODE FOR THE AY 2006- 07 Exhibit P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2007-08 Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2008-09 Exhibit P4 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2009-10 Exhibit P5 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2010-11 Exhibit P6 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2011-12 Exhibit P7 TRUE COPY OF THE ASSESSMENT ORDER DATED 30/03/2015 UNDER SECTION 153A(A) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE AY 2012-13 Exhibit P8 TRUE COPY OF THE ASSESSMENT ORDER DATED 29/03/2016 UNDER SECTION 143(3) OF THE ACT PASSED BY THE 1ST RESPONDENT FOR THE WP(C) NO. 27643 OF 2022 5 AY 2013-14 Exhibit P9 TRUE COPY OF THE STATUTORY FIRST APPEAL DATED 21/01/2011 FILED BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2006-07 CHALLENGING EXHIBIT P-1 ASSESSMENT ORDER. Exhibit P10 TRUE COPY OF THE STATUTORY FIRST APPEAL DATED 28/04/2015 FILED BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2007-08 CHALLENGING EXHIBIT P-2 ASSESMENT ORDER Exhibit P11 TRUE COPY OF THE STATUTORY FIRST APPEAL DATED 28/04/2015 FILED BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2008-09 CHALLENGING EXHIBIT P-ASSESSMENT ORDER Exhibit P12 TRUE COPY OF THE STATUTORY FIRST APPEAL DATED 28/04/2015 FILED BY TEH PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2009-10 CHALLENGING EXHIBIT P-4 ASSESSMENT ORDER Exhibit P13 TRUE COPY OF THE STATUTORY FIRST APPEAL FILED DATED 28/04/2015 BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2010-11 CHALLENGING EXHIBIT P-5 ASSESSMENT ORDER Exhibit P14 TRUE COPY OF THE STATUTORY FIRST APPEAL FILED DATED 28/04/2015 BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2011-12 CHALLENGING EXHIBIT P-6 ASSESSMENT ORDER Exhibit P15 TRUE COPY OF THE STATUTORY FIRST APPEAL DATED 28/04/2015 FILED BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2012-13 CHALLENGING EXHIBIT P-7 ASSESSMENT ORDER Exhibit P16 TRUE COPY OF THE STATUTORY FIRST APPEAL WP(C) NO. 27643 OF 2022 6 DATED 22/04/2016 FILED BY THE PETITIONER BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE AY 2013-14 CHALLENGING EXHIBIT P-8 ASSESSMENT ORDER Exhibit P17 TRUE COPY OF THE NOTICES DATED 11/10/2021 POSTING THE APPEALS FOR HEARING ON 04/11/2021 IN RESPECT OF THE AY'S 2006-07 TO 2013-14 Exhibit P18 TRUE COPY OF THE INSTRUCTION NO. 20/2003 DATED 23/12/2003 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES Exhibit P19 TRUE COPY OF THE INSTRUCTION F. NO. 279/MISC/53/2021-ITJ DATED 20/07/2021 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, NEW DELHI Exhibit P20 TRUE COPY OF THE GRIEVANCE LETTER DATED 20/07/2021 SENT TO THE CENTRAL BOARD OF DIRECT TAXES, NEW DELHI BY THE AUTHORISED REPRESENTATIVE OF THE PETITIONER Exhibit P21 TRUE COPY OF THE GRIEVANCE LETTER E-FILED ON 28/03/2022 FILED BY THE PETITIONER'S AUTHORISED REPRESENTATIVE IN THE WEBSITE OF CPGRAM MARKING A COPY TO THE PRINCIPAL DGIT (INVESTIGATION) Exhibit P22 TRUE COPY OF THE LETTER DATED 01/07/2022 SENT TO THE 4TH RESPONDENT BY THE PETITIONER'S AUTHORISED REPRESENTATIVE

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