CONTINENTAL HOSPITALITY (INDIA) PRIVATE LIMITED vs. THE COMMISSIONER OF INCOME TAX

WP(C)/16039/2022HC KeralaKLHC01032156202224 August 2022Author: HONOURABLE MR. JUSTICE GOPINATH P.4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, quashed the assessment order (Ext.P8) issued by the National Faceless Assessment Centre. The Court found merit in the petitioner's submission that the assessment was completed without considering their filed objections and supporting documents. The Court reasoned that this failure to consider the objections amounted to a procedural irregularity and a violation of the principles of natural justice. The Court directed the National Faceless Assessment Centre to complete the assessment proceedings afresh. This fresh assessment must afford the petitioner an opportunity of hearing and must take into account the objections filed by the petitioner, as evidenced by Exts.P6 and P7. The Court stipulated that this exercise should be completed within three months from the date of receipt of a certified copy of the judgment. No specific issue was left undecided.

What were the facts?

The petitioner, Continental Hospitality (India) Private Limited, filed a writ petition before the High Court of Kerala challenging an assessment order (Ext.P8) issued by the National Faceless Assessment Centre. The petitioner contended that they had filed objections (Ext.P6) along with supporting documents, which were uploaded and evident from Ext.P7. However, the Faceless Assessment Centre proceeded to complete the assessment on the premise that no objections had been filed by the petitioner. The Revenue was represented by its Standing Counsel.

What were the issues?

1. Whether the assessment order passed by the National Faceless Assessment Centre is vitiated by a procedural irregularity, specifically the failure to consider objections filed by the assessee, thereby violating principles of natural justice? (Question of mixed law and fact, concerning the assessment process under the Income Tax Act, 1961). Assessee's Contention: The assessee argued that they had duly filed objections and uploaded supporting documents, as evidenced by Exts.P6 and P7. The assessment order was erroneous as it proceeded on the basis that no objections were filed, ignoring the submitted material. Revenue's Contention: The Revenue, through its Standing Counsel, was heard. No specific arguments are recorded in the judgment for the Revenue.

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. WEDNESDAY, THE 24TH DAY OF AUGUST 2022 / 2ND BHADRA, 1944 WP(C) NO. 16039 OF 2022 PETITIONER: CONTINENTAL HOSPITALITY (INDIA) PRIVATE LIMITED G-272, 11TH CROSS, PANAMPILLY NAGAR ERNAKULAM, KOCHI-682 036. REP.BY ITS DIRECTOR, MATHEW JOSEPH, AGED 49, S/O P I JOSEPH, NO.3B, IVORY HEIGHTS, 14TH CROSS, PANAMPILLY NAGAR, ERNAKULAM – 682 036. BY ADVS. N.ABHILASH PRAVEEN K. JOY E.S.SANEEJ M.P.UNNIKRISHNAN M.K.SAMYUKTHA DEEPU RAJAGOPAL SANDRA S.KUMAR RESPONDENTS: 1 THE COMMISSIONER OF INCOME TAX, KOCHI, 6TH FLOOR, KANDAMKULATHY TOWER, M G ROAD, KARIKKAMURI, SHENOYS, KOCHI – 682 011. 2 INCOME TAX OFFICER, CORPORATE WARD 1(1), KOCHI, CENTRAL REVENUE BUILDING, IS PRESS ROAD, KOCHI – 682 018. 3 INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE, 6TH FLOOR, MAYUR BHAWAN, NEW DELHI – 110 001. SRI. JOSE JOSEPH (SC) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.08.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16039 OF 2022 2

JUDGMENT The petitioner has approached this Court being aggrieved by Ext.P8 order of assessment issued by the Faceless Assessment Centre. It is the case of the petitioner that the petitioner had filed his objections (Ext.P6) and had uploaded the same and which is evident from Ext.P7 along with supporting documents. It is submitted that though objections had been filed along with documents as above, the Faceless Assessment Centre has completed the assessment against the petitioner on the basis that no objection had been filed by the petitioner.

Heard the learned Standing Counsel for the Department also.

Having regard to the facts and circumstances of the case and taking into consideration similar directions issued in other cases by this Court, Ext.P8 order of assessment is quashed. The National Faceless Assessment Centre shall complete the assessment proceedings against the petitioner afresh after affording to the petitioner an opportunity of hearing and after taking note of the objections filed by the WP(C) NO. 16039 OF 2022 3 petitioner as is evident from Exts.P6 and P7. This shall be done within a period of three months from the date of receipt of a certified copy of this judgment. The writ petition will stand disposed of as above. GOPINATH P. JUDGE DK

WP(C) NO. 16039 OF 2022 4

Appendix — schedule of exhibits

APPENDIX OF WP(C) 16039/2022 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE DATED 01.12.2021 OF THE 3RD RESPONDENT Exhibit P2 TRUE COPY OF THE NOTICE DATED 18.01.2022 OF THE 3RD RESPONDENT Exhibit P3 TRUE COPY OF THE REPLY DATED 27.01.2022 TO THE 3RD RESPONDENT Exhibit P4 TRUE COPY OF THE NOTICE DATED 11.02.2022 OF THE 3RD RESPONDENT Exhibit P5 TRUE COPY OF THE SHOW-CAUSE NOTICE DATED 20.03.2022 ISSUED BY NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI Exhibit P6 TRUE COPY OF THE REPLY TO SHOW CAUSE NOTICE DATED 23.03.2022 ISSUED TO NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI Exhibit P7 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED 23.03.2022 ISSUED BY NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI Exhibit P8 TRUE COPY OF THE RELEVANT PORTION OF THE ASSESSMENT ORDER DATED 29.03.2022 ISSUED BY NATIONAL FACELESS ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, NEW DELHI

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