ASWIN ASSOCIATES vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP(C)/16412/2021HC KeralaKLHC01043560202105 October 2021Author: HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala directed the concerned Appellate Authority (amongst respondents 2 and 3) to take up the stay petition and the delay condonation petition filed by the petitioner. These petitions are to be considered in accordance with the law within a period of three months from the date of receipt of a copy of the judgment. Furthermore, the Court ordered that all coercive proceedings pursuant to the notice of demand (Ext.P2) shall be kept in abeyance until the stay petition and delay petition are decided. The Court did not decide on the merits of the e-assessment itself but focused on the procedural aspects of the appeal and the pending applications.

What were the facts?

The petitioner, Aswin Associates, was subjected to an e-assessment for the assessment year 2018-19. The petitioner alleges that they were neither heard nor were the documents they produced considered during the assessment process. Consequently, the petitioner filed an appeal before the 2nd respondent (Commissioner of Income Tax (Appeals)). This appeal was subsequently uploaded to the Income Tax Department's portal for consideration by the 3rd respondent (Additional R3, Principal Chief Commissioner of Income Tax, National Faceless Appeal Centre). A delay of 116 days occurred in filing the appeal, for which a delay condonation petition was submitted. A stay petition was also filed. The writ petition was filed challenging the aforementioned actions and seeking relief.

What were the issues?

1. Whether the petitioner was denied a proper hearing and consideration of documents during the e-assessment for AY 2018-19, thus violating principles of natural justice? (Question of mixed law and fact, concerning the procedure under the Income Tax Act, 1961). Assessee's Contention: The petitioner argued that the e-assessment was conducted without affording them an opportunity to be heard and without considering the documents submitted, leading to a violation of natural justice principles. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the merits of the petitioner's claims about the e-assessment process. The revenue's role in the proceedings was primarily in responding to the writ petition and the subsequent directions.

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 BECHU KURIAN THOMAS TUESDAY, THE 5TH DAY OF OCTOBER 2021 / 13TH ASWINA, 1943 WP(C) NO. 16412 OF 2021 PETITIONER : ASWIN ASSOCIATES DOOR NO. XIV/616, STATUE ROAD, KARUVELIPADY, KOCHI - 682005, ERNAKULAM DISTRICT, REPRESENTED BY MR. G.BALAKRISHNA PILLAI - MANAGING PARTNER. BY ADV JOSEPH JERARD SAMSON RODRIGUES RESPONDENTS : 1 THE DEPUTY COMMISSIONER OF INCOME TAX, INCOME TAX DEPARTMENT, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI - 110003. 2 THE COMMISSIONER OF INCOME TAX (APPEALS) INCOME TAX DEPARTMENT, ERNAKULAM - 682036, ERNAKULAM DISTRICT. * 3 ADDITIONAL R3 IMPLEADED THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, NATIONAL FACELESS APPEAL CENTRE, NEW DELHI – 110 001, REPRESENTED BY THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX * ADDL.R3 IS IMPLEADED AS PER THE ORDER DATED 05.10.2021 IN I.A.NO.1/2021 IN W.P.(C) NO.16412 OF 2021 BY ADVS. SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 16412 OF 2021 2 BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C).No.16412 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 5th day of October, 2021

JUDGMENT Petitioner was subjected to an e-assessment for the assessment year 2018-19. Petitioner complains that neither was he heard nor were documents produced by him considered.

Therefore petitioner preferred Ext.P3 appeal before the 2nd respondent. Thereafter the appeal was uploaded in the portal of the Income Tax Department for consideration by the 3rd respondent as is evident from Ext.P6. In filing the appeal, a delay of 116 days had occurred for which, a delay condonation petition is preferred as Ext.P5. Petitioner has also preferred Ext.P4 stay petition.

2.

Having regard to the circumstances of the case, there will be a direction to the concerned Appellate Authority amongst respondents 2 and 3 to take up the stay petition and the delay petition filed by the petitioner and consider the same

WP(C) NO. 16412 OF 2021 3 in accordance with law within a period of three months from the date of receipt of a copy of this judgment. Till then, all coercive proceedings pursuant to Ext.P2 notice of demand shall be kept in abeyance. The writ petition is disposed of as above. BECHU KURIAN THOMAS, JUDGE RKM

WP(C) NO. 16412 OF 2021 4

Appendix — schedule of exhibits
APPENDIX OF WP(C) 16412/2021 PETITIONER'S EXHIBITS : Exhibit P1 TRUE COPY OF THE E-ASSESSMENT ORDER N O. DIN.ITBA/AST/143(3)/2020-21/1031416917(1), DATED 11.03.2021, ISSUED BY THE FIRST RESPONDENT, DEPUTY COMMISSIONER OF INCOME TAX, NATIONAL E-ASSESSMENT CENTRE, NEW DELHI. Exhibit P2 TRUE COPY OF THE NOTICE OF DEMAND NO.ITBA/AST/S/156/2020-21/1031416956(1), DATED 11.03.2021 ISSUED BY THE FIRST RESPONDENT. Exhibit P3 TRUE COPY OF THE MEMORANDUM OF APPEAL IN FORM NO.35 DATED 09.08.2021 AND STATEMENT OF FACTS & GROUNDS OF APPEAL FILED BEFORE THE SECOND RESPONDENT, COMMISSIONER OF INCOME TAX (APPEALS), ERNAKULAM. Exhibit P4 TRUE COPY OF THE STAY PETITION FILED BEFORE THE SECOND RESPONDENT COMMISSIONER OF INCOME TAX (APPEALS), ERNAKULAM. Exhibit P5 TRUE COPY OF THE PETITION FOR CONDONATION OF DELAY IN FILING APPEAL BEFORE THE SECOND RESPONDENT COMMISSIONER OF INCOME TAX (APPEALS), ERNAKULAM. Exhibit P6 TRUE COPY OF THE ACKNOWLEDGEMENT RECEIPT NO.531890940180921 DATED 18TH SEPTEMBER, 2021 OF THE MEMORANDUM OF APPEAL IN FORM NO.35, STATEMENT OF FACTS AND GROUNDS OF APPEAL UPLOADED IN THE INCOME TAX DEPARTMENT. Exhibit P7 TRUE COPY OF THE SCREEN SHOT DATED 18 SEPTEMBER 2021 OF THE INCOME TAX DEPARTMENT.

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