T.N.AUTO AND GENERAL ENGINEERING CO. PVT. LTD vs. THE ASSISTANT COMMISSIONER OF INCOME TAX

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WP(C)/3631/2020HC KeralaKLHC01010202202014 February 2020Author: HONOURABLE MR. JUSTICE AMIT RAWAL5 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court of Kerala disposed of the writ petition. The court noted the communication from the Commissioner of Income Tax (Appeals) indicating that the petitioner's three appeals, including those for AY 2007-2008 and 2008-2009, had been reposted for hearing on February 19, 2020. The petitioner's counsel acknowledged this and stated that with the hearing now scheduled, there was no necessity for the High Court to intervene in the matter of assessment years or notices under Section 226(3). The court granted the petitioner liberty to raise all their pleadings in support of their appeal and interim application. Therefore, the court did not decide on the merits of the appeals or the procedural issues raised, but rather disposed of the petition based on the scheduled hearing.

What were the facts?

The petitioner, T.N. Auto and General Engineering Co. Pvt. Ltd., filed a writ petition before the High Court of Kerala seeking intervention regarding the non-hearing of their pending appeals for Assessment Years (AY) 2007-2008 and 2008-2009. The Income Tax Department's standing counsel presented a communication from the Commissioner of Income Tax (Appeals), Thrissur. This communication detailed that three appeals (ITA Nos. 79/15-16 for AY 2008-09, 80/15-16 for AY 2007-08, and 81/15-16 for AY 2006-07) were initially posted for hearing on July 17, 2017, but no one attended. A subsequent hearing on August 1, 2017, was attended by a Chartered Accountant who was asked to file proper grounds and submissions, but no such documents were found in the records. The appeals were then reposted for hearing on February 19, 2020.

What were the issues?

1. Whether the petitioner's appeals for AY 2007-2008 and 2008-2009 have been unduly delayed in being heard by the Commissioner of Income Tax (Appeals)? (Mixed question of law and fact, concerning principles of natural justice and procedural fairness). Assessee's Contention: The petitioner's counsel submitted that they only became aware of the February 19, 2020, hearing date on the previous day. Given that a hearing has now been scheduled, the petitioner stated there was no need for the High Court to interfere with the validity of the assessment years or the notice issued under Section 226(3) of the Income Tax Act. They asserted liberty to raise all pleadings in support of their appeal and interim application. Revenue's Contention: The judgment does not record any specific contentions from the revenue regarding the delay or the merits of the appeals. The communication from the Commissioner of Income Tax (Appeals) outlines the procedural history and the pending action.

Which sections of the Income-tax Act were involved?

Section 226(3)

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 AMIT RAWAL FRIDAY, THE 14TH DAY OF FEBRUARY 2020 / 25TH MAGHA, 1941 WP(C).No.3631 OF 2020(D) PETITIONER: T.N.AUTO AND GENERAL ENGINEERING CO. PVT. LTD NEAR RAILWAY STATION ROAD, WADAKKANCHERRY, THRISSUR- 680623 REP BY ITS MANAGING DIRECTOR K.P.YUSUF BY ADVS. SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN RESPONDENTS: 1 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(1), AAYAKAR BHAVAN, SAKTHAN THAMPURAM NAGAR, THRISSUR-680001 2 THE COMMISSIONER OF INCOME TAX (APPEALS) AAYAKAR BHAVAN, SAKTHAN THAMPURAM NAGAR, THRISSUR- 680001 3 THE JOINT COMMISSIONER OF INCOME TAX (OSD) DCIT CIRLE 1(1) AND TPS, AAYAKAR BHAVAN, SAKTHAN THAMPURAM NAGAR, THRISSUR-680001 4 THE MANAGER, SOUTH INDIAN BANK LTD, SEETHARAM MILL ROAD, PUNKUNNAM, THRISSUR-680002 5 THE MANAGER AXIS BANK, CITY CENTRE, ROUND WEST, THRISSU-680001 6 THE MANAGER THRISSUR DISTRICT CO-OPERATIVE BANK LTD, ATHANI.P.O, THRISSUR-680024 7 THE MANAGER STATE BANK OF INDIA, P.B. NO.23, MAIN ROAD, WADACKANCHERY-680582 R5 BY ADV. SRI.SAJU N.A. R5 BY ADV. SMT.G.LEKHA R5 BY ADV. SMT.P.J.FLONY Wpc 3631/2020 2 R5 BY ADV. SMT.S.AMBILY R5 BY ADV. SMT.UMA.G.KRISHNAN SMT M.M.JASMINE,GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Wpc 3631/2020 3

JUDGMENT

This court, on the last date of hearing, called upon the standing counsel for the Income Tax Department to apprise regarding the non hearing of the pending two appeals for the assessment years 2007-2008 and 2008-2009 filed by the petitioner. Standing counsel has placed before this court a communication dated 12th February, 2020 received from the office of the Commissioner of Income Tax (Appeals), Thrissur stating as under:- “ Sub: Appeal filed in the case of T.N.Auto & Engineering Company Pvt.Ltd, (AAACT3423D, 11/256A Wadakkanchery, Thrissur – 680623 for the ITA No.79/15-16 for A.Y.2008-09, ITA No.80/15-16 for A.Y 2007-08 & ITA No.81/15-16 for A.Y.2006-07 – instructions – Reg. Please refer to the above subject. The above referred 3 appeals were firstly posted for hearing 17-07-2017. But nobody has attended for hearing. Again, these cases were posted on 01-08-2017. IN response to the posting notices,

Shri.S.Sivaramakrishnan,

Chartered Accountant, attended hearing. He was requested to file proper grounds of appeal and copies of all orders and detailed submissions regarding facts of the cases. But as per the records, no submissions found. Action pending on this stage. I joined in this charge on 9th January, 2020/. The above three appeals are reposted for hearing on 19-02-2020 and the same will be considered for disposal at the earliest”. The aforementioned communication is also enclosed with CD.

2.

Counsel for the petitioner submits that only yesterday, the petitioner came to know about the hearing of appeal on 19.02.2020. Since the hearing has been given, there is no need for any interference by this court to go into the validity and illegality of the assessment years and notice issued under Section226(3) of the Income Tax Act and the petitioner shall be at liberty to raise all the pleadings in support of appeal as well as interim application. Writ petition is disposed of as above. AMIT RAWAL, JUDGE Lgk

Appendix — schedule of exhibits
APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.03.2015 PASSED BY THE 1ST RESPONDENT FOR THE AY 2007-08 EXHIBIT P2 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.03.2015 PASSED BY THE 1ST RESPONDENT FOR THE AY 2008-09 EXHIBIT P3 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 28.4.2015 FOR THE AY-2007-08 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P4 THE TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 28.4.2015 FOR THE AY-2008-09 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT EXHIBIT P5 TRUE COPY OF THE STAY PETITION DATED 28.04.2015 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2007-08 EXHIBIT P6 TRUE COPY OF THE STAY PETITION DATED 28.04.2015 FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT FOR AY-2008-09 EXHIBIT P7 TRUE COPY OF THE STATEMENT SHOWING THE AMOUNT REMITTED BY THE PETITIONER TOWARDS DEMAND EXHIBIT P8 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RESPONDENT TO 4TH RESPONDENT U/S 226(3) EXHIBIT P9 TRUE COPY OF THE NOTICE ISSUED BY THE 3RD RESPONDENT TO 5TH RESPONDENT U/S 226(3)

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