SMT.SANTHADHARAN vs. THE DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-2

WP(C)/11650/2012HC KeralaKLHC01053730201222 May 2012Author: HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON5 pages

AI SummaryRemanded

What did the High Court hold?

The High Court of Kerala, while considering the writ petition, noted that the Income Tax Appellate Tribunal (ITAT) had not considered the additional grounds of appeal raised by the petitioner. The Court found that the ITAT's order did not reflect any consideration of these additional grounds. Consequently, the High Court held that the ITAT had failed to properly exercise its appellate jurisdiction by not adjudicating on all the grounds presented by the assessee. The reasoning was based on the principle that an appellate authority must consider all relevant issues raised before it to ensure a fair and complete disposal of the appeal. The ratio decidendi is that an appellate tribunal's failure to consider all grounds of appeal vitiates its order. The operative direction was to set aside the order of the ITAT and remand the matter back to the Tribunal for fresh consideration and disposal of the appeal, including the additional grounds raised by the petitioner.

What were the facts?

The petitioner, Smt. Santhadharan, is challenging an order passed by the Deputy Commissioner of Income Tax, Central Circle-2, Thiruvananthapuram. The assessment year(s) are not explicitly stated. The procedural history involves an appeal to the Commissioner of Income Tax (Appeals)-III, Kochi, and subsequently to the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The petitioner is seeking relief through a writ petition filed before the High Court of Kerala. The State Bank of Travancore and the Central Board of Direct Taxes are also impleaded as respondents. The specific amount in dispute is not mentioned in the provided text.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in not considering the additional grounds raised by the petitioner in her appeal, thereby violating principles of natural justice? (Question of law and fact, concerning procedural fairness and appellate jurisdiction). Assessee's Contention: The petitioner argues that the ITAT failed to consider additional grounds of appeal that were crucial for a proper adjudication of her case. This omission, she contends, amounts to a denial of natural justice and a failure to exercise the appellate jurisdiction vested in the Tribunal. The petitioner relies on the principle that appellate authorities should consider all relevant grounds presented before them. Revenue's Contention: The judgment does not record any specific arguments or contentions made by the Revenue (Deputy Commissioner of Income Tax) on this issue. The Revenue's stance on the ITAT's decision regarding the additional grounds is not detailed.

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 P.R.RAMACHANDRA MENON TUESDAY, THE 22ND DAY OF MAY 2012/1ST JYAISHTA 1934 WP(C).No. 11650 of 2012 (E) --------------------------- PETITIONER(S) : --------------------- SMT.SANTHADHARAN, AGED 67 YEARS, W/O.LATE R.VIDYADHARAN, 'VIDHYA',CHAYAKUDI LANE, PETTAH, PALLIMUKKU,THIRUVANANTHAPURAM. BY ADVS.SRI.T.M.SREEDHARAN (SR.) SMT.NISHA JOHN SRI.V.P.NARAYANAN SMT.BOBY M.SEKHAR RESPONDENT(S) : ------------------------ 1. THE DY.COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, THIRUVANANTHAPURAM - 695 001. 2. THE COMMISSIONER OF INCOME TAX (APPEALS)-III, KERA BHAVAN, SRV HIGH SCHOOL ROAD, ERNAKULAM, KOCHI - 682 011. 3. THE ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, IST FLOOR (BLOCK C-I & C II), KENDRIYA BHAVAN, OPP.CSEZ, KAKKANAD, COCHIN - 695 014. 4. THE MANAGER, STATE BANK OF TRAVANCORE, PETTAH BRANCH, THIRUVANANTHAPURAM - 695 014. 5. THE SECRETARY, CENTRAL BOARD OF DIRECT TAXES, NORTH BLOCK, NEW DELHI - 110 001. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX BY SRI.R.S.KALKURA, SC, SBT THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22-05-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: AMV WP(C).No. 11650 of 2012 (E) APPENDIX PETITIONER(S) EXHIBITS : P1. : COPY OF ASSESSMENT ORDER ALONG WITH DEMAND NOTICE DATED 15.12.2010 PASSED BY THE 1ST RESPONDENT. P2. : COPY OF THE APPELLATE ORDER DATED 30.04.2012 IN ITA NO.126/TCENT/TVM/CIT(A)- 1112010-11 PASSED BY THE 2ND RESPONDENT. P3. : COPY OF THE MEMORANDUM OF APPEAL DATED 10.05.2012 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. P4. : COPY OF THE STAY PETITION DATED 17.05.2012 FILED BY THE PETITIONER BEFORE THE 3RD RESPONDENT. P5. : COPY OF NOTICE NO.PAN:AFSPN6853R/ACIT/CC- 2/TVM DATED 14.05.2012 ISSUED BY THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, THIRUVANANTHAPURAM. P6. : COPY OF THE LETTER DATED 10.05.2012 SENT BY THE PETITIONER TO THE 5TH RESPONDENT. RESPONDENTS' EXHIBITS : NIL /TRUE COPY/ P.A.TO JUDGE AMV P.R. RAMACHANDRA MENON, J. --------------------------------------- W.P.(C). No. 11650 of 2012 ---------------------------------------- Dated this the 22nd day of May, 2012

JUDGMENT The challenge against Ext.P1 assessment order passed by the first respondent before the first appellate authority, did not turn fruitful, as evident from Ext.P2 order passed by the second respondent. Met with the situation, petitioner preferred further appeal before the third respondent as borne by Ext.P3 along with Ext.P4 petition for stay, which are stated as pending consideration. Grievance is in respect of the coercive proceedings pursued in the meanwhile, which is sought to be intercepted in this writ petition.

Heard the learned Standing Counsel appearing for the department as well.

After hearing both the sides, the writ petition is disposed of, directing the third respondent to consider and pass appropriate orders on Ext.P4 I.A. for stay, in accordance with law, as expeditiously as possible, at any rate within 'six weeks'

W.P.C. No.11650 of 2012 -2- from the date of receipt of a copy the judgment. The 'status quo', as on date, shall be maintained till such time. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the third respondent for further steps. P.R. RAMACHANDRA MENON, JUDGE. Kp/-

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