Wp(C) v. Commercial Steel Ltd. [2021 (52) G.s.t.l.385]_ . The Case Of The Petitioner Does Not Come Within Those Parameters

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS THURSDAY, THE 7 DAY OF OCTOBER 2021 / 15TH ASWINA, 1943WP(C) NO. 21456 OF 2021 PETITIONER : JIJU JOSEPH JOSEPH,AGED 53 YEARS,KERALA. PACHAKKANAM HOUSE, PULIYANMALA P.O., IDUKKI, IDUKKI DISTRICT-685 515, BY ADVS.ANIL D. NAIRTELMA RAJUSANGEETH JOSEPH JACOBCHRISTINA ANNA PAULARAVIND SREEKUMAR RESPONDENT : INCOME TAX OFFICER,NEW DELHI-110 003. NATIONAL FACELESS ASSESSMENT CENTRE, BY SRI. JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON07.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: BECHU KURIAN THOMAS, J. =-=-=-=-=-=-=-=-=-=-=-=-=-= W.P.(C).No.21456 of 2021 =-=-=-=-=-=-=-=-=-=-=-=-=-= Dated this the 7[th] day of October, 2021 JUDGMENT Petitioner, an assessee under the Income Tax Act (forshort, 'the Act), challenges an order issued under Section 270A ofthe Act imposing penalty of Rs.42,24,835/- being 50% of the tax forthe under reported income relating to the assessment year 2018-19. 2. Though statutory remedies are available in the form ofappeal against Ext.P7 order of penalty, petitioner has preferred thiswrit petition on the ground that the penalty imposed upon thepetitioner is intrinsically connected with the assessment order andthe quantum of tax imposed under the assessment order. Accordingto the petitioner, since the order of assessment issued against thepetitioner for the year 2018-19 is pending consideration in appeal,imposition of penalty on an assessment which has not yet attainedfinality, is without authority. 3. I have heard the arguments of Adv.Anil D.Nair, the learned counsel for the petitioner as well as Adv.Jose Joseph, thelearned Standing Counsel for the Income Tax Department. 4. On a consideration of the submissions made across thebar, it is understood that the order of assessment was passed on26.03.2021 and the quantum of income for the relevant assessmentyear has already been assessed. Once the said assessment iscompleted, there is no prohibition in initiating proceedings for penaltyunder Section 274 read with Section 270A of the Act. Merelybecause an appeal against the said assessment order is pendingconsideration, the same is not a reason to defer initiation ofproceedings for penalty under Section 270A of the Act. If thecontention of the petitioner is accepted, the same will unnecessarilydelay the proceeding under Section 270A of the Act which is notcontemplated under the scheme of the statute. 5. In matters of taxation, this Court would be loath tointerfere especially when statutory forums are available to redressthe grievance of the assessees. The parameters when interferencecan be made by this Court under Article 226 has been restated evenrecently in the decision in Assistant Commissioner of State Taxv. Commercial Steel Ltd. [2021 (52) G.S.T.L.385]. The case ofthe petitioner does not come within those parameters. 6. If the petitioner is aggrieved by the order of penaltyimposed, statutory remedies are available. The reasons put forth by the petitioner to overcome the statutory remedy of appeal is nottenable. Hence, the writ petition does not merit consideration and isdismissed leaving open the liberty of the petitioner to pursue thestatutory remedies available. Sd/- BECHU KURIAN THOMAS, JUDGE RKM APPENDIX OF WP(C) 21456/2021 PETITIONER'S EXHIBITS: Exhibit P1TRUE COPY OF THE ASSESSMENT ORDER DATED 26.3.2021 ISSUED BY THE RESPONDENT. Exhibit P2TRUE COPY OF THE FORM.35 FILED BY THE RESPONDENT. 6. If the petitioner is aggrieved by the order of penaltyimposed, statutory remedies are available. The reasons put forth by the petitioner to overcome the statutory remedy of appeal is nottenable. Hence, the writ petition does not merit consideration and isdismissed leaving open the liberty of the petitioner to pursue thestatutory remedies available. Sd/- BECHU KURIAN THOMAS, JUDGE RKM APPENDIX OF WP(C) 21456/2021 PETITIONER'S EXHIBITS: Exhibit P1TRUE COPY OF THE ASSESSMENT ORDER DATED 26.3.2021 ISSUED BY THE RESPONDENT. Exhibit P2TRUE COPY OF THE FORM.35 FILED BY THE RESPONDENT. Exhibit P3TRUE COPY OF THE NOTICE DATED 26.3.2021 ISSUED BY THE RESPONDENT.Exhibit P4TRUE COPY OF THE REPLY DATED 12.4.2021 TO THE NOTICE OF THE RESPONDENT.Exhibit P5TRUE COPY OF SHOW CAUSE NOTICE DATED 25.6.2021 ISSUED BY THE RESPONDENT.Exhibit P6TRUE COPY OF THE ACKNOWLEDGEMENT FOR THE REPLY.Exhibit P7TRUE COPY OF ORDER DATED 25.9.2021 ISSUED BY THE RESPONDENT.