Wp(C)/11496/2024 Of Jagadeesan Chellappan Achary v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGHTUESDAY, THE 26 DAY OF MARCH 2024 / 6TH CHAITHRA, 1946 WP(C) NO. 11496 OF 2024 PETITIONER: JAGADEESAN CHELLAPPAN ACHARYAGED 68 YEARS, S/O. CHELLAPPAN ACHARY, RESIDING AT 'GOURI KRIPA', T. C. 52/1118-6, ANUGRAHA NAGAR, POOZHIKUNNU, ESTATE P. O., THIRUVANANTHAPURAM, PIN – 695019. BY ADVS. SRI. SREEHARI INDUKALADHARAN SRI. SETHU NANDAKUMAR SMT. D. SMITHA SRI. JAYASANKAR K. RESPONDENTS: 1INCOME TAX OFFICERMOFFICE OF THE INCOME TAX , AAYAKAR BHAVAN, 1ST FLOOR, KOWDIAR P. O., THIRUVANANTHAPURAM, PIN – 695003.OFFICE OF THE INCOME TAX , AAYAKAR BHAVAN, 1ST FLOOR, KOWDIAR P. O., THIRUVANANTHAPURAM, PIN – 695003. 2THE ASSISTANT COMMISSIONER OF INCOME TAX, OFFICE OF THE INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN – 110001.OFFICE OF THE INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, PIN – 110001. 3ASSISTANT DIRECTOR OF INCOME TAX, OFFICE OF THE INCOME TAX DEPARTMENT, CENTRAL PROCESSING CENTRE, BENGALURU, PIN – 560500.OFFICE OF THE INCOME TAX DEPARTMENT, CENTRAL PROCESSING CENTRE, BENGALURU, PIN – 560500. 4FEDERAL BANK LTD.,REPRESENTED BY ITS MANAGING DIRECTOR CUM CEO, HEAD OFFICE, ALUVA BANK JUNCTION, METRO HEIGHTS, BYPASS JUNCTION, ALUVA, ERNAKULAM, PIN – 683101. BY ADVS. SRI. P. G. JAYASHANKAR - SC SRI. KEERTHIVAS GIRI - SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON26.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No. 11496 of 2024 ------------------------- Dated this the 26[th] day of March, 2024 JUDGMENT 1. The petitioner, a senior citizen is an assessee under the provisions of the Income Tax Act, 1961. Petitioner was served with a notice dated30.03.2021 by the 1[st] respondent under Section 148 of the said Actrequiring him to file tax return for the assessment year 2013-14 as the 1[st]respondent has been of the opinion that the petitioner’s income hadescaped assessment. 2.Petitioner is a practicing Advocate. The petitioner was issuedanother notice under Sub-section (1) of Section 142 of the Act stating thattotal interest from income of the petitioner was Rs. 75,73,122/- and totalprofessional income of the petitioner was Rs. 4,000/- during the financialyear 2012-13. The petitioner was directed to produce books of accounts,details of source of income, bank account statements and income taxreturns for the assessment year 2013-14 corresponding to the financialyear 2012-13. 3.The learned Counsel for the petitioner submits that the amount ofRs. 75,73,122/- as interest income of the petitioner was a mistake on thepart of the Bank and the Bank had issued a letter and the 26 AS Form hasbeen rectified by the Bank. The Bank has issued a letter and the 26 AS 2.Petitioner is a practicing Advocate. The petitioner was issuedanother notice under Sub-section (1) of Section 142 of the Act stating thattotal interest from income of the petitioner was Rs. 75,73,122/- and totalprofessional income of the petitioner was Rs. 4,000/- during the financialyear 2012-13. The petitioner was directed to produce books of accounts,details of source of income, bank account statements and income taxreturns for the assessment year 2013-14 corresponding to the financialyear 2012-13. 3.The learned Counsel for the petitioner submits that the amount ofRs. 75,73,122/- as interest income of the petitioner was a mistake on thepart of the Bank and the Bank had issued a letter and the 26 AS Form hasbeen rectified by the Bank. The Bank has issued a letter and the 26 AS Form has been rectified by the Bank. The fact was also communicatedvide the letter dated 18.04.2022 in Exhibit P-9. Despite the aforesaidcommunication, the assessment order was completed in Exhibit P-2,against which the petitioner has filed the appeal. The petitioner’srectification application has been rejected on the ground that since thepetitioner has filed the appeal, the rectification application is notmaintainable. Considering the fact that the Bank has already modifiedForm 26 AS and letter has been issued in Exhibit P-9 which would suggestthat no TDS was deposited by the Bank and no interest income of Rs.75,73,122/- accrued to the petitioner, it would be appropriate to disposeof this writ petition with direction to the Faceless Appellate Centre toconsider and dispose of Exhibit P-11 appeal of the petitionerexpeditiously, preferably within period of two months. While consideringthe appeal, the appellate authority should take into account the modifiedForm 26 AS in Exhibit P-10. Till the disposal of the appeal, it is providedthat no coercive measures to be taken against the petitioner for enforcingthe demand of tax made. With the aforesaid directions, the present writ petition is herebydisposed of. Sd/- DINESH KUMAR SINGHJUDGE APPENDIX OF WP(C) 11496/2024 PETITIONER EXHIBITS EXHIBIT P1A TRUE COPY OF THE NOTICE ISSUED UNDER SECTION148 OF INCOME TAX ACT TO THE PETITIONER DATED30/03/2021148 OF INCOME TAX ACT TO THE PETITIONER DATED30/03/2021 EXHIBIT P2A TRUE COPY OF THE NOTICE NO.ITBA/AST/F/142(1)2021-22/1036857929 (1) ISSUED TO THE PETITIONERDATED 12/11/20212021-22/1036857929 (1) ISSUED TO THE PETITIONERDATED 12/11/2021 EXHIBIT P3A TRUE COPY OF THE REPRESENTATION SEND BY THEPETITION TO THE 1ST RESPONDENT THROUGH EMAILCOMMUNICATION DATED 09/12/2021PETITION TO THE 1ST RESPONDENT THROUGH EMAILCOMMUNICATION DATED 09/12/2021 EXHIBIT P4A TRUE COPY OF THE SHOW CAUSE NOTICE UNDERSECTION 144 DATED 25/03/2022SECTION 144 DATED 25/03/2022 EXHIBIT P5A TRUE COPY OF THE DEMAND NOTICE DATED30/03/202230/03/2022 EXHIBIT P6TRUE COPY OF THE PENALTY DROPPING ORDER ISSUEDBY THE 1ST RESPONDENT DATED 05.09.2022BY THE 1ST RESPONDENT DATED 05.09.2022 EXHIBIT P6(A) TRUE COPY OF THE 2ND PENALTY DROPPING ORDERISSUED BY THE 1ST RESPONDENT DATED 05.09.2022ISSUED BY THE 1ST RESPONDENT DATED 05.09.2022 EXHIBIT P7A TRUE COPY OF THE DOWNLOADED FORM 26 AS TDSTRACES ISSUED BY THE I T DEPARTMENTTRACES ISSUED BY THE I T DEPARTMENT EXHIBIT P8A TRUE COPY OF THE COMPLAINT FILED BY THEPETITIONER BEFORE THE 3RD RESPONDENT DATED04/04/2022PETITIONER BEFORE THE 3RD RESPONDENT DATED04/04/2022 EXHIBIT P8(A) A TRUE COPY OF THE COMPLAINT DATED 06/04/2022 EXHIBIT P9A TRUE COPY OF EMAIL COMMUNICATION DATED18/04/202218/04/2022 EXHIBIT P10A TRUE COPY OF THE UPDATED 26AS TDS IN RESPECTOF THE PETITIONER, DOWNLOADED FROM THE SITE OFTHE IT DEPARTMENT SHOWING ZERO BALANCESOF THE PETITIONER, DOWNLOADED FROM THE SITE OFTHE IT DEPARTMENT SHOWING ZERO BALANCES EXHIBIT P11A TRUE COPY OF THE APPEAL MEMORANDUM FILED BYTHE PETITIONER DATED 23.04.2022THE PETITIONER DATED 23.04.2022 EXHIBIT P7A TRUE COPY OF THE DOWNLOADED FORM 26 AS TDSTRACES ISSUED BY THE I T DEPARTMENTTRACES ISSUED BY THE I T DEPARTMENT EXHIBIT P8A TRUE COPY OF THE COMPLAINT FILED BY THEPETITIONER BEFORE THE 3RD RESPONDENT DATED04/04/2022PETITIONER BEFORE THE 3RD RESPONDENT DATED04/04/2022 EXHIBIT P8(A) A TRUE COPY OF THE COMPLAINT DATED 06/04/2022 EXHIBIT P9A TRUE COPY OF EMAIL COMMUNICATION DATED18/04/202218/04/2022 EXHIBIT P10A TRUE COPY OF THE UPDATED 26AS TDS IN RESPECTOF THE PETITIONER, DOWNLOADED FROM THE SITE OFTHE IT DEPARTMENT SHOWING ZERO BALANCESOF THE PETITIONER, DOWNLOADED FROM THE SITE OFTHE IT DEPARTMENT SHOWING ZERO BALANCES EXHIBIT P11A TRUE COPY OF THE APPEAL MEMORANDUM FILED BYTHE PETITIONER DATED 23.04.2022THE PETITIONER DATED 23.04.2022 EXHIBIT P12A TRUE COPY OF THE LEGAL NOTICE DATED 23/05/2023 EXHIBIT P13A TRUE COPY OF THE MAIL COMMUNICATION OF THECOVERING LETTER DATED 22.06.2023COVERING LETTER DATED 22.06.2023 EXHIBIT P14A TRUE COPY OF THE LETTER NO. ITBA/COM/F/17/2023-24/1054465829(1) DATED 20/07/20232023-24/1054465829(1) DATED 20/07/2023 EXHIBIT P15A TRUE COPY OF THE MEDICAL RECORDS OF THEPETITIONERPETITIONER EXHIBIT P16A TRUE COPY OF THE REPLY ISSUED BY THE 1STRESPONDENTRESPONDENT EXHIBIT P17A TRUE COPY OF THE ORDER ISSUED BY THE APPELLATEAUTHORITYAUTHORITY EXHIBIT P18A TRUE COPY OF THE ORDER ISSUED BY THE 1STRESPONDENTRESPONDENT EXHIBIT P19A TRUE COPY OF THE STAY ORDER DATED 02.05.2023ISSUED BY THE 1ST RESPONDENTISSUED BY THE 1ST RESPONDENT EXHIBIT P20A TRUE COPY OF THE LETTER REFLECTING THE REFUND EXHIBIT P21A TRUE COPY OF THE EMAIL REQUEST FROM THE INCOMETAX DEPARTMENTTAX DEPARTMENT EXHIBIT P22A TRUE COPY OF THE EMAIL INTIMATION REGARDINGTHE RECOVERYTHE RECOVERY EXHIBIT P23A TRUE COPY OF THE LETTER REFLECTING THE REFUND EXHIBIT P24A TRUE COPY OF THE EMAIL INTIMATION SHOWING THEPROPOSED ADJUSTMENTPROPOSED ADJUSTMENT EXHIBIT P25A TRUE COPY OF THE EMAIL INTIMATION REGARDINGTHE RECOVERYTHE RECOVERY EXHIBIT P26A TRUE COPY OF THE CHALLAN RECEIPT EXHIBIT P27A TRUE COPY OF THE REPLY FROM THE 1ST RESPONDENTDATED 10.11.2023DATED 10.11.2023