Wp(C)/21424/2023 Of Genesis Institute Of Medical Science Private Limited v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGHFRIDAY, THE 24 DAY OF NOVEMBER 2023 / 3RD AGRAHAYANA, 1945 WP(C) NO. 21424 OF 2023 PETITIONER/S:GENESIS INSTITUTE OF MEDICAL SCIENCE PRIVATE LIMITED, 32/1094/1-8, CHALA BYPASS, THOTTADA POST,KANNUR, REPRESENTED BY ITS DIRECTOR SRI. MOHANAN ATHAKASSERY, PIN - 670007BY ADVS.P.J.ANILKUMAR (A-1768)K.N.SREEKUMARANN.SANTHOSHKUMAR RESPONDENT/S:1INCOME TAX OFFICER.,WARD-1, AAYKAR BHAVAN,MELECHOVVA,KANNOTHUMCHAL, KANNUR, PIN - 6700062ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER,ASSESSMENT UNIT, INCOME TAX DEPARTMENT,NATIONAL FACELESS ASSESSMENT CENTER, NEW DELHI-100001.3ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRTE, INCOME TAX DEPARTMENT ,NEW DELHI-100001.4ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER, NATIONAL FACELESS PENALTY CENTRE, INCOME TAX DEPARTMENT, NEWDELHI-100001. BY ADV CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 24.11.2023, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: J U D G M E N T The present writ petition has been filedimpugning order in Ext.P9 dated 8.6.2023 passedunder Section 270A of the Income Tax Act, 1961(“Act”, for short) in respect of the assessmentyear 2021-22. The assessment with respect to thepetitioner was finalised by adding Rs.8,37,97,401/-to the returned income of the petitioner for theassessment year under consideration. It was foundthat since the said amount was detected during thecourse of scrutiny assessment proceedings, penaltyproceedings under Section 270A of the Act were tobe initiated for under-reporting of income inconsequence of misreporting of income. 2.The petitioner has not challenged theassessment order and is only aggrieved by thepenalty order passed under Section 270A of the Act.The petitioner was issued show cause notice dated9.12.2022, for filing its reply by 31.12.2022. Inresponse to the said notice, the petitioner filed its response on 30.12.2022 and requested foradjournment. Thereafter, another show cause noticewas served on 6.4.2023 asking the petitioner as towhy penalty under Section 270A of the Act forunder-reporting of income in consequence ofmisreporting should not be levied. In response tothe said notice, the assessee filed its reply on12.4.2023 by attaching some judgments passed by theIncome Tax Appellate Tribunal. 3.On perusal of the impugned order, Ext.P9,it is evident that no date for hearing was fixed,that after service of the show cause notice dated6.4.2023 on the petitioner and filing of its replydated 12.4.2023 to the said show cause notice, theimpugned order came to be passed on 8.6.2023. ThisCourt is of the view that since the order impugnedhas been passed in violation of the principles ofnatural justice as no date of hearing wascommunicated to the petitioner after petitioner'sreply dated 12.4.2023 to the show cause noticedated 6.4.2023, the impugned order dated 8.6.2023, Ext.P9, is set aside and the matter is remandedback to the 4[th] respondent to communicate the dateof hearing to the petitioner on the Portal of theIncome Tax Department and also through the e-mail-id given to the Income Tax Department. It is madeclear that in case the petitioner fails to appearand make submissions in response to the notice ofhearing so to be given by the 4[th] respondent, nofurther opportunity shall be granted to thepetitioner. The petitioner shall not seek anyadjournment on the date of hearing so fixed by the4[th] respondent. With the aforesaid observations, the presentwrit petition stands allowed. Pending interlocutory application, if any, inthe writ petition stands dismissed. jg Sd/- DINESH KUMAR SINGH JUDGE 5 APPENDIX OF WP(C) 21424/2023 PETITIONER EXHIBITS With the aforesaid observations, the presentwrit petition stands allowed. Pending interlocutory application, if any, inthe writ petition stands dismissed. jg Sd/- DINESH KUMAR SINGH JUDGE 5 APPENDIX OF WP(C) 21424/2023 PETITIONER EXHIBITS Exhibit-P1TRUE COPY OF THE E-ACKNOWLEDGEMENT DOCUMENTBEARING NUMBER: 365669130150322 FOR FILING OF ITR-6 RELATING TO AY-2021-22 DATED 15..03..2022 .BEARING NUMBER: 365669130150322 FOR FILING OF ITR-6 RELATING TO AY-2021-22 DATED 15..03..2022 . Exhibit-P2TRUE COPY OF THE ORDER U/S 143(3) READ WITHSECTION 144B OF THE ACT DATED 09..12..2022 ISSUED BY THE 2ND RESPONDENT.SECTION 144B OF THE ACT DATED 09..12..2022 ISSUED BY THE 2ND RESPONDENT. Exhibit-P3TRUE COPY OF THE NOTICE U/S.274 READ WITH SECTION 270A OF THE ACT DATED 09..12..2022 ISSUED BY THE 2ND RESPONDENT.SECTION 270A OF THE ACT DATED 09..12..2022 ISSUED BY THE 2ND RESPONDENT. Exhibit-P4TRUE COPY OF THE RESPONSE FILED BY THE PETITIONER DATED 30..12..2022 AGAINST EXT-P3 NOTICE ISSUED BY THE 2ND RESPONDENT.PETITIONER DATED 30..12..2022 AGAINST EXT-P3 NOTICE ISSUED BY THE 2ND RESPONDENT. Exhibit-P5TRUE COPY OF THE NOTICE DATED 06..04..2023 U/S.270A OF THE ACT WITH DIN:ITBA/PNL/F/270A/2023-24/1051916204(1) ISSUED BY THE 2ND RESPONDENT. Exhibit-P6TRUE COPY OF THE REPLY DATED 12..04..2023 FILED AGAINST EXT-P5 NOTICE THROUGH PORTAL VIDE E-ACKNOWLEDGEMENT NO: 114107141120423. Exhibit-P7TRUE COPY OF THE INTIMATION OF SCHEDULE OF PERSONAL HEARING THROUGH VIDEO CONFERENCINGDATED 25..05..2023 VIDE DIN:ITBA/PNL/S/VC NOTICE/2023-24/1053159249(1). Exhibit-P8TRUE COPY OF THE WEB PAGE OF THE INCOME TAXDEPARTMENT DATED 30..05..2023 EVIDENCING THE FILING OF THE ADJOURNMENT APPLICATION ALONG WITH ADJOURNMENT APPLICATION AGAINST DEPARTMENT DATED 30..05..2023 EVIDENCING THE FILING OF THE ADJOURNMENT APPLICATION ALONG WITH ADJOURNMENT APPLICATION AGAINST Exhibit-P9 Exhibit-P10 Exhibit-P11 EXT-P7 NOTICE . TRUE COPY OF THE PENALTY PROCEEDINGS U/S.270A OF THE ACT DATED 08..06..2023 FOR THE ASSESSMENT YEAR 2021-22. TRUE COPY OF THE NOTIFICATION NO: 54/2022 DATED 27..05..2022 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES. TRUE COPY OF THE JUDGMENT IN RENJU VS THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX , IN W.P.(C) 11735/2022 DATED 16..03..2023.