Wp(C)/21524/2021 Of Sree Narayana Dharma Sabha v. The Additional/Joint/Deputy/Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS MONDAY, THE 22 DAY OF NOVEMBER 2021 / 1ST AGRAHAYANA, 1943 WP(C) NO. 21524 OF 2021 PETITIONER: SREE NARAYANA DHARMA SABHASREYAS, MADAVANA P.O,KODUNGALLUR-680666, THRISSUR DISTRICT,REPRESENTED BY ITS SECRETARY SUJA K.V.BY ADVS.JOSEPH MARKOSE (SR.)ABRAHAM JOSEPH MARKOSISAAC THOMASALEXANDER JOSEPH MARKOSSHARAD JOSEPH KODANTHARA RESPONDENTS: ADV. CHRISTOPHER ABRAHAM -SC, ADV. JOSEPH MARKOSE SR.- P THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.11.2021, THECOURT ON THE SAME DAY DELIVERED THE FOLLOWING: BECHU KURIAN THOMAS, J ==========================W.P.(C) No.21524 of 2021 --------------------------------------- Dated this the 22nd day of November, 2021 JUDGMENT Petitioner is a charitable society registered under Section12A of the Income Tax Act, 1961 [for short, the Act].For the assessment year 2015-2016 and 2016-2017,petitioner filed its return showing 'Nil' income, claimingthat the entire income was applied for charitablepurposes. However, the assessments were reopened underSection 148 of the Act. Petitioner submits thatsubsequently it was informed that the assessments will becompleted under the Faceless Assessment scheme, andthat notices will be issued from the said authority. 2. For the assessment year 2015-2016, petitioner was served with show cause notice dated 20.09.2021 asking thepetitiner to respond by 23.59 hours on 21.09.2021. On22.09.2021, Ext.P10 assessment order was issued afterobserving that assessee had not responded even by WP(C) NO. 21524 OF 2021 22.09.2021. 3. For the assessment year 2016-2017, assessee was issued with a show cause notice dated 17.09.2021 asking it to respond by 20.09.2021. On 22.09.2021, Ext.P18 assessment order was issued after observing that assesseewas aware of the proceedings all along.was aware of the proceedings all along. 4. The assessment orders Ext.P10 and Ext.P18 are underchallenge on the ground of violation of principles ofnatural justice.challenge on the ground of violation of principles ofnatural justice. 5.I have heard the arguments of Adv.Joseph Markos,learned Senior counsel on behalf of the petitioner aswell as Adv.Christopher Abraham, the learned Standingcounsel for the respondents.learned Senior counsel on behalf of the petitioner aswell as Adv.Christopher Abraham, the learned Standingcounsel for the respondents. 6.It is curious to note that the assessing officerproceeded to assess the assessee by the orders impugnedin this case when they failed to respond within 48 hoursof serving the show cause notice. It is elementery thatevery order must be rendered only after granting areasonable opportunity for responding as well as hearing.The grant of a reasonable opportunity to file a responseproceeded to assess the assessee by the orders impugnedin this case when they failed to respond within 48 hoursof serving the show cause notice. It is elementery thatevery order must be rendered only after granting areasonable opportunity for responding as well as hearing.The grant of a reasonable opportunity to file a response is an element of the cherished principle of naturaljustice. justice. 6.It is curious to note that the assessing officerproceeded to assess the assessee by the orders impugnedin this case when they failed to respond within 48 hoursof serving the show cause notice. It is elementery thatevery order must be rendered only after granting areasonable opportunity for responding as well as hearing.The grant of a reasonable opportunity to file a responseproceeded to assess the assessee by the orders impugnedin this case when they failed to respond within 48 hoursof serving the show cause notice. It is elementery thatevery order must be rendered only after granting areasonable opportunity for responding as well as hearing.The grant of a reasonable opportunity to file a response is an element of the cherished principle of naturaljustice. justice. 7.Consideration of the objections raised by an assesseeis the platform from which the rights and obligations ofthe assessee depends. Therefore, unless sufficientopportunity is granted to the assessee to respond whichis mandated by the explicit provisions of Section 144(B)(1)(xxii) of the Act, the assessee will be put to prejudice.is the platform from which the rights and obligations ofthe assessee depends. Therefore, unless sufficientopportunity is granted to the assessee to respond whichis mandated by the explicit provisions of Section 144(B)(1)(xxii) of the Act, the assessee will be put to prejudice.8.It is clear from the circumstances that have transpiredin the instant case, from the time of show cause noticetill the date of assessment, for both the assessmentyears, that the show cause notices failed to prividesufficient opportunity to the petitioner to respond. Theviolation of principles of natural justice in the ordersimpugned is manifest. in the instant case, from the time of show cause noticetill the date of assessment, for both the assessmentyears, that the show cause notices failed to prividesufficient opportunity to the petitioner to respond. Theviolation of principles of natural justice in the ordersimpugned is manifest. 9.Accordingly the orders of assessment produced asExt.P10 and Ext.P18 dated 22.09.2021 shall stand setaside and the 1st respondent is directed to pass freshorders of assessment after granting a reasonableopportunity of being heard after granting it sufficientExt.P10 and Ext.P18 dated 22.09.2021 shall stand setaside and the 1st respondent is directed to pass freshorders of assessment after granting a reasonableopportunity of being heard after granting it sufficient time to file an objection to the petition to show causenotice. The objections, if any, to the show causenotices shall be filed by the petitioner within a periodof 15 days from the date of receipt of a copy of thisjudgment and the assessing authority shall thereafter, fixa date for hearing of the petitioner. Since this Courthas, by this judgment set aside Exts.P10 & P18assessment orders, the consequential notices of penaltyissued as Exts.P19 & P20 shall also stand set aside.The writ petition is allowed as above. Sd/- BECHU KURIAN THOMAS, JUDGE AMV/23/11//2021 APPENDIX OF WP(C) 21524/2021 RESPONDENTS EXHIBITS : TRUE COPY