Wp(C)/2789/2023 Of Heartwares Medicals India Private Limited v. Assessment Unit, Income Tax Department

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 22 DAY OF NOVEMBER 2023 / 1ST AGRAHAYANA, 1945 WP(C) NO. 2789 OF 2023 PETITIONER/S: HEARTWARES MEDICALS INDIA PRIVATE LIMITED,DOOR NO.3/1008-B, IMA HALL ROAD, NADAKKAVU, CALICUT KERALA, INDIA-673011. REPRESENTED BY ITS MANAGING DIRECTOR MR.SHIHABUDEEN.K. BY ADVS.ANIL D. NAIRTELMA RAJUP.K.BIJUANJANA A. RESPONDENT/S: ASSESSMENT UNIT, INCOME TAX DEPARTMENT,NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), NEW DELHI, PIN - 110001 BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT THIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 22.11.2023, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: J U D G M E N T The present writ petition has been filed underArticle 226 of the Constitution of India impugningthe assessment order in Ext.P13 dated 26.12.2022 inrespect of the assessment year 2021-22. Learnedcounsel for the petitioner submits that enquirieswere held behind the back of the petitioner-assessee in respect of certain sales effected todifferent hospitals and the assessing authority didnot take into consideration the details of theconfirmation of the sales made by the petitioner todifferent hospitals, and the amount of saleconsiderations had been added as income of thepetitioner. It is further submitted that thepetitioner had obtained the details with regard toconfirmation of the sales from the said hospitalsafter the assessment order. He, therefore, praysthat the matter may be remanded back to theassessing authority with direction to re-consider the same on the basis of the sales confirmation asper Ext.P14 series documents. 2.Under Section 133C of the Income Tax Act,1961, (“Act”, for short) there is no requirementthat notices for confirming the sales etc. shouldbe issued with the knowledge of the assessee. Theassessment order would disclose that in respect ofthe alleged sales effected by the petitioner todifferent hospitals, notice under Section 133(6)was sent to each of the hospitals. However, noresponse was received from the said hospitals.During the assessment proceedings, the petitionerdid not file sale confirmation letters, which havebeen obtained by him after the assessment order.Once the sales confirmation letters were not beforethe assessing authority, the assessment ordercannot be faulted with for not considering theevidence, which were collected by the petitioner-assessee after the issuance of the assessmentorder. The petitioner has the remedy of appealagainst the assessment order. Instead of filing appeal against the assessment order, the petitionerhas approached this Court with this writ petition.3.In exercise of the power of judicialreview under Article 226 of the Constitution ofIndia, this Court can interfere with theproceedings only when the same has been issuedwithout jurisdiction or there has been ininfraction of principles of natural justice. Thepetitioner was put to notice and thereafter theassessment proceedings had been completed.Therefore, I do not find that the impugnedassessment order is without jurisdiction or therehas been any violation of principles of naturaljustice. This Court would not like to consider themerits of the assessment order. The petitioner wasgiven notice under Section 142(1) of the Act. In view of the above, the present writpetition is disposed of with liberty to thepetitioner to file appeal under Section 246A of theAct before the appellate authority against theimpugned assessment order, within a period of In view of the above, the present writpetition is disposed of with liberty to thepetitioner to file appeal under Section 246A of theAct before the appellate authority against theimpugned assessment order, within a period of fifteen (15) days from today. If such an appeal isfiled before the appellate authority as above, theappellate authority should consider the same onmerits, without going into the question oflimitation. It is directed that no coercive stepsshall be taken against the petitioner for a periodof fifteen (15) days from today, for realisation ofthe tax determined vide the impugned assessmentorder. Pending interlocutory application, if any, inthe present writ petition stands dismissed. jg Sd/- JUDGE DINESH KUMAR SINGH APPENDIX OF WP(C) 2789/2023 PETITIONER EXHIBITS Exhibit P1TRUE COPY OF THE NOTICE UNDER SECTION 143(2) DATED 28.06.2022 ISSUED BY THE RESPONDENT TO THE PETITIONER .DATED 28.06.2022 ISSUED BY THE RESPONDENT TO THE PETITIONER . Exhibit P2TRUE COPY OF THE SCREENSHOT ACKNOWLEDGEMENT DATED 11.07.2022 OF THE REPLY FILED BY THE PETITIONER.DATED 11.07.2022 OF THE REPLY FILED BY THE PETITIONER. Exhibit P3TRUE COPY OF THE NOTICE DATED 11.10.2022 UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER.UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER. Exhibit P4TRUE COPY OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT DATED 24.10.2022 OF THE REPLYFILED BY THE PETITIONER.ACKNOWLEDGEMENT DATED 24.10.2022 OF THE REPLYFILED BY THE PETITIONER. Exhibit P5TRUE COPY OF THE NOTICE DATED 31.10.2022 UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER.UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER. Exhibit P6TRUE COPY OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT DATED 05.11.2022 OF THE REPLYFILED BY THE PETITIONER.ACKNOWLEDGEMENT DATED 05.11.2022 OF THE REPLYFILED BY THE PETITIONER. Exhibit P7TRUE COPY OF THE NOTICE DATED 09.11.2022 UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER.UNDER SECTION 142(1) ALONG WITH ANNEXURE ISSUED BY THE RESPONDENT TO THE PETITIONER. Exhibit P8TRUE COPY OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT DATED 26.11.2022 OF THE REPLYFILED BY THE PETITIONER.ACKNOWLEDGEMENT DATED 26.11.2022 OF THE REPLYFILED BY THE PETITIONER. Exhibit P9TRUE COPY OF THE NOTICE DATED 21.11.2022 UNDER SECTION 142(1) ISSUED BY THE RESPONDENTUNDER SECTION 142(1) ISSUED BY THE RESPONDENT TO THE PETITIONER. Exhibit P10TRUE COPY OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT DATED 26.11.2022 OF THE REPLYFILED BY THE PETITIONER.ACKNOWLEDGEMENT DATED 26.11.2022 OF THE REPLYFILED BY THE PETITIONER. Exhibit P11TRUE COPY OF THE SHOW CAUSE NOTICE DATED 17.12.2022 ISSUED BY THE RESPONDENT TO THE PETITIONER .17.12.2022 ISSUED BY THE RESPONDENT TO THE PETITIONER . Exhibit P12TRUE COPY OF THE SCREENSHOT OF THE ACKNOWLEDGEMENT DATED 21.12.2022 OF THE REPLYFILED BY THE PETITIONER.ACKNOWLEDGEMENT DATED 21.12.2022 OF THE REPLYFILED BY THE PETITIONER. Exhibit P13TRUE COPY OF THE ASSESSMENT ORDER FOR THE A.Y2021-22 ISSUED BY THE RESPONDENT TO THE PETITIONER.2021-22 ISSUED BY THE RESPONDENT TO THE PETITIONER. Exhibit P14TRUE COPY OF THE LETTER DATED 13.01.2023 CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TRANSLUMANIA THERAPEUTICS LLP.CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TRANSLUMANIA THERAPEUTICS LLP.Exhibit TRUE COPY OF THE LETTER CONFIRMING THE P14(a)PURCHASE EFFECTED BY THE PETITIONER FROM LAKESHORE HOSPITAL AND RESEARCH CENTRE LTD.P14(a)PURCHASE EFFECTED BY THE PETITIONER FROM LAKESHORE HOSPITAL AND RESEARCH CENTRE LTD.Exhibit TRUE COPY OF THE LETTER DATED 20.01.2023 P14(b)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TELLICHERRY CO- OPERATIVE HOSPITAL.P14(b)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TELLICHERRY CO- OPERATIVE HOSPITAL. Exhibit P14TRUE COPY OF THE LETTER DATED 13.01.2023 CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TRANSLUMANIA THERAPEUTICS LLP.CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TRANSLUMANIA THERAPEUTICS LLP.Exhibit TRUE COPY OF THE LETTER CONFIRMING THE P14(a)PURCHASE EFFECTED BY THE PETITIONER FROM LAKESHORE HOSPITAL AND RESEARCH CENTRE LTD.P14(a)PURCHASE EFFECTED BY THE PETITIONER FROM LAKESHORE HOSPITAL AND RESEARCH CENTRE LTD.Exhibit TRUE COPY OF THE LETTER DATED 20.01.2023 P14(b)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TELLICHERRY CO- OPERATIVE HOSPITAL.P14(b)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM TELLICHERRY CO- OPERATIVE HOSPITAL. Exhibit TRUE COPY OF THE LETTER DATED 10.01.2023 P14(c)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM STARCARE HOSPITAL. Exhibit TRUE COPY OF THE LETTER DATED 11.01.2023 P14(d)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM MOTHER CARE & HEALTH CENTRE P14(d)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM MOTHER CARE & HEALTH CENTRE PVT LTD Exhibit TRUE COPY OF THE LETTER DATED 04.01.2023 P14(e)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM FAIR PRICE MEDICAL SHOP.Exhibit TRUE COPY OF THE LETTER DATED 06.01.2023 P14(f)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM EMS MEMORIAL CO- OPERATIVE HOSPITAL & RESEARCH CENTRE.Exhibit TRUE COPY OF THE LETTER DATED 09.01.2023 P14(g)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM SREE ANJANEYA MEDICAL TRUST.Exhibit TRUE COPY OF THE LETTER DATED 12.01.2023 P14(h)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM RAJIV GANDHI CO- OPERATIVE HOSPITAL.Exhibit TRUE COPY OF THE LETTER DATED 20.01.2023 P14(i)CONFIRMING THE PURCHASE EFFECTED BY THE PETITIONER FROM BHARAT HOSPITAL.