Wp(C)/33718/2023 Of Thyagarajan Parameswaran v. Income Tax Officer

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. 33718 OF 2023 PETITIONER/S:THYAGARAJAN PARAMESWARAN, AGED 78 YEARS1/353 PARAMESWARAN VILLA, AROOR, ALLEPPEY, REP BY SHINY T DAUGHTER, RESIDING AT SAME ADDRESS, PIN - 688534BY ADVS.P.RAGHUNATHANPREMJIT NAGENDRANM.SHYLAJARISHAL.K RESPONDENT/S:1INCOME TAX OFFICER, WARD 2, AAYAKAR BHAVAN,INCOME TAX OFFICE , BEACH ROAD, ALAPUZHA, PIN - 6880012ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX/ INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE : NEW DELHI, PIN - 1100013CENTRAL BOARD OF DIRECT TAXESMINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI, REP. BYCHAIRMAN, PIN - 1100014GOVERNMENT OF INDIA, MINISTRY OF FINANCE, CENTRAL SECRETARIAT, NORTH BLOCK, NEW DELHI, REP. BY SECRETARY, PIN - 110001 OTHER PRESENT: SRI.JOSE JOSEPH-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSIONON 22.11.2023, THE COURT ON THE SAME DAY DELIVERED THEFOLLOWING: J U D G M E N T The present writ petition has been filed bythe petitioner-assessee under the provisions of theIncome Tax Act, 1961 (“IT Act”, for short)impugning the assessment order dated 22.4.2021,Ext.P2, for the assessment year 2018-19 and penaltyorders, Exts.P3 and P4. Mainly two grounds havebeen urged while impugning the aforesaid orders:(i) the assessment order was finalised beyond thelimitation prescribed under Section 153 of the ITAct, in as much as the assessment order is dated22.4.2021 while the limitation for finalising theassessment was on 30.9.2020; and (ii) thepetitioner was given only three days time vide theshow cause notices dated 9.4.2021 and 17.4.2021,Exts.P8 and P9. 2.On the last date of hearing of this writpetition, Sri.Jose Joseph, learned Senior StandingCounsel for the Income Tax Department, was directedto get instructions on the point of limitation. Today, Sri.Jose Joseph has produced twonotifications dated 27.2.2021 and 27.4.2021 issuedby the Central Board of Direct Taxes in exercise ofthe powers conferred under Section 3(1) of theTaxation and Other Laws (Relaxation and Amendmentof Certain Provisions) Act, 2020. That was theperiod of Covid-19 pandemic. Vide the firstnotification, the limitation for assessment or re-assessment under the IT Act and the time limit forcompletion of such action under Section 153 orSection 153B of the IT Act was extended upto30.4.2021 and vide the second notification referredto above, the limitation was further extended till30.6.2021. 3.In the present case, the assessment orderis dated 22.4.2021 and therefore, the impugnedassessment order is within the limitation asextended by the first notification dated 27.2.2021,i.e. up to 30.4.2021. Hence, in view of thenotification No.S.O.966(E) dated 27.2.2021, I findno substance in the submission of the learned counsel for the petitioner that the impugnedassessment order is beyond the limitationprescribed under the statute. 4.In respect of the second submission, itmay be noted that the petitioner was issued noticesunder Section 142(1) of the IT Act on 24.12.2019,6.2.2020,28.7.2020,1.9.2020,8.10.2020,18.11.2020, 4.3.2021 and 24.3.2021. Though thesenotices were duly served on the petitioner, heneither responded to any of the notices, nor filedany reply thereto. 5.Show cause notice under Section 144 of theIT Act dated 9.4.2021, Ext.P8, was issued to thepetitioner. The said show cause notice would alsomention the clear dates, when the notices wereissued to the petitioner under Section 142(1).Vide the said show cause notice, the petitioner wasgranted time for filing his response till12.4.2021. The petitioner did not file any replyto the said show cause notice. Another show causenotice dated 17.4.2021, Ext.P9, was also issued to 5.Show cause notice under Section 144 of theIT Act dated 9.4.2021, Ext.P8, was issued to thepetitioner. The said show cause notice would alsomention the clear dates, when the notices wereissued to the petitioner under Section 142(1).Vide the said show cause notice, the petitioner wasgranted time for filing his response till12.4.2021. The petitioner did not file any replyto the said show cause notice. Another show causenotice dated 17.4.2021, Ext.P9, was also issued to the petitioner putting him on notice that, in casethe petitioner failed to respond to the notice, hisincome would be assessed under Section 144 on thebasis of the materials available before theassessing authority. By the said show cause noticedated 17.4.2021, the petitioner was affordedopportunity to file response till 20.4.2021. Thereis nothing on record to show that the petitionerapplied for extension of time to file reply to theaforesaid two show cause notices, Exts.P8 and P9.The petitioner was issued as many as eight noticesunder Section 142(1) of the IT Act, before issuingthe show cause notices. All the notices remainunanswered. Therefore, at this stage, thepetitioner cannot take the ground that thepetitioner was not afforded sufficient opportunityfor filing reply to the show cause notices issuedunder Section 144 or to the notices under Section142(1). It would have been a different case, ifthe petitioner asked for more time to file reply tothe show cause notices in Exts.P8 and P9 and the Authority denied the same. The petitioner did notrespond to the said notices at all. In viewthereof, I find that there has been substantialcompliance of the principles of natural justice.Since the petitioner failed to respond to any oneof the eight notices issued under Section 142(1)and two show cause notices issued under Section 144of the IT Act, he cannot complain about violationof the principles of natural justice. I find no merit in the present writ petition,which is hereby dismissed. Pending interlocutory application, if any, inthe present writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE WP(C) NO. 33718 OF 2023 APPENDIX OF WP(C) 33718/2023 PETITIONER EXHIBITS Exhibit P-1MEDICAL CERTIFICATE/PRESCRIPTION IN RESPECT OF PETITIONER DTD 21.02.2023OF PETITIONER DTD 21.02.2023 Exhibit P-2ASSESSMENT ORDER DT. 22.04.2021 FOR AY 2018.19 BY SECOND RESPONDENT2018.19 BY SECOND RESPONDENT Exhibit P-3PENALTY ORDER U/S 270A DT. 10.02.2021 FOR 2018.192018.19 Exhibit P-4PENALTY ORDER U/S 272A[1][D] DT. 17.02.2021 FOR 2018.19FOR 2018.19 Exhibit P-5ARREAR NOTICE DT. 17.07.2023 ISSUED BY FIRSTRESPONDENTRESPONDENT Exhibit P-6STATEMENT OF INCOME RELATING TO AY 2018.19 UPLOADED ON 21.07.2018UPLOADED ON 21.07.2018 Exhibit P-7RETURN OF INCOME IN FORM ITR-2 FOR 2018.19Exhibit P-8SHOW CAUSE NOTICE DT. 09.04.2021 BY SECOND RESPONDENTExhibit P-8SHOW CAUSE NOTICE DT. 09.04.2021 BY SECOND RESPONDENT Exhibit P-9SHOW CAUSE NOTICE DT. 17.04.2021 BY SECOND RESPONDENTRESPONDENT