Wp(C)/7064/2024 Of Haridas v. Income Tax Officer

IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGHFRIDAY, THE 23 DAY OF FEBRUARY 2024 / 4TH PHALGUNA, 1945WP(C) NO. 7064 OF 2024 PETITIONER: HARIDAS,AGED 58 YEARS MANGALATH HOUSE, POTHOOR P.O, KALPETTA, WAYANAD, PIN - 673121 BY ADV S.ARUN RAJ RESPONDENTS: 1INCOME TAX OFFICER,WARD-1, KALPETTA, SULTHAN BATHERY ROAD, KAINATTY, KALPETTA, WAYANAD, PIN - 673122 2THE PRINCIPAL COMMISSIONER OF INCOME TAX,AAYAKAR BHAVAN, NORTH BLOCK, MANANCHIRA, KOZHIKODE, PIN- 6730013INCOME TAX APPELLATE TRIBUNAL,COCHIN BENCH, KENDRIYA BHAVAN,KAKKANAD, ERNAKULAM,COCHIN, PIN - 682030 P.G. JAYASHANKAR-SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: JUDGMENT Dated this the 23[rd] day of February, 2024 The present writ petition has been filed by the petitioner seeking the following reliefs: (i)To issue a writ of mandamus directing the 3[rd]respondent – Income Tax Appellate Tribunal, CochinBench, Cochin to consider and pass orders on ExhibitP3 appeal and /or Exhibit P4 stay petition for the AY2014-15, as expeditiously as possible, at any rate withina time limit as may be fixed by this Honourable Court.respondent – Income Tax Appellate Tribunal, CochinBench, Cochin to consider and pass orders on ExhibitP3 appeal and /or Exhibit P4 stay petition for the AY2014-15, as expeditiously as possible, at any rate withina time limit as may be fixed by this Honourable Court. (ii)To issue a writ of mandamus directing the 1[st] and 2[nd]respondents/income tax department not to take anyfurther proceedings based on Exhibit P1 assessmentorder for the AY 2014-15 pending final disposal ofExhibit P3 statutory appeal/Exhibit P4 stay petition bythe 3[rd] respondentrespondents/income tax department not to take anyfurther proceedings based on Exhibit P1 assessmentorder for the AY 2014-15 pending final disposal ofExhibit P3 statutory appeal/Exhibit P4 stay petition bythe 3[rd] respondent (iii)To issue such other appropriate writ, order ordirections as this Hon’ble Court may deem just andproper to issue in the facts and circumstances of thecase.directions as this Hon’ble Court may deem just andproper to issue in the facts and circumstances of thecase. 2.The assessment year is of 2014-15. Thepetitioner, who is an assessee under the provisions of theIncome Tax Act, 1961 (hereinafter referred to as ‘I.TAct,1961’) is in the business of real estate. The petitionerdid not file returns of his income for the assessment year2014-15. As per the ITS information it was noticed thatthe assessee had sold a landed property of an extent 5.67 WPC No 7064 of 2024 ares of land for a sale consideration of Rs.49,19,000/- on25.04.2013. The petitioner had also purchased certainother properties during the financial year relevant to theassessment year 2014-15. In view thereof, thepetitioner’s case was re-opened under Section 147 of theI.T Act, 1961. 3.Notice under Section 148 was issued to thepetitioner on 09.01.2018 after taking prior approval fromthe Joint Commissioner of the Income Tax of theconcerned Range. Physical copy of the said notice wasserved on the petitioner on 16.01.2018 besides on theportal and email. The petitioner choose not to file returnof his income, despite the service of notice. Furthernotice under Section 142(1) was issued and served on thepetitioner on 04.09.2018. Physical copy of the same wasalso served on the petitioner on 11.09.2018. Thepetitioner did not give any response to the said notice aswell. The petitioner was not co-operating with thedepartmental proceedings nor furnishing any details inrespect of the income generated from the sale of the 3.Notice under Section 148 was issued to thepetitioner on 09.01.2018 after taking prior approval fromthe Joint Commissioner of the Income Tax of theconcerned Range. Physical copy of the said notice wasserved on the petitioner on 16.01.2018 besides on theportal and email. The petitioner choose not to file returnof his income, despite the service of notice. Furthernotice under Section 142(1) was issued and served on thepetitioner on 04.09.2018. Physical copy of the same wasalso served on the petitioner on 11.09.2018. Thepetitioner did not give any response to the said notice aswell. The petitioner was not co-operating with thedepartmental proceedings nor furnishing any details inrespect of the income generated from the sale of the property and therefore, it was decided to complete theassessment based on the materials available with thedepartment under Section 144 of the I.T Act,1961. Thetotal income of Rs.78,13,969/- was added to the return nilincome on which the tax interest have been demandedand the penalty proceedings have been initiated. 4.The petitioner had filed appeal against the saidassessment order. However, the appeal came to bedismissed vide Ext.P2 order, against which the petitionerhas filed appeal before the Income Tax AppellateTribunal. Despite the huge liability of the tax, thepetitioner had not deposited a single penny. Besides theliability of tax of Rs. 46,57,980/-, there are interest andpenalty. The petitioner now wants this Court to stay therecovery of the dues as per the assessment order. ThisCourt finds no ground to grant any indulgence to thepetitioner. The petitioner has not co-operated incompletion of the assessment proceedings, even theappellate order was rendered ex-parte. Such petitioner is WPC No 7064 of 2024 5 not entitled for any relief from this Court. Therefore, thewrit petition is hereby dismissed. However, despite thedismissal of this writ petition, the Income Tax AppellateTribunal should consider the stay petition filed along withthe appeal expeditiously. Sd/- DINESH KUMAR SINGH JUDGE AP APPENDIX OF WP(C) 7064/2024 PETITIONER EXHIBITSExhibit P-1 Exhibit P-2 Exhibit P-3 Exhibit P-4 TRUE COPY OF THE ASSESSMENT ORDER DATED 21-11-2018 UNDER SECTION 144 R.W.S 147 OF THE ACT FOR THE AY 2014-15 ALONG WITH THE DEMAND NOTICE ISSUED BY THE 1ST RESPONDENTTRUE COPY OF ORDER DATED 17-3-2023 PASSED BY THE CIT (APPEALS), NFAC, DELHI FOR THE AY 2014-15 TRUE COPY OF THE SECOND APPEAL DATED 8-1-2024 FILED BY THE PETITIONER BEFORE THE 3RDRESPONDENT FOR THE AY 2014-15 ALONG WITH THE DELAY CONDONATION PETITION TRUE COPY OF THE STAY PETITION DATED 19-2-2024 FILED BY THE PETITIONER BEFORE THE 3RDRESPONDENT FOR THE AY 2014-15