Wp(C)/7446/2021 Of Santhosh George v. The Principal Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH THURSDAY, THE 30 DAY OF NOVEMBER 2023/9TH AGRAHAYANA, 1945 WP(C) NO. 7446 OF 2021 PETITIONER: SANTHOSH GEORGE,THEKKEMURIYIL, ULICKAL, KANNUR-670 705 BY ADVS.T.M.SREEDHARAN (SR.)NISHA JOHNALAN PRIYADARSHI DEV RESPONDENTS: 1THE PRINCIPAL COMMISSIONER OF INCOME TAXAAYAKAR BHAVAN, NORTH BLOCK, NEW ANNEXE BUILDING, MANANCHIRA, KOZHIKODE-673 0012THE INCOME TAX OFFICER,WARD -1(4), AAYAKAR BHAVAN, KANNUR-670 006 3THE DEPUTY COMMISSIONER OF INCOME TAX,CENTRALISED PROCESSING CENTRE, INCOME TAX DEPARTMENT, BANGALURE-560 500 BY SRI. CHRISTOPHER ABRAHAM, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLYHEARD ON 30.11.2023, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: JUDGMENT The present writ petition has been filed impugning Ext.P5 order passed by the Principal Commissioner ofIncome Tax. The main contention of the learned counselfor the petitioner is that the entire contract receipts havebeen assessed as income and the assessment order hasbeen issued under Section 143(1) of the Income Tax Act,1961 against which, the petitioner filed rectificationapplication. However, the rectification application wasnot considered and came to be rejected to which, thepetitioner filed revision before the PrincipalCommissioner under Section 264 of the Income Tax Act.However without affording an opportunity of hearing, thesaid revision has came to be dismissed by Ext.P5. 2.In response to the writ petition, a counteraffidavit has been filed by the Principal Commissioner ofthe Income Tax Department. Paragraph 5 of the saidcounter affidavit reads as under:- In response to the writ petition, a counter “5.It is submitted that this respondent nowrealises that the rejection of the revision petition citingcertain lapses on the part of the assessee and withoutadverting to the merits of the case is not proper. It wouldappear that the mistake committed by the assessee in choosethe wrong return form and showing the entire contractreceipts under the head 'income from other sources' wouldhave led to the fixation of the gross contract receipts as thetotal income. Whatever may be the reason, the fact remainsthat the entire contract receipts have been treated as thetaxable income of the petitioner. This mistake needs to berectified. This can be done by considering the petitioner'sgrievance again u/s 264 of the IT Act. If the Hon'ble Courtis pleased to set aside the Exhibit-P5 order with a directionto re-do the same after affording the petitioner a properopportunity of being heard, the grievance of the petitionercan be addressed and his correct taxable income can befixed. It is prayed that the Hon'ble Court may be pleased todo so.” Considering the said stand of the respondents, thewrit petition is allowed. Ext.P5 order is set aside. Thematter is remitted back to the file of the first respondentto decide the revision petition of the petitioner inaccordance with the law afresh. The petitioner should beafforded an opportunity of hearing by the first respondent. Let notice of hearing be issued to the petitioner by thePrincipal Commissioner of the Income Tax Department andon receipt of such notice, the petitioner should appear before the Principal Commissioner and make submissions. DCS/01.12.2023 Sd/- DINESH KUMAR SINGH JUDGE APPENDIX PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME IN FORMNO.ITR- V DATED FILED BY THE PETITIONER ALONG WITH COMPUTATION OF INCOME ON 31.03.2018 FOR AY-2017-18 EXHIBIT P1ATRUE COPY OF THE ANNUAL TAX STATEMENT IN FORM 26AS ISSUED BY THE INCOME TAX DEPARTMENT EXHIBIT P2TRUE COPY OF THE INTIMATION ISSUED U/S 143(1) DATED 30.03.2019 ISSUED BY THE 3RDRESPONDENT EXHIBIT P3TRUE COPY OF THE RECTIFICATION ORDER DATED 31.10.2019 ISSUED BY THE 3RD RESPONDENTDATED 31.10.2019 ISSUED BY THE 3RD RESPONDENT the Principal Commissioner and make submissions. DCS/01.12.2023 Sd/- DINESH KUMAR SINGH JUDGE APPENDIX PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE RETURN OF INCOME IN FORMNO.ITR- V DATED FILED BY THE PETITIONER ALONG WITH COMPUTATION OF INCOME ON 31.03.2018 FOR AY-2017-18 EXHIBIT P1ATRUE COPY OF THE ANNUAL TAX STATEMENT IN FORM 26AS ISSUED BY THE INCOME TAX DEPARTMENT EXHIBIT P2TRUE COPY OF THE INTIMATION ISSUED U/S 143(1) DATED 30.03.2019 ISSUED BY THE 3RDRESPONDENT EXHIBIT P3TRUE COPY OF THE RECTIFICATION ORDER DATED 31.10.2019 ISSUED BY THE 3RD RESPONDENTDATED 31.10.2019 ISSUED BY THE 3RD RESPONDENT EXHIBIT P4TRUE COPY OF REVISION APPLICATION DATED 12.03.2020 FILED U/S 264 BY THE PETITIONER BEFORE THE 1ST RESPONDENT EXHIBIT P5TRUE COPY OF THE ORDER DATED 4.03.2021 ISSUED BY THE 1ST RESPONDENT FOR AY-2017-18 U/S 264