Wp(C)/7829/2023 Of Palasseri Pulikkal Muhammed Ali v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH FRIDAY, THE 17 DAY OF NOVEMBER 2023 / 26TH KARTHIKA, 1945WP(C) NO. 7829 OF 2023 PETITIONER/S: PALASSERI PULIKKAL MUHAMMED ALIAGED 62 YEARSS/O MUHAMMED (LATE), RESIDING AT A11A, BENZEER MANZIL, KUTTOOR POST, A.R.NAGAR, MALAPPURAM, PIN -676305 BY ADVS.M.P.SHAMEEM AHAMEDAKHIL PHILIP MANITHOTTIYIL RESPONDENT/S: 1THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -1 KOZHIKODE, 7Q4H+GMG, MANANCHIRA, KOZHIKODE, KERALA, PIN - 6730012THE PRINCIPLE DIRECTOR OF INCOME TAX (INV) KOCHI, X885+X6J, ERNAKULAM, KOCHI, KERALA, PIN - 682020 OTHER PRESENT: SMT.SUSIE B VARGHESE-SCTHIS WRIT PETITION (CIVIL) HAVING COME UP FORADMISSION ON 17.11.2023, THE COURT ON THE SAME DAYDELIVERED THE FOLLOWING: WP(C) NO. 7829 OF 2023 J U D G M E N T The present writ petition has been filed seeking following reliefs: “i) To call for the records leading to theissuance of Ext.Pl, Ext. P2, Ext. P3 and Ext.P4 notices and to issue a Writ of Mandamus orsuch other Writ or direction to the 1[st]Respondent to defer the assessment proceedingsinitiated pursuant to Ext.P1 and Ext.P3 noticesuntil such time all the documents seized fromthe Petitioners business premises are returnedto Petitioner and for a further period of 4months from the date of such return. ii) To issue a writ of mandamus or suchother writ or direction to the 2nd Respondentto complete the investigations against thePetitioner and his related entities and releaseall the seized records in a time bound manner.” 2.The petitioner is engaged in the business of Gold jewellery having manufacturing, wholesaleand retail trade under the brand “Dubai Gold”. Thepetitioner is also an assessee under the provisionsof the Income Tax Act, 1961 (“Act”, for short).The petitioner runs his business through variousfirms, including proprietor firms, partnership firms, limited liability partnerships, privatelimited companies etc. Twelve (12) entities of thepetitioner are mentioned in paragraph No.3 of thewrit petition. 3.A search and seizure operation wasconducted in the business and residential premisesof the petitioner. Computers, documents etc. wereseized from the business and residential premisesof the petitioner and notices, Ext.P1, underSection 153C of the Act for the assessment years2015-16 to 2020-21 were issued on 2.6.2022. Noticeunder Section 142(1) of the Act was issued to thepetitioner on 13.7.2022 in connection with theassessments, asking the petitioner to providedetails relating to various Bank accountsmaintained with A.R.Nagar Service Co-operativeSociety. The petitioner was given final opportunityto file his reply in respect of the said noticesvide Ext.P4 notice dated 17.2.2023. Learned counselfor the petitioner submits that the petitioner iswilling to co-operate with the proceedings and furnish the details asked for vide notice underSection 142(1) of the Act, Ext.P4. However, in theabsence of the relevant documents and information,which are available in the computer system of thepetitioner seized by the Department, it is notpossible for the petitioner to file proper replyand furnish the information as sought for videExt.P4 notice. 4.Learned counsel for the petitioner submitsthat the respondents be directed to provide copiesof the required documents, pen-drives etc. of theinformation stored in the computer system seizedfrom the petitioner and thereafter, the petitionerbe granted at least four weeks time to file replyto Ext.P4 notice and only thereafter theproceedings for adjudication and finalisation ofthe assessment under Section 153B of the Act may bedirected to be commenced. 5.Learned counsel for the petitioner alsosubmits that the petitioner will not challenge thefinal assessment order to be passed, on the ground 4.Learned counsel for the petitioner submitsthat the respondents be directed to provide copiesof the required documents, pen-drives etc. of theinformation stored in the computer system seizedfrom the petitioner and thereafter, the petitionerbe granted at least four weeks time to file replyto Ext.P4 notice and only thereafter theproceedings for adjudication and finalisation ofthe assessment under Section 153B of the Act may bedirected to be commenced. 5.Learned counsel for the petitioner alsosubmits that the petitioner will not challenge thefinal assessment order to be passed, on the ground of limitation, if the petitioner is provided withcopies of required documents and information inpen-drives from the computer system of thepetitioner, which were seized from his premises.Learned counsel for the petitioner submits that thepetitioner will submit an application detailing thedocuments etc. to be provided by the Department onpayment basis. 6.Smt.Susie B.Varghese, learned Senior Standing Counsel for the Income Tax Department,submits that let the petitioner be permitted toapply for required/relevant documents on paymentbasis. If the petitioner applies for copies ofrequired/relevant documents for filing his reply toExt.P4 notice, the same will be provided by theDepartment on payment basis. The petitioner shouldthereafter file his reply to Ext.P4 notice and theDepartment will proceed with the assessmentthereafter, in accordance with law. 7.Considering the said stand and the submissions of the learned counsel for the petitioner as well as the learned Senior StandingCounsel for the Revenue, the present writ petitionis disposed of with direction to the petitioner tomove an application before the Department forsupply of copies of relevant documents within aperiod of ten days from today. If such anapplication is moved, the Department should supplycopies of the relevant documents and pen-drives tothe petitioner within a period of fifteen (15) daysfrom the date of receipt of such application, toenable the petitioner to file proper reply toExt.P4 notice for undertaking further proceedings.After the petitioner is given copies of therelevant documents on charge basis as above, thepetitioner should file his reply to Ext.P4 noticewithin a period of four weeks from the date ofreceipt of copies of the relevant documents fromthe Department. Further proceedings in respect ofExt.P4 notice should commence after four weeks fromthe date of supply of copies of relevant documentsto the petitioner. If the petitioner fails to file an application for supply of copies of relevantdocuments as above, or if the documents areprovided as above and the petitioner fails to filehis reply to Ext.P4 notice within four weeks fromthe date of receipt of copies of relevantdocuments, the Department should proceed with thenotice in Ext.P4, in accordance with law. It ismade clear that if the petitioner files his replywithin a period of four weeks of receipt of copiesof relevant documents, final assessment orderpassed by the Department in the proceedings shallnot be challenged by the petitioner on the groundof limitation. To enable the parties to undertakethe aforesaid exercises, further proceedings inpursuance to Ext.P4 notice shall be kept inabeyance. Interlocutory application, if any, in thepresent writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 7829/2023 PETITIONER EXHIBITS Exhibit- P1COPY OF THE NOTICES DATED 02.06.2022 ISSUEDUNDER SECTION 153 C FOR THE ASSESSMENT YEARS STARTING FROM 2015-16 TO 2020-21UNDER SECTION 153 C FOR THE ASSESSMENT YEARS STARTING FROM 2015-16 TO 2020-21 Exhibit - P2COPY OF THE PRE-ASSESSMENT NOTICE DATED 29.08.2022 ISSUED BY THE 1ST RESPONDENT29.08.2022 ISSUED BY THE 1ST RESPONDENT Interlocutory application, if any, in thepresent writ petition stands dismissed. Sd/- DINESH KUMAR SINGH JUDGE APPENDIX OF WP(C) 7829/2023 PETITIONER EXHIBITS Exhibit- P1COPY OF THE NOTICES DATED 02.06.2022 ISSUEDUNDER SECTION 153 C FOR THE ASSESSMENT YEARS STARTING FROM 2015-16 TO 2020-21UNDER SECTION 153 C FOR THE ASSESSMENT YEARS STARTING FROM 2015-16 TO 2020-21 Exhibit - P2COPY OF THE PRE-ASSESSMENT NOTICE DATED 29.08.2022 ISSUED BY THE 1ST RESPONDENT29.08.2022 ISSUED BY THE 1ST RESPONDENT Exhibit- P3COPY OF THE NOTICES DATED 29.08.2022 ISSUEDUNDER SECTION 153 C OF THE INCOME TAX ACT FOR THE ASSESSMENT YEARS 2011-12, A.Y 2012-13 AND A.Y 2013-14UNDER SECTION 153 C OF THE INCOME TAX ACT FOR THE ASSESSMENT YEARS 2011-12, A.Y 2012-13 AND A.Y 2013-14 Exhibit- P4COPY OF THE NOTICE DATED 17.02.2023 BY THE 1ST RESPONDENT UNDER SECTION 142 (1)1ST RESPONDENT UNDER SECTION 142 (1) Exhibit - P5COPY OF THE PANCHANAMA DATED 23.02.2023 FORTHE DOCUMENTS SEIZED FROM THE PETITIONER'S CORPORATE OFFICE AT, M/S DUBAI GOLD AND DIAMONDSTHE DOCUMENTS SEIZED FROM THE PETITIONER'S CORPORATE OFFICE AT, M/S DUBAI GOLD AND DIAMONDS Exhibit - P6COPY OF THE PANCHANAMA DATED 24.02.2023 FORTHE DOCUMENTS SEIZED FROM THE PETITIONER'S FIRM AT 'FIRDOUS COMPLE' KUNNUMPURAMTHE DOCUMENTS SEIZED FROM THE PETITIONER'S FIRM AT 'FIRDOUS COMPLE' KUNNUMPURAM Exhibit - P7COPY OF THE PANCHANAMA DATED 22.02.2023 FORTHE DOCUMENTS SEIZED FROM FIRDUS GOLD PERINTHALMANNA LLPTHE DOCUMENTS SEIZED FROM FIRDUS GOLD PERINTHALMANNA LLP Exhibit - P8COPY OF THE PANCHANAMA DATED 23.02.2023 FORTHE DOCUMENTS SEIZED FROM FIRDOUS GOLD CHEMMAD PRIVATE LIMITEDTHE DOCUMENTS SEIZED FROM FIRDOUS GOLD CHEMMAD PRIVATE LIMITED Exhibit - P9COPY OF THE PANCHANAMA DATED 24.02.2023 FORTHE DOCUMENTS SEIZED FROM FIRDUS GOLD RAMANATTUKARA LLPTHE DOCUMENTS SEIZED FROM FIRDUS GOLD RAMANATTUKARA LLP Exhibit - P10COPY OF THE PANCHANAMA DATED 24.02.2023 FORTHE DOCUMENTS SEIZED FROM PPM KONDOTTITHE DOCUMENTS SEIZED FROM PPM KONDOTTI Exhibit - P11COPY OF THE LETTER DATED 4 MARCH 2023 GIVENBY THE PETITIONER TO THE 1ST RESPONDENTBY THE PETITIONER TO THE 1ST RESPONDENT