Wp(C)/869/2019 Of Afeef Cashew Company v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE TUESDAY ,THE 19TH DAY OF MARCH 2019 / 28TH PHALGUNA, 1940WP(C).No. 869 of 2019 PETITIONER: AFEEF CASHEW COMPANYVP IX 415 C VP IX/415 C, THATTAMALA - 691 020, KERALA REPRESENTED BY ITS MANAGING PARTNER.BY ADV. SMT.NISHA JOHN RESPONDENTS: THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 869 of 2019 ..2.. JUDGMENT The writ petitioner is an assessee of theIncome Tax Department. They challenge Ext.P4assessment order. The Petitioner's case is that the assessment order has been passed without following due procedure. Therefore, the petitioner submitted that natural justice has been denied. 2.As seen from the impugned proceedingsthere was no response on the side of thepetitioner. The petitioner was communicatedabout the proposed assessment, on account ofdifference in the draw back claimed by thepetitioner. It is to be noted that in terms ofSec.143(2) of the Income Tax Act, the assessmentproceedings can be concluded in e-proceedings.As seen from Ext.R(b), the petitioner wascommunicated. The petitioner's further case is WP(C).No. 869 of 2019 ..3.. that this communication was placed in spam folderand the petitioner could trace out only after thepassing of the assessment order. 3.As seen from the proceedings, though objection was solicited from the petitioner,there was no response. In the absence ofresponse, the assessment was concluded. It is tobe noted that after the issuance of notice, nofurther hearing was offered to the petitioner.Petitioner has also a case that their E.mail hasbeen changed subsequently. If the E.mail hadbeen changed, it should have be informed to theIncome Tax Officer. As seen from the impugnedorder, it was passed noting that the petitionerclaimed duty draw back for Rs.1,07,33,846/- andthey admitted only Rs.68,33,568/- and there wasno explanation in regard to the differences. 4.Taking note of the above, I am of the ..4.. view that the petitioner should be given anopportunity to explain the differences. Thoughthis Court could have relegated the petitioner tomove an appeal, it will serve no purpose in theabsence of explanation being furnished by thepetitioner. However, this court is of the viewthat cost of Rs.25,000/- shall be imposed on thepetitioner. The petitioner shall pay the costsof Rs.25,000/- within three weeks. Petitionershall appear before the assessing authority on05.04.2019, and thereafter raise objections, theproceedings shall be concluded within a furtherperiod of one month. The Writ Petition is disposed as above. Sd/- A.MUHAMED MUSTAQUE JUDGE WP(C).No. 869 of 2019 ..5.. APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1TRUE COPY OF THE NOTICE UNDER SECTION 143 (2) DATED 18/09/2017 ISSUED BY THE1ST RESPONDENT.143 (2) DATED 18/09/2017 ISSUED BY THE1ST RESPONDENT. EXHIBIT P2TRUE COPY OF THE NOTICE DATED 04/05/2018 ISSUED U/S.142(1) BY THE 1ST RESPONDENT.04/05/2018 ISSUED U/S.142(1) BY THE 1ST RESPONDENT. EXHIBIT P3TRUE COPY OF THE REPLY DATED 15/05/2018 GIVEN BY PETITIONER TO EXT.P2 NOTICE.15/05/2018 GIVEN BY PETITIONER TO EXT.P2 NOTICE. EXHIBIT P4TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH DEMAND NOTICE DATED 17/12/2018.ALONG WITH DEMAND NOTICE DATED 17/12/2018. EXHIBIT P5TRUE COPY OF NOTICE UNDER 274 R/2 271(1) (C).271(1) (C). EXHIBIT P5 ATRUE COPY OF NOTICE UNDER SECTION 274 R/W 271 (B).R/W 271 (B). EXHIBIT P5 BTRUE COPY OF NOTICE UNDER SECTION 274 R/W 271 F.R/W 271 F. EXHIBIT P6TRUE COPY OF THE DOCUMENT SHOWING THE MAIL ID AS GIVEN IN THE INCOME TAX RETURN FILED.MAIL ID AS GIVEN IN THE INCOME TAX RETURN FILED. EXHIBIT P7TRUE COPY OF THE MAIL DATED 31/05/2018.31/05/2018. EXHIBIT P3TRUE COPY OF THE REPLY DATED 15/05/2018 GIVEN BY PETITIONER TO EXT.P2 NOTICE.15/05/2018 GIVEN BY PETITIONER TO EXT.P2 NOTICE. EXHIBIT P4TRUE COPY OF THE ASSESSMENT ORDER ALONG WITH DEMAND NOTICE DATED 17/12/2018.ALONG WITH DEMAND NOTICE DATED 17/12/2018. EXHIBIT P5TRUE COPY OF NOTICE UNDER 274 R/2 271(1) (C).271(1) (C). EXHIBIT P5 ATRUE COPY OF NOTICE UNDER SECTION 274 R/W 271 (B).R/W 271 (B). EXHIBIT P5 BTRUE COPY OF NOTICE UNDER SECTION 274 R/W 271 F.R/W 271 F. EXHIBIT P6TRUE COPY OF THE DOCUMENT SHOWING THE MAIL ID AS GIVEN IN THE INCOME TAX RETURN FILED.MAIL ID AS GIVEN IN THE INCOME TAX RETURN FILED. EXHIBIT P7TRUE COPY OF THE MAIL DATED 31/05/2018.31/05/2018. EXHIBIT P8TRUE COPY OF THE MAIL DATED 04/12/2018.04/12/2018. ..6.. RESPONDENTS EXHIBITS EXHIBIT R(a) TRUE COPY OF THE RETURN OF INCOME FOR THE AY 2016-17 EXHIBIT R(b) TRUE COPY OF LETTER DATED 4-12-2018 SENT IN THE EMAIL ID FURNISHED IN THE RETURN OF INCOME