Kerala High Court
T.K.Salim vs The Union Of India on 5 April, 2024
Author: Amit Rawal
Bench: Amit Rawal
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
&
THE HONOURABLE MR. JUSTICE EASWARAN S.
Friday, the 5th day of April 2024 / 16th Chaithra, 1946
WA NO. 484 OF 2024
AGAINST JUDGMENT DATED 15/02/2024 IN WP(C) 14875/2022 OF THIS COURT
APPELLANT(S)/PETITIONER:
1. T.K.SALIM,AGED 65 YEARS,1 GREENLAND CONDIMENTS, XIX/18D, KAREYELI
VALLAM ROAD, PERUMBAVOOR, ERNAKULAM , PIN - 683542
BY SENIOR ADVOCATE SRI.E.K.NANDAKUMAR AND ADVS.M/S. RAJA KANNAN,
M.GOPIKRISHNAN NAMBIAR, K.JOHN MATHAI, JOSON MANAVALAN, KURYAN THOMAS &
PAULOSE C. ABRAHAM
RESPONDENT(S)/RESPONDENT:
1. THE UNION OF INDIA REPRESENTED BY ITS REVENUE SECRETARY, MINISTRY OF
FINANCE, NEW DELHI , PIN - 110004
AND 2 OTHERS.
BY ADV.NAVANEETH N.NATH AND ADV.SUSIE B.VARGHESE FOR R1 AND R2
Prayer for interim relief in the Writ Appeal stating that in the
circumstances stated in the appeal memorandum, the High Court be pleased
to issue an ad-interim order
(i) staying the operation of the Judgment dated 15.02.2024 in
W.P.(c). No. 14875 of 2022; And
(ii) staying all further proceedings pursuant to and arising from
the pursuant to Ext.-P9 order, and Ext.-P10 penalty notice issued by the
3rd respondent under the provisions of the Income Tax Act, 1961, pending
disposal of this Writ Appeal.
This Writ Appeal again coming on for orders on 05/04/2024 upon
perusing the appeal memorandum and this Court's order dated 04/04/2024,
the court on the same day passed the following:
AMIT RAWAL & EASWARAN S., JJ.
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W.A. Nos. 484 & 485 of 2024
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Dated this the 5th day of April, 2024
ORDER
AMIT RAWAL, J.
1. Inter alia contends that the assessment for
the year 2013-2014 and 2014-2015 was submitted in a
proper format and was subject to the assessment in the
year 2016 after giving opportunity and holding the
proceedings of scrutiny. The Assessing Officer almost
close to the end of six years, later than four years, as
per the provisions of Sections 147 read with 149 of the
Income Tax Act, 1961 (hereinafter referred to as 'the
Act', for short) caused notice upon the assessee of
escape assessment on the premise that the assessee
had not truly and fully disclosed the particulars. The
said notices were duly replied and even reliefs were
also sought resulting into impugned assessment.
2. Though the assessment orders were
WA Nos. 484 & 485 of 2024
assailable before an appellate authority as per the
provisions of Section 254 of the Act, but instead,
were challenged by invoking extra ordinary writ
jurisdiction of this Court under Article 226 of the
Constitution of India on the basis of lack of
jurisdiction. Learned Single Bench negated the
arguments of the appellant-petitioner and dismissed
the writ petitions.
3. Mr.Nandakumar E.K., learned Senior
Counsel assisted by Adv.Raja Kannan submitted that
the income shown in the format, containing the profit
and loss account on the basis of the books of account
and record, was duly assessed in 2016 in respect of
both the aforementioned assessment years. No doubt,
in one of the column of any income from the
investment made for payment of shares, in the absence
of dividend, it was shown to be 'Nil'. The provisions of
Section 14A of the Act remained in force that all the
WA Nos. 484 & 485 of 2024
six(6) years except for an explanation caused in March
2024. In such circumstances, the assessee could not
have been burdened on an allegation of not fully and
truly disclosing the particulars rather it was the
mistake on behalf of the Assessing Officers which
could not be rectified under the garb of the escape
assessment under Sections 147 and 149 of the Act.
4. In support of the contention relied upon the
Constitution Bench judgment of Supreme Court in
Parashuram Pottery Works Co.Ltd. Vs. Income
Tax Officer [(1977) 106 ITR 0001] and also in
M.M.Aqua Technologies Limited V. CIT, Delhi
[(2021) 19SCC 816]. It was further contended that
for the remaining assessment years 2015-2016, 2017-
2018 the said disclosure of the income has been duly
accepted. All these factors were not noticed while
dismissing the writ petitions.
5. Issue notice before admission. Further
WA Nos. 484 & 485 of 2024
additions and proceedings made on the basis of the
assessment order are ordered to be kept in abeyance.
Post on 22.07.2024.
Sd/-
AMIT RAWAL
JUDGE
Sd/-
EASWARAN S.
JUDGE
vv
05-04-2024 /True Copy/ Assistant Registrar
