Kerala High Court

Anitha Zachariah vs Union Of India on 28 May, 2024

Author: Murali Purushothaman

Bench: Murali Purushothaman

            IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
        THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
  TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                     WP(C) NO. 1437 OF 2021
PETITIONER:

            C.B.M.WARRIER
            WARRIER & WARRIER CHARTERED ACCOUNTANTS,
            KUTHIRAVATTOM, CALICUT - 673 016.

            BY ADVS.
            SRI. ANIL D. NAIR
            SRI. SREEJITH R.NAIR
            SMT. TELMA RAJU
            SRI. SANGEETH JOSEPH JACOB
            SMT. CHRISTINA ANNA PAUL


RESPONDENTS:

    1       UNION OF INDIA, NEW DELHI
            REPRESENTED BY THE SECRETARY TO THE GOVERNMENT OF
            INDIA, FINANCE DEPARTMENT - 110 001.
    2       CENTRAL BOARD OF DIRECT TAXES,
            DEPARTMENT OF REVENUE,
            MINISTRY OF FINANCE, GOVERNMENT OF INDIA,
            NEW DELHI - 110 001.
    3       PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX
            (NFAC),
            NEW DELHI - 110 001.
    4       CHIEF COMMISSIONER OF INCOME TAX (RFAC),
            CHENNAI - 600 001.
    5       COMMISSIONER OF INCOME TAX (APPEAL UNIT),
            KOCHI - 682 018.

            SRI. P.R.AJITH KUMAR - SC
            SRI. T.C KRISHNA



     THIS     WRIT   PETITION    (CIVIL)    HAVING   COME    UP   FOR
ADMISSION    ON   28.05.2024,    ALONG    WITH   W.P(C)     NOS.6074,
6085, 6088 AND 6116 OF 2021, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                 2

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
             THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
       TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                         WP(C) NO. 6074 OF 2021


     PETITIONER:


                ANITHA ZACHARIAH
                2554H KARUKAYIL HOUSE,
                GOLDEN WATERS,
                CHILAVANOOR ROAD,
                ELAMKULAM,
                KOCHI - 682 020.

                BY ADVS.
                SRI. M.GOPIKRISHNAN NAMBIAR
                SRI. K.JOHN MATHAI
                SRI. JOSON MANAVALAN
                SRI. KURYAN THOMAS
                SRI. PAULOSE C. ABRAHAM
                SRI. RAJA KANNAN
                SMT. S.PARVATHI



     RESPONDENTS:


         1      UNION OF INDIA
                REPRESENTED BY ITS REVENUE SECRETARY,
                MINISTRY OF FINANCE,
                NEW DELHI - 110 004.
         2      THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX,
                (NATIONAL FACELESS APPEAL CENTRE),
                NEW DELHI - 110 001.
         3      THE COMMISSIONER OF INCOME TAX (APPEALS)
                NATIONAL FACELESS APPEAL CENTRE,
                KOCHI, ERNAKULAM - 682 018.
         4      THE COMMISSIONER OF INCOME TAX (APPEALS),
                POORNIMA BUILDINGS,
                PANAMPILLY NAGAR,
                KOCHI - 682 036.
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                       3

         5          THE INCOME TAX OFFICER,
                    NON-CORPORATE WARD -1(1),
                    RANGE 1, C.R.BUILDINGS,
                    I.S PRESS ROAD,
                    KOCHI - 682 018.

                    SRI. P.R.AJITH KUMAR - SC
                    SRI. T.C KRISHNA



             THIS    WRIT   PETITION   (CIVIL)   HAVING   COME   UP   FOR
     ADMISSION ON 28.05.2024, ALONG WITH             W.P(C) NOS.1437,
     6085, 6088 AND 6116 OF 2021, THE COURT ON THE SAME DAY
     DELIVERED THE FOLLOWING:
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                 4

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
             THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
       TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                         WP(C) NO. 6085 OF 2021


     PETITIONER:

                ANITHA ZACHARIAH
                2554H KARUKAYIL HOUSE,
                GOLDEN WATERS,
                CHILAVANOOR ROAD,
                ELAMKULAM,
                KOCHI - 682 020.

                BY ADVS.
                SRI. M.GOPIKRISHNAN NAMBIAR
                SRI. K.JOHN MATHAI
                SRI. JOSON MANAVALAN
                SRI. KURYAN THOMAS
                SRI. PAULOSE C. ABRAHAM
                SRI. RAJA KANNAN
                SMT. S.PARVATHI



     RESPONDENTS:


         1      UNION OF INDIA
                REPRESENTED BY ITS REVENUE SECRETARY,
                MINISTRY OF FINANCE,
                NEW DELHI - 110 004.
         2      THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX,
                (NATIONAL FACELESS APPEAL CENTRE),
                NEW DELHI - 110 001.
         3      THE COMMISSIONER OF INCOME TAX (APPEALS)
                NATIONAL FACELESS APPEAL CENTRE,
                KOCHI,
                ERNAKULAM - 682 018.
         4      THE COMMISSIONER OF INCOME TAX
                (APPELAS),
                POORNIMA BUILDINGS,
                PANAMPILLY NAGAR,
                KOCHI - 682 036.
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                       5

         5          THE INCOME TAX OFFICER
                    NON-CORPORATE WARD-1 (1),
                    RANGE 1, C.R. BUILDINGS,
                    I.S. PRESS ROAD,
                    KOCHI - 682 018.

                    SRI. P.R.AJITH KUMAR - SC
                    SRI. T.C KRISHNA



             THIS    WRIT   PETITION   (CIVIL)   HAVING   COME   UP   FOR
     ADMISSION ON 28.05.2024, ALONG WITH             W.P(C) NOS.1437,
     6074, 6085 AND 6116 OF 2021, THE COURT ON THE SAME DAY
     DELIVERED THE FOLLOWING:
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                 6

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
             THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
       TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                         WP(C) NO. 6088 OF 2021


     PETITIONER:



                ANITHA ZACHARIAH
                2554H KARUKAYIL HOUSE,
                GOLDEN WATERS,
                CHILAVANOOR ROAD,
                ELAMKULAM,
                KOCHI - 682 020.

                BY ADVS.
                SRI. M.GOPIKRISHNAN NAMBIAR
                SRI. K.JOHN MATHAI
                SRI. JOSON MANAVALAN
                SRI. KURYAN THOMAS
                SRI. PAULOSE C. ABRAHAM
                SRI. RAJAKANNAN
                SMT. S.PARVATHI



     RESPONDENTS:

         1      UNION OF INDIA
                REPRESENTED BY ITS REVENUE SECRETARY,
                MINISTRY OF FINANCE,
                NEW DELHI - 110 004.
         2      THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX,
                (NATIONAL FACELESS APPEAL CENTRE),
                NOW DELHI - 110 001.
         3      THE COMMISSIONER OF INCOME TAX (APPEALS),
                NATIONAL FACELESS APPEAL CENTRE,
                KOCHI,
                ERNAKULAM - 682 018.
         4      THE COMMISSIONER OF INCOME TAX (APPEALS),
                POORNIMA BUILDINGS,
                PANAMPILLY NAGAR, KOCHI - 682 036.
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                       7

         5          THE INCOME TAX OFFICER,
                    NON-CORPORATE WARD-1 (1),
                    RANGE1, C.R. BUILDINGS,
                    I.S PRESS ROAD,
                    KOCHI - 682 018.

                    SRI. P.R.AJITH KUMAR - SC
                    SRI. T.C KRISHNA



             THIS    WRIT   PETITION   (CIVIL)   HAVING   COME   UP   FOR
     ADMISSION ON 28.05.2024, ALONG WITH             W.P(C) NOS.1437,
     6074, 6085 AND 6116 OF 2021, THE COURT ON THE SAME DAY
     DELIVERED THE FOLLOWING:
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                 8

                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                PRESENT
             THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
       TUESDAY, THE 28TH DAY OF MAY 2024 / 7TH JYAISHTA, 1946
                         WP(C) NO. 6116 OF 2021


     PETITIONER:



                ANITHA ZACHARIAH
                2554H KARUKAYIL HOUSE,
                GOLDEN WATERS,
                CHILAVANOOR ROAD,
                ELAMKULAM,
                KOCHI - 682 020.

                BY ADVS.
                SRI. M.GOPIKRISHNAN NAMBIAR
                SRI. K.JOHN MATHAI
                SRI. JOSON MANAVALAN
                SRI. KURYAN THOMAS
                SRI. PAULOSE C. ABRAHAM
                SRI. RAJA KANNAN
                SMT. S.PARVATHI



     RESPONDENTS:

         1      UNION OF INDIA
                REPRESENTED BY ITS REVENUE SECRETARY,
                MINISTRY OF FINANCE,
                NEW DELHI - 110 004.
         2      THE PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX,
                (NATIONAL FACELESS APPEAL CENTRE),
                NEW DELHI - 110 001.
         3      THE COMMISSIONER OF INCOME TAX (APPEALS),
                NATIONAL FACELESS APPEAL CENTRE,
                KOCHI,
                ERNAKULAM - 682 018.
         4      THE COMMISSIONER OF INCOME TAX (APPEALS),
                POORNIMA BUILDINGS,
                PANAMPILLY NAGAR, KOCHI - 682 036.
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                                       9

         5          THE INCOME TAX OFFICER,
                    NON-CORPORATE WARD-1 (1),
                    RANGE 1, C.R.BUILDINGS,
                    I.S PRESS ROAD,
                    KOCHI - 682 018.

                    SRI. P.R.AJITH KUMAR - SC
                    SRI. T.C KRISHNA



             THIS    WRIT   PETITION   (CIVIL)   HAVING   COME   UP   FOR
     ADMISSION ON 28.05.2024, ALONG WITH             W.P(C) NOS.1437,
     6074, 6085 AND 6088 OF 2021, THE COURT ON THE SAME DAY
     DELIVERED THE FOLLOWING:
 WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

                               10




                             JUDGMENT

These writ petitions are filed to declare that

Ext.P3 amendment to Section 250 of the Income Tax

Act, 1961 (for short, 'the Act') and resultant Ext.P4

scheme as unconstitutional. It is contended that the

Scheme does not contain a provision to give an

opportunity of personal hearing to the appellants and

is therefore against the principles of natural justice

and ultra vires Section 250(2) of the Act.

2. During the pendency of these writ petitions,

the Government of India has brought out Faceless

Appeal Scheme, 2021 (for short, 'the Scheme') as per

Notification No.S.O.5429(E) dated 28.12.2021.

Clause 12(2) and (3) of the Scheme read as follows:-

"12. No personal appearance in the Centres or Units.- (1) xxxxx

(2) The appellant or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submission or present his case before the WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

Commissioner (Appeals), through the National Faceless Appeal Centre, under this Scheme.

(3) The concerned Commissioner (Appeals) shall allow the request for personal hearing and communicate the date and time of hearing to the appellant through the National Faceless Appeal Centre."

As per the amended Scheme, opportunity of personal

hearing through video conferencing has been made

mandatory.

In view of the above amendment, the grievance

of the petitioners raised in the writ petitions does not

survive. Accordingly, these writ petitions are

disposed of with a direction to the appellate authority

to consider and dispose of the appeals filed by the

petitioners in terms of the provisions of the Scheme

issued vide Notification No.S.O.5429(E) dated

28.12.2021.

Sd/-

MURALI PURUSHOTHAMAN JUDGE

SPR WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

APPENDIX OF WP(C) 1437/2021

PETITIONER'S EXHIBITS:-

EXHIBIT P1 TRUE COPY OF THE NOTICE ISSUED BY THE OFFICE OF THE REGULAR COMMISSION OF INCOME TAX, APPEAL, KOCHI, DATED

29.12.2020.

EXHIBIT P2 TRUE COPY OF THE NOTICE ISSUED BY THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEALS CENTRE (NFAC), DELHI DATED 31.12.2020.

EXHIBIT P3 TRUE COPY OF THE NOTIFICATION NO.76/2020(F.NO.370142/33/2020-TPL)/SO32 96(E) DATED 25.09.2020.

EXHIBIT P4 TRUE COPY OF THE NOTIFICATION NO.77/2020(F.NO.370142/33/2020-TPL)/SO32 97(E) DATED 25.09.2020.

EXHIBIT P5 TRUE COPY OF THE NOTIFICATION NO.80/2020(F.NO.279/MISC./66/2014- SO3308(E) DATED 25.09.2020. EXHIBIT P6 TRUE COPY OF THE NOTIFICATION NO.81/2020(F.NO.279/MISC./66/2014- SO3309(E) DATED 25.09.2020.

RESPONDENTS EXHIBITS: NIL.

WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

APPENDIX OF WP(C) 6074/2021

PETITIONER'S EXHIBITS:-

EXHIBIT P1 TRUE COPY OF THE ORDER DATED 22.08.2019 ISSUED BY THE 5TH RESPONDENT.

EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 09.10.2019 FILED BEFORE THE 4TH RESPONDENT. EXHIBIT P3 TRUE COPY OF THE RELEVANT PAGES OF THE FINANCE ACT, 2020 (NO.12 OF 2020) DATED 27.03.2020.

EXHIBIT P4 TRUE COPY OF THE FACELESS APPEAL SCHEME, 2020 DATED 25.09.2020.

EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 05.02.2021 ISSUED UNDER SECTION 250 OF THE INCOME TAX ACT.

EXHIBIT P6 TRUE COPY OF THE RE-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED NIL.

EXHIBIT P7 TRUE COPY OF THE LETTER DATED 01.03.2021 REQUESTING FOR PERSONAL HEARING OF THE APPEAL FILED BEFORE THE 4TH RESPONDENT.

RESPONDENTS EXHIBITS:-

EXHIBIT R5-A NOTIFICATION DATED 28.12.2021 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES ON THE FACELESS APPEAL SCHEME.

WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

APPENDIX OF WP(C) 6085/2021

PETITIONER'S EXHIBITS:-

EXHIBIT P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 19.02.2016 ISSUED BY THE 5TH RESPONDENT.

EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 13.04.2016 FILED BEFORE THE 4TH RESPONDENT.

EXHIBIT P3 TRUE COPY OF THE RELEVANT PAGES OF THE FINANCE ACT, 2020 (NO. 12 OF 2020) DATED 27.03.2020.

EXHIBIT P4 TRUE COPY OF THE FACELESS APPEAL SCHEME 2020 DATED 25.09.2020. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 19.01.2021 ISSUED UNDER SECTION 250 OF THE INCOME TAX ACT.

EXHIBIT P6 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED NIL. EXHIBIT P7 TRUE COPY OF THE LETTER DATED 29.01.2021 REQUESTING FOR PERSONAL HEARING OF THE APPEAL FILED BEFORE THE 4TH RESPONDENT.

RESPONDENTS ANNEXURES:-

ANNEXURE-A CENTRAL BOARD OF DIRECT TAXES NOTIFICATION DATED 28TH DECEMBER 2021 ON THE FACELESS APPEAL SCHEME. WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

APPENDIX OF WP(C) 6088/2021

PETITIONER'S EXHIBITS:-

EXHIBIT P1 TRUE COPY OF THE ORDER DATED 30.4.2020 ISSUED BY THE 5TH RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 27.5.2020 FILED BEFORE THE 4TH RESPONDENT.

EXHIBIT P3 TRUE COPY OF THE RELEVANT PAGES OF THE FINANCE ACT 2020 (NO 12 OF 2020) DATED 27.3.2020.

EXHIBIT P4 TRUE COPY OF THE FACELESS APPEAL SCHEME, 2020 DATED 25.9.2020. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 5.2.2021 ISSUED UNDER SECTION 250 OF THE INCOME TAX ACT.

EXHIBIT P6 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED NIL. EXHIBIT P7 TRUE COPY OF THE LETTER DATED 1.3.2021 REQUESTING FOR PERSONAL HEARING OF THE APPEAL FILED BEFORE THE 4TH RESPONDENT.

RESPONDENTS ANNEXURES:-

ANNEXURE-A NOTIFICATION DATED 28.12.2021 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES ON THE FACELESS APPEAL SCHEME WP(C).Nos.1437, 6074, 6085, 6088 & 6116 OF 2021

APPENDIX OF WP(C) 6116/2021

PETITIONER'S EXHIBITS:-

EXHIBIT P1 ASSESSMENT ORDER DATED 31.7.2017 ISSUED BY THE 5TH RESPONDENT. EXHIBIT P2 TRUE COPY OF THE APPEAL DATED 12.10.2017 FILED BEFORE THE 4TH RESPONDENT.

EXHIBIT P3 TRUE COPY OF THE RELEVANT PAGES OF THE FINANCE ACT 2020 (NO 12 OF 2020) DATED 27.3.2020.

EXHIBIT P4 TRUE COPY OF THE FACELESS APPEAL SCHEME 2020 DATED 25.9.2020. EXHIBIT P5 TRUE COPY OF THE NOTICE DATED 21.1.2021 ISSUED UNDER SECTION 250 OF THE INCOME TAX ACT.

EXHIBIT P6 TRUE COPY OF THE E-PROCEEDINGS RESPONSE ACKNOWLEDGEMENT DATED NIL. EXHIBIT P7 TRUE COPY OF THE LETTER DATED 29.1.2021 REQUESTING FOR PERSONAL HEARING OF THE APPEAL FILED BEFORE THE 4TH RESPONDENT.

RESPONDENTS ANNEXURES:-