Kerala High Court
Sreeja Jagathamma Karunakaran vs The Income Tax Officer on 5 September, 2024
Author: P Gopinath
Bench: P Gopinath
2024:KER:67569
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE GOPINATH P.
THURSDAY, THE 5TH DAY OF SEPTEMBER 2024 / 14TH BHADRA, 1946
WP(C) NO. 22294 OF 2024
PETITIONER:
SREEJA JAGATHAMMA KARUNAKARAN,
AGED 50 YEARS,
D/O.KARUNAKARAN, KALAYIL VEEDU, IVERKALA EAST, PUTHOOR
VIA, KOLLAM, KERALA, PIN - 691 507.
BY ADVS.
SERGI JOSEPH THOMAS
S.AJAY KUMAR
RESPONDENTS:
1 THE INCOME TAX OFFICER,
WARD 2, OFFICE OF THE INCOME TAX OFFICER, AAYAKAR
BHAVAN, NEAR KARBALA JUNCTION, RAILWAY STATION ROAD,
KOLLAM, KERALA, PIN - 691 001.
2 *THE PRINCIPAL COMMISSIONER OF INCOME TAX,
I.S. PRESS ROAD, C R BUILDING, KACHERIPADY, KOCHI,
PIN - 682 018.
*ADDRESS OF R2 IS CORRECTED AS
"THE PRRINCIPAL COMMISSIONER OF INCOME TAX,
AAYAKAR BHAVAN, PEROORKADA ROAD, KOWDIAR,
THIRUVANANTHAPURAM, KERALA - 695 003.
AS PER ORDER DATED 05-07-2024 IN IA 1/24 IN WPC
22294/2024.
BY ADVS.
G.KEERTHIVAS
P.G.JAYASHANKAR
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON
05.09.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 22294 OF 2024
2
2024:KER:67569
JUDGMENT
This writ petition has been filed challenging Ext.P3 order
issued under Section 148A of the Income Tax Act, 1961 (hereinafter
referred to as 'the 1961 Act'). The short ground raised is that Ext.P3
was issued in violation of principles of natural justice. It is the case of
the petitioner that after issuing Ext.P1 show cause notice, the matter
was listed for personal hearing on 06.03.2024, as can be seen from
page No.2 of Ext.P1. It is submitted that on 06.03.2024, the petitioner
submitted Ext.P2 request, which is acknowledged as can be seen from
the endorsement on Ext.P2. It is pointed out that in Ext.P2, the
petitioner had sought for an adjournment for reasons mentioned in
Ext.P2. Thereafter, without issuing any further notice, Ext.P3 order
was issued on 27.03.2024 in violation of principles of natural justice,
is the submission.
2. The learned Standing Counsel attempts to justify
the action of the Officer in proceeding to issue Ext.P3 order by stating
that even after submitting a request for adjournment on 06.03.2024,
the petitioner did not file any reply and therefore, the Officer was
compelled to pass an order on 27.03.2024. It is submitted that since
Ext.P3 order is only an order under Section 148A of the 1961 Act, the
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petitioner will get all opportunity to contest the matter on merits in
the reassessment proceedings and therefore, no prejudice has been
caused to the petitioner.
3. Having heard the learned counsel for the petitioner
and the learned Standing Counsel appearing for the respondent
Department, I am of the view that the petitioner is entitled to succeed.
After amendment of the provisions of the 1961 Act with effect from
01.04.2021, an assessee is entitled to a notice prior to the issuance of a
notice under Section 148 of the 1961 Act in respect of a proceeding
relating to income escaping assessment. The contention that no
prejudice has been caused to the petitioner cannot therefore be
accepted. Coming to the contention that Ext.P3 is issued in violation
of natural justice, it is seen from Ext.P1 that the petitioner was given
an opportunity of hearing on 06.03.2024, on which date the
petitioner submitted Ext.P2 request, which was duly acknowledged by
the Officer. Thereafter without issuing any further notice and without
giving any further opportunity of hearing, Ext.P3 order was passed by
the Officer. This in my view is a clear violation of the principles of
natural justice.
In that view of the matter, this writ petition is allowed.
Ext.P3 is quashed. Ext.P1 show cause notice shall be adjudicated
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afresh, after affording an opportunity of hearing to the petitioner,
within a period of two months from the date of receipt of a certified
copy of this judgment. As a result, Ext.P4 notice issued under Section
148 is also quashed.
The writ petition will stand disposed of as above.
Sd/-
GOPINATH P.
JUDGE
DK
WP(C) NO. 22294 OF 2024
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APPENDIX OF WP(C) 22294/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE NO.
ITBA/AST/F/148A(SCN)/2023-
24/1061391297(1) DATED 23/02/2024 ISSUED
UNDER CLAUSE (B) OF SECTION 148A OF THE
INCOME-TAX ACT,1961 BY THE 1ST
RESPONDENT
Exhibit P2 TRUE COPY OF THE REQUEST FOR ADJOURNMENT
DATED 06/03/2024 SUBMITTED BY THE
PETITIONER BEFORE THE 1ST RESPONDENT
Exhibit P3 TRUE COPY OF THE ORDER NO. DIN
ITBA/AST/F/148A/2023-24/1063452674(1)
DATED 27/03/2024 ISSUED UNDER CLAUSE (D)
OF SECTION 148A OF THE INCOME-TAX
ACT,1961 BY THE 1ST RESPONDENT
Exhibit P4 TRUE COPY OF THE NOTICE NO:
ITBA/AST/S/148_1/2023-24/1063542514(1)
DATED 28/03/2024 ISSUED UNDER SECTION
148 OF THE INCOME-TAX ACT,1961 BY THE
1ST RESPONDENT
