Kerala Minerals And Metals Limited vs The ...
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Kerala High Court

Kerala Minerals And Metals Limited vs The ... on 27 January, 2025

Author: Bechu Kurian Thomas

Bench: Bechu Kurian Thomas

                IN THE HIGH COURT OF KERALA AT ERNAKULAM

                                PRESENT

           THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

        MONDAY, THE 27TH DAY OF JANUARY 2025 / 7TH MAGHA, 1946

                        WP(C) NO. 40532 OF 2024

PETITIONER :

            KERALA MINERALS AND METALS LIMITED,
            SANKARAMANGALAM,CHAVARA, KOLLAM,
            PIN - 691583


            BY ADVS.
            SRI.JOSEPH MARKOS (SR.)
            ABRAHAM JOSEPH MARKOS
            JOHN VITHAYATHIL
            ISAAC THOMAS
            ALEXANDER JOSEPH MARKOS



RESPONDENTS :

    1       THE ADDITIONAL/JOINT/DEPUTY/ASSISTANT
            COMMISSIONER OF INCOME TAX,
            INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE,
            NEW DELHI, PIN - 110 001

    2       DEPUTY COMMISSIONER OF INCOME TAX,
            INCOME TAX OFFICE, CIRCLE-1,
            KOLLAM, PIN - 691 001

    3       COMMISSIONER OF INCOME TAX (APPEALS),
            INCOME TAX DEPARTMENT, NATIONAL FACELESS APPEAL CENTRE,
            NEW DELHI, PIN - 110001

            BY ADVS.
            CHRISTOPHER ABRAHAM
            P.R.AJITH KUMAR(K/000708/1998)




     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
27.01.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 40532 OF 2024

                                    2



                                                           2025:KER:6283
                     BECHU KURIAN THOMAS, J.
                  =-=-=-=-=-=-=-=-=-=-=-=-=-=-
                     W.P.(C) No.40532 of 2024
                  =-=-=-=-=-=-=-=-=-=-=-=-=-=
               Dated this the 27th day of January, 2025


                               JUDGMENT

Petitioner is a wholly owned Government company engaged in

the business of extraction of minerals and manufacture of titanium

dioxide and other products. Petitioner is also an assessee under the

Income Tax Act, 1961 (for short, 'the Act'). For the assessment years

2014-15, 2016-17, 2017-18 and 2018-19, the returns of the petitioner

were selected for scrutiny and the assessments were completed after

disallowing certain claims.

2. Challenging the orders of assessment, petitioner filed

separate appeals before the 3rd respondent as Ext.P2 and Ext.P2(a) to

Ext.P2(c) series. Pursuant to notices issued under Section 250 of the Act,

petitioner filed its respective submissions, wherein a specific request for

personal hearing was sought in each of the appeals. However, without

granting an opportunity of hearing, the appeals were dismissed by Ext.P5

and Ext.P5(a) to Ext.P5(c) orders. In one of the appeals relating to 2016-

17 which is produced as Ext.P5(a), the appeal was dismissed for the

reason that the assessment order had not been produced along with the

memorandum of appeal. Other appeals were dismissed on merits.

Aggrieved by the aforesaid orders of the Appellate Authority, petitioner WP(C) NO. 40532 OF 2024

2025:KER:6283 has approached this Court under Article 226 of the Constitution of India

mainly alleging violation of principle of natural justice.

3. I have heard Sri.Joseph Markos, the learned Senior Counsel,

instructed by Sri.Alexander Joseph Markose, the learned counsel for the

petitioner apart from Sri.Christopher Abraham, the learned Senior

Standing Counsel for the Income Tax Department.

4. The appeal as relating to the year 2016-17 dismissed as per

Ext.P5 (a), reveals that the Appellate Authority noticed that the

assessment order was not produced along with the said appeal.

However, it is not evident that, at the time of filing the appeal, any defect

was noticed by the Appellate Authority regarding the absence of an

assessment order. In fact, if there was any omission to produce the

assessment order along with the appeal, certainly, the Appellate Authority

ought to have noticed the said defect and given an opportunity to the

appellant to produce the copy. Having not done so, it has to be assumed

that the appeal in respect of the assessment year 2016-17 was filed

properly along with the copy of the assessment order. Therefore the

finding of the Appellate Authority that the appeal was filed without an

assessment order cannot be accepted at this belated stage. The order of

the Appellate Authority as relating to 2016-17 has not considered the

issue on merits. Therefore, I am of the view that the petitioner cannot be

put to prejudice at such a belated stage pointing out the absence of the

assessment order especially in the absence of an omission to notice it at WP(C) NO. 40532 OF 2024

2025:KER:6283 the point of first instance. Therefore Ext.P5(a) is liable to be set aside

and a reconsideration ought to be directed.

5. As far as the remaining years are concerned, i.e. 2014-15,

2017-18 and 2018-19, the main contention as pointed out earlier is

relating to the lack of an opportunity of hearing despite request. A

perusal of the aforesaid orders which are produced as Ext.P5, Ext.P5(b)

and Ext.P5(c) reveals that the petitioner was issued with notices

repeatedly under Section 250 of the Act and on most of those occasions,

there was a reply in the form of a submission, wherein a request for grant

of an opportunity of hearing was sought by the petitioner. However, the

learned Senior Standing Counsel for the respondents could not point out

anywhere in the impugned order any reference about any opportunity of

hearing granted. The learned Senior counsel for the petitioner, on the

other hand asserted that, in fact no such opportunity was granted.

6. A glance at the impugned orders reveal that there is no

reference, as rightly pointed out by the learned Senior counsel for the

petitioner, to any opportunity of hearing having been granted.

Undoubtedly, submissions referred to in the impugned orders indicate

only written submissions in contradistinction to actual hearing. In such

circumstances, I am satisfied that the impugned orders Ext.P5, Ext.P5(b)

and Ext.P5(c) have been issued in violation of the principles of natural

justice, entitling the petitioner to invoke the jurisdiction under Article 226

of the Constitution of India.

WP(C) NO. 40532 OF 2024

2025:KER:6283

7. In view of the above discussion, I am satisfied that Ext.P5

series of orders are liable to be interfered with and a fresh consideration

be directed.

In the result, Ext.P5, Ext.P5(a), Ext.P5(b) and Ext.P5(c) orders

shall stand set aside and the 3 rd respondent Appellate Authority shall hear

the matter afresh and pass appropriate orders in accordance with law,

after granting an opportunity of hearing to the petitioner, as expeditiously

as possible, at any rate, within a period of six months from the date of

receipt of a copy of this judgment. In order to avoid technicalities

standing in the way of such consideration, petitioner shall produce a copy

of the assessment order relating to the year 2016-17, along with the copy

of this judgment, without delay.

The writ petition is allowed as above.

Sd/-

BECHU KURIAN THOMAS, JUDGE

RKM WP(C) NO. 40532 OF 2024

2025:KER:6283 APPENDIX OF WP(C) 40532/2024

PETITIONER'S EXHIBITS :

Exhibit P1 TRUE COPY OF THE ASSESSMENT ORDER DATED 30.12.2016 FOR ASSESSMENT YEAR 2014-15.

Exhibit P1(a) TRUE COPY OF THE ASSESSMENT ORDER DATED 27.12.2018 FOR ASSESSMENT YEAR 2016-17

Exhibit P1(b) TRUE COPY OF THE ASSESSMENT ORDER DATED 14.12.2019 FOR ASSESSMENT YEAR 2017-18

Exhibit P1(c) TRUE COPY OF THE ASSESSMENT ORDER DATED 06.04.2021 FOR ASSESSMENT YEAR 2018-19

Exhibit P2 TRUE COPY OF APPEAL MEMORANDUM IN FORM NO.35 DATED 27.01.2017 FOR ASSESSMENT YEAR 2014-15 FILED BY THE PETITIONER BEFORE THE CIT (APPEALS) NOW THE 3RD RESPONDENT.

Exhibit P2(a) TRUE COPY OF APPEAL MEMORANDUM IN FORM NO.35 DATED 25.01.2019 FOR ASSESSMENT YEAR 2016-17 FILED BY THE PETITIONER BEFORE THE CIT (APPEALS) NOW THE 3RD RESPONDENT.

Exhibit P2(b) TRUE COPY OF APPEAL MEMORANDUM IN FORM NO.35 DATED 13.01.2020 FOR ASSESSMENT YEAR 2017-18 FILED BY THE PETITIONER BEFORE THE CIT (APPEALS) NOW THE 3RD RESPONDENT.

Exhibit P2(c) TRUE COPY OF APPEAL MEMORANDUM IN FORM NO.35 DATED 07.05.2021 FOR ASSESSMENT YEAR 2018-19 FILED BY THE PETITIONER BEFORE THE CIT (APPEALS) NOW THE 3RD RESPONDENT.

Exhibit P3 TRUE COPY OF THE NOTICE DATED 12.04.2022 ISSUED UNDER SECTION 250 FOR ASSESSMENT YEAR 2014-15

Exhibit P3(a) TRUE COPY OF THE NOTICE DATED 12.04.2022 ISSUED UNDER SECTION 250 FOR ASSESSMENT YEAR 2016-17.

Exhibit P3(b) TRUE COPY OF THE NOTICE DATED 12.04.2022 WP(C) NO. 40532 OF 2024

2025:KER:6283 ISSUED UNDER SECTION 250 FOR ASSESSMENT YEAR 2017-18.

Exhibit P3(c) TRUE COPY OF THE NOTICE DATED 14.10.2022 ISSUED UNDER SECTION 250 FOR ASSESSMENT YEAR 2018-19.

Exhibit P4 TRUE COPY OF THE WRITTEN SUBMISSIONS DATED 12.04.2022 FOR ASSESSMENT YEAR 2014-15.

Exhibit P4(a) TRUE COPY OF THE WRITTEN SUBMISSIONS DATED 31.05.2022 FOR ASSESSMENT YEAR 2016-17.

Exhibit P4(b) TRUE COPY OF THE WRITTEN SUBMISSIONS DATED 29.08.2022 FOR ASSESSMENT YEAR 2017-18.

Exhibit P4(c) TRUE COPY OF THE WRITTEN SUBMISSIONS DATED 10.11.2022 FOR ASSESSMENT YEAR 2018-19.

Exhibit P5 TRUE COPY OF THE ORDER OF THE 3RD RESPONDENT DATED 19.09.2024 FOR ASSESSMENT YEAR 2014-15.

Exhibit P5(a) TRUE COPY OF THE ORDER OF THE 3RD RESPONDENT DATED 19.09.2024 FOR ASSESSMENT YEAR 2016-17.

Exhibit P5(b) TRUE COPY OF THE ORDER OF THE 3RD RESPONDENT DATED 19.09.2024 FOR ASSESSMENT YEAR 2017-18.

Exhibit P5(c) TRUE COPY OF THE ORDER OF THE 3RD RESPONDENT DATED 19.09.2024 FOR ASSESSMENT YEAR 2018-19.

Exhibit P6 TRUE COPY OF THE JUDGMENT DATED 07.06.2022 IN W.P.(C) NO.1734 OF 2022 PASSED BY THIS HONOURABLE COURT.