M.J. George Vs Assessment Unit (Kerala High Court)
The petitioners, who are the legal heirs of the deceased assessee, challenge Ext.P6, a penalty order issued under Section 271(1)(c) of the Income Tax Act for the assessment year 2006-07. The writ petition was initially filed by the assessee, who later passed away, and his legal representatives were impleaded to continue the proceedings.
The assessee filed his return on 30.10.2006 declaring income of ₹63,420. The assessment was taken up for scrutiny and completed under Section 143(3), resulting in an addition of ₹9,68,37,905 under the head “Long Term Capital Gains,” relating to the sale of 5.21 acres of land in 2006. The assessee appealed, and the first appellate authority allowed the appeal. The Department then filed an appeal before the Income Tax Appellate Tribunal, which set aside the first appellate order and remanded the matter to the Assessing Officer. The Department challenged the remand order before the High Court in ITA No. 117/2013, and the High Court directed the Tribunal to reconsider the appeal on merits. However, prior to this judgment, the Assessing Officer had issued a revised assessment order dated 20.03.2014 based on the Tribunal’s remand.
During this period, Ext.P2 notice was issued asking the assessee to appear on 25.04.2014 and show cause why penalty under Section 271(1)(c) should not be imposed. Later, Ext.P3 intimation dated 28.05.2024 was issued with reference to a show cause notice dated 31.12.2008. The assessee responded stating that the 31.12.2008 notice had not been uploaded along with the assessment order and requested a copy for proper reply.
