Case Law Details
Bemmanakkodan Reghu Vs State Tax Officer (Kerala High Court)
The writ petition challenged Ext.P1 consolidated Show Cause Notice issued by the second respondent and Ext.P4 Order-in-Original issued by the first respondent for multiple financial years, namely 2018-19 to 2022-23. The petitioner contended that the issuance of a composite notice covering several assessment years was legally unsustainable. Reliance was placed on the decisions of the Kerala High Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] and Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467], wherein such composite proceedings had been held to be impermissible.
After hearing both parties, the Court found merit in the petitioner’s submissions and observed that the Division Bench had already settled the issue in the above judgments. Applying those principles, the Court held that interference was warranted.
Accordingly, the writ petition was disposed of by quashing Ext.P1 Show Cause Notice and Ext.P4 Order-in-Original. The respondents were granted liberty to issue separate notices for the relevant assessment years. The Court further directed that the period from the date of Ext.P1 notice until receipt of the certified copy of the judgment shall be excluded while computing limitation for initiating fresh proceedings. All other contentions were left open.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
This writ petition is submitted by the petitioner challenging Ext.P1 consolidated Show Cause Notice which was issued by the 2nd respondent and Ext.P4 Order in original which were issued by the 1st respondent for multiple financial years namely, 2018-19 to 2022-23. The main challenge raised against the sustainability of the same is that, issuance of a composite notice for multiple assessment years was found to be not legally sustainable as per the decision rendered by this Court in Joint Commissioner (Intelligence & Enforcement) v. M/s. Lakshmi Mobiles Accessories [2025 KHC OnLine 149] and Tharayil Medicals (M/s.), Thrissur v. Deputy Commissioner, Thrissur [2025 KHC OnLine 467]
2. After hearing the learned counsel for the petitioner and the learned Government Pleader for the respondents, I find merit in the said submission, in view of the fact that, such a finding was indeed entered into by the Division Bench of this Court in the decisions referred to above.
In such circumstances, in the light of the principles laid down by this Court in the above referred judgments, an interference is required. Accordingly, this writ petition is disposed of, quashing Exts.P1 and P4 granting liberty to the respondent to issue separate notices for the relevant assessment years. However, the period from the date of Ext.P1 notice, till the date of receipt of the certified copy of the judgment, shall be excluded while computing the period of limitation for initiating fresh proceeding. All the other contentions of the parties are left open.
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