Case Law Details
Padinjarekara Agencies (P) Ltd. Vs CIT (Kerala High Court)
Procedure under Section 143(2) is intended to ensure that an adverse order is passed against the assessee only after affording the assessee a proper opportunity. Therefore, the question to be considered is whether the assessee in this case had such an opportunity. It is in this context, the notices that were issued to the assessee assumes importance. Reading of the reasons recorded and communicated to the assessee, Annexure E notice posting the case, and Annexure I notice, show that the assessee was put on notice the inadmissibility of the reduction from the total income made by it and the assessee by its Annexure C objections, F reply and the reply filed by it to Annexure I notice had justified the deduction made by it. Further before Annexure K assessment order was passed, the assessee was afforded an opportunity of hearing also. Evidently, therefore, the assessee had ample notice of the case it had to answer and the assessee availed of those opportunities by answering the case against it. In such a situation, we are not prepared to think that there was absence of notice under Section 143(2) or that any prejudice was caused to the assessee in defending the case against it. We are not, therefore, prepared to think that the assessment order is invalid on the ground contended by the assessee.
FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS:-
In this appeal, the assessee calls in question the order passed by the Income Tax Appellate Tribunal, Cochin Bench in I.T.A.No.375/14 for the assessment year 2005-2006.
2. The assessee is a company engaged in the business of manufacture and sale of Centrifuged Latex. The assessment for the year 2005-2006 was completed under Section 143(1) of the Income Tax Act, 1961 and that was reopened under Section 148 of the Act on the ground that in computing the net profit under Section 115 JB, Rs.81,47,859/- was reduced in the agricultural income. According to the Assessing Officer, Rs.81,47,859/- represented as unrepresented liability and, therefore, could not have been reduced. Overruling the objections of the assessee, assessment order was passed under Section 148, a copy of which is Annexure K. This order was confirmed by the Commissioner of Income Tax (Appeals) whose order is Annexure L. The assessee carried the matter in appeal to the Tribunal and the appeal was dismissed as per Annexure O order. It is in these circumstances, the assessee has filed this appeal before this court.
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