Mammed Komban Vs National Faceless Assessment Center (Kerala High Court)
In a recent ruling, the Kerala High Court addressed a crucial issue regarding income tax assessments under Section 147 of the Income Tax Act, 1961. The case involved Mammed Komban challenging a final assessment order issued without considering his response, alleging a breach of natural justice principles.
Mammed Komban, the petitioner, filed a writ petition challenging the final assessment order issued by the National Faceless Assessment Center under Section 147 read with Sections 144 and 144B of the Income Tax Act. The petitioner argued that despite submitting a response to the draft assessment order, the final assessment order did not take into account his objections.
During the hearing, the petitioner’s counsel highlighted that final assessment order had penal consequences for the petitioner but failed to consider response, which violated the principles of natural justice. The court examined the timelines and submissions, noting that while the respondents argued the response was late, the petitioner claimed insufficient time was provided for submission.
Upon review, the Kerala High Court found merit in the petitioner’s argument. It ruled that the final assessment order, was issued in contravention of the principles of natural justice since it did not consider response to the draft assessment order, which contained substantial objections from the petitioner. Consequently, the court set aside final assessment order.
