Kerala HC Directs Reinstatement of Appeal, Grants Assessee One Week to Cure Defects

Arun Vijayan Pillai Vijai Vs Income Tax Officer Income Tax Department (Kerala High Court)

In the case of Arun Vijayan Pillai Vijai Vs Income Tax Officer, the Kerala High Court addressed the dismissal of the petitioner’s appeal by the First Appellate Authority under the Income Tax Act, 1961. The dismissal occurred due to the petitioner’s failure to cure defects pointed out by the Appellate Authority.

The petitioner contended that he could not notice the communication about the defects and sought a chance to rectify the issues. After hearing both parties, the court set aside the dismissal order (Ext.P7) and granted the petitioner one week from the date of receiving a certified copy of the judgment to cure the defects. If the defects are cured within the specified time, the appeal will be restored and considered on merits. If not, the appeal will stand dismissed as per the original decision.

Additionally, the court suspended the penalty proceedings (Ext.P8) until the appeal is decided by the Appellate Authority, provided the petitioner addresses the defects within the given timeframe. The court did not comment on the merits of the appeal, leaving it to the Appellate Authority to decide the matter according to law.

FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT

The petitioner has approached this court challenging Ext.P7 order of the First Appellate Authority under the Income Tax Act, 1961 dismissing the appeal filed by the petitioner owing to the fact that the petitioner had not cured certain defects pointed out by the Appellate Authority.

2. It is the submission of the learned counsel for the petitioner that the communication intimating the defects could not be noticed by the petitioner and it is on this account the petitioner could not cure the defects pointed out by the Appellate Authority. It is submitted that the petitioner may be given one opportunity to cure the defects and have the appeal considered on merits by the Appellate Authority.

3. Heard the learned Standing Counsel appearing for the respondents also.

4. Having heard the learned counsel for the petitioner, learned Standing Counsel appearing for the Income Tax Department, I am of the view that since the petitioner before this court is seeking a limited relief, this writ petition can be disposed of setting aside Ext.P7 and directing that if the petitioner cures the defects pointed out by the Appellate Authority within a period of one week from the date of receipt of a certified copy of this judgment, appeal will stand restored to the file and shall be disposed of on merits by the Appellate Authority. If the petitioner does not cure the defects within one week (as above) the appeal will stand dismissed as already directed by the Appellate Authority. I make it clear that I have not expressed any opinion on the merits of the matter and it is open to the Appellate Authority to pass orders on the appeal in accordance with the law after affording an opportunity of hearing to the petitioner, provided the defects are cured within the period specified above. Ext.P8 proceedings for imposition of penalty shall remain suspended till the appeal is decided by the Appellate Authority and if the petitioner cures all the defects within the time specified above.