Aranmula Chit Funds Pvt. Ltd. Vs Deputy Commissioner of State Tax (Intelligence) (Kerala High Court)
The Kerala High Court considered a writ petition challenging an order issued by the Deputy Commissioner of State Tax (Intelligence) covering multiple financial years from 2017-18 to 2023-24. The petitioner contended that the order was based on a composite show cause notice issued for several assessment years and that such a course was legally unsustainable. Reliance was placed on earlier decisions of the Court which held that issuance of a composite notice for multiple assessment years is impermissible.
After hearing both sides, the Court found merit in the petitioner’s contention. It noted that the Division Bench, in the decisions relied upon by the petitioner, had already held that composite notices covering multiple assessment years were not legally sustainable.
In light of those principles, the Court interfered with the impugned order and quashed it. The respondents were granted liberty to issue separate notices for the relevant assessment years. The Court further directed that, while computing the limitation period for initiating fresh proceedings, the period from the date of the original show cause notice until receipt of the certified copy of the judgment would be excluded. All other contentions of the parties were left open.
