Case Law Details
Aneesh Vs Union of India (Kerala High Court)
Introduction: The Kerala High Court, in the case of Aneesh vs Union of India, recently rendered a judgment challenging the validity of an Income Tax assessment order dated 31.03.2022. The petitioner, who failed to file the return for the assessment year 2017-2018, faced scrutiny for receiving Rs. 1,42,48,884/- from M/s Smart Way India Enterprises LLP during the financial year 2016-2017. The court’s focus on the adequacy of response time becomes pivotal in this context.
Detailed Analysis: The petitioner’s case was reopened under Section 147 of the Income Tax Act, with a notice under Section 148 issued on 28.03.2021. Despite several notices, the petitioner did not respond until a final notice on 29.03.2022. Astonishingly, the petitioner was granted only one day, until 30.03.2022, to respond to the proposed additions to the income, a duration deemed insufficient by the court.
The court, while addressing other grounds, found no substance to challenge the assessment order’s validity, except for the violation of natural justice principles due to the inadequate response time. The judgment emphasized that the 24-hour period granted to the petitioner was unreasonable, leading to the allowance of the writ petition.
The consequences of this decision involve the setting aside of the assessment order and a remand of the matter to the National Faceless Assessment Centre, Delhi. The court directs the activation of a link for the petitioner to file a reply within seven days. It explicitly states that no further opportunity will be provided. The National Faceless Assessment Centre is then instructed to finalize the assessment under Section 147 r/w Section 144 of the IT Act.
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