Case Law Details
Ashley Cherian Vs Additional/Joint/Deputy/ACIT/ITO (Kerala High Court)
Introduction: Ashley Cherian, an assessee under the Income Tax Act, filed a writ petition challenging assessment and penalty orders under section 271AAC. Holding agricultural properties in Idukki District, Cherian declared a ‘nil’ income for the assessment year 2020-2021. However, the case was scrutinized under CASS, leading to the issuance of notices under Sections 143 and 142(1) of the Act. Subsequently, assessment and penalty orders demanding significant sums were passed against Cherian, prompting the filing of writ petitions (WP(C) No. 2136/2023 and WP(C) No.18139/2023) in the Kerala High Court.
Detailed Analysis: The Kerala High Court, upon reviewing the assessment and penalty orders, observed that they were issued in compliance with all statutory formalities. Despite ample opportunities provided to Cherian to present necessary documents supporting his contentions, he failed to produce them. Notably, both orders were deemed appealable under the law.
The court emphasized that disputed factual matters cannot be resolved via writ petitions, urging Cherian to pursue the statutory remedy of appeal instead. By resorting directly to the writ court without exhausting the appellate process, Cherian circumvented the prescribed legal route.
Given the failure to produce essential documents and the availability of appellate recourse, the Kerala High Court found no merit in Cherian’s writ petitions and consequently dismissed them.
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