Case Law Details
V.G. Suresh Vs DCIT (Kerala High Court)
Introduction: In a recent legal development, the Kerala High Court delivered a noteworthy judgment in the case of V.G. Suresh vs. DCIT. The petitioner challenged orders by the Commissioner of Income Tax (appeals) for assessment years 2011-12 to 2015-16, citing a violation of the principle of natural justice.
Detailed Analysis:
1. Grounds for Challenge: The crux of the petitioner’s argument lies in the violation of natural justice. The petitioner received hearing notices for 10.10.2023 and 19.10.2023, responded, and sought adjournment. However, the appellate authority proceeded ex parte, ignoring the petitioner’s plea. The petitioner asserts readiness to appear before the authority without seeking adjournment.
2. Court’s Observation: The court, considering the submissions, acknowledges a partial breach of natural justice. Consequently, the writ petitions are allowed, and the impugned appellate orders are set aside. The cases are remitted back to the Commissioner of Income Tax (appeals) for a fresh decision.
3. Directions to Petitioner: The petitioner is directed to appear before the appellate authority on 18.01.2024. Additionally, a deposit of 10% of the total assessed tax in all five assessment orders is mandated. This deposit ensures that the remaining demand, following the assessment orders, is kept in abeyance until the appellate authority’s decision. Failure to comply with these conditions forfeits further opportunities for the petitioner, and the tax assessed will be enforced.
Conclusion: The Kerala High Court’s ruling emphasizes the importance of adhering to the principles of natural justice in income tax assessments. The decision provides a second chance for the petitioner to present their case before the appellate authority. This case serves as a reminder of the significance of fair proceedings and adherence to legal principles in taxation matters.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
The present writ petitions have been filed impugning the orders passed by the Commissioner of Income Tax (appeals) – the 2nd respondent against the assessment orders for the assessment years 2011-12 to 2015-16.
2. Learned counsel for the petitioner submits that the petitioner has approached this Court only on the ground of violation of principle of natural justice as the petitioner was issued with the notice of hearing by the Appellate Authority for 10.10.2023 and 19.10.2023 for which the petitioner filed reply and requested for adjournment. However, the petitioner’s request was not considered and the exparte appellate orders have been passed. Learned counsel for the petitioner submits that the petitioner will appear on the date fixed before the Appellate Authority and will not seek any adjournment.
3. Considering the said submission, I am satisfied that there appears to have been violation of principle of natural justice to some extent. Therefore, the present writ petitions are allowed and the impugned Appellate orders are hereby set aside and the cases are remitted back to the 2nd respondent for decision afresh. The petitioner is directed to appear before the 2nd respondent and make submission on 18.01.2024. The petitioner should also deposit of 10% of the total assessed tax in all the 5 assessment orders and if the petitioner deposits 10% of the amount assessed in five assessment orders, remaining demand in pursuance to the assessment orders shall kept in abeyance till decision in the appeals taken by the 2nd respondent. It is made clear that, the petitioner does not deposit 10% of the assessed tax in the five assessment orders or fails to appear before the 2nd respondent on 18.01.2024, no further opportunity shall be granted to the petitioner and the demand as per the assessment orders shall be in force for realisation of the tax assessed.
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