Roy Kurian Vs PCIT (Kerala High Court)
Summary : The Kerala High Court considered a batch of writ petitions filed by a single assessee challenging assessment orders passed under Section 147 of the Income Tax Act for assessment years 2016-2017 to 2022-2023 and, in some cases, consequential penalty proceedings. The proceedings followed a search conducted at the petitioner’s premises on 05.01.2022. A principal explanation offered by the petitioner for unaccounted cash and transactions detected during the search was that the amounts represented income generated from agricultural activities carried out on properties claimed to extend to 147 acres.
The Assessing Officer rejected the explanation after relying, among other material, on reports of the Agricultural Officer and Village Officer stating that the properties were rocky land and unsuitable for the agricultural activities claimed by the petitioner. The petitioner also identified five entities with whom he claimed to have undertaken transactions involving Pineapple and other agricultural products. Notices issued to those persons were returned unserved. The petitioner requested an opportunity to examine or cross-examine the Agricultural Officer and Village Officer and also sought an opportunity to produce the persons with whom the transactions were claimed.
The Assessing Officer rejected the request for cross-examination on the ground that no statements had been recorded from the officers and that their reports were submitted in their official capacity. The petitioner was given time to produce witnesses. Two witnesses were examined on 14.03.2024, while two others were produced on 15.03.2024 but were not examined on the ground that the permitted time had expired on 14.03.2024. The assessment orders were thereafter finalized.
