Case Law Details
Shaju Pachelil Pathrose Vs ACIT (Kerala High Court)
Introduction: The recent judgment by the Kerala High Court in the case of Shaju Pachelil Pathrose vs ACIT delves into the validity of an income tax assessment order dated 24.05.2023. The petitioner challenges the assessment order passed under Section 147 of the Income Tax Act, 1961, and a penalty notice issued under Section 271(1)(c). The central contention revolves around the denial of time requests by the assessee in response to show cause notices.
Detailed Analysis: The case originated from the flagging of information in accordance with the risk management strategy formulated by the Central Board of Direct Taxes. The assessment was reopened with a notice under Section 148 on 28.06.2021, citing high-value cash transactions by the assessee. The petitioner responded to the notice under Section 148A(b) of the IT Act, 1961, citing the decision of the Hon’ble Supreme Court in the case of Union of India & Ors. v. Ashish Aggarwal [2022 SCC Online SC 543].
The impugned assessment order, dated 24.05.2023, determined the total taxable income to be Rs. 6,48,29,2113/- with an addition of Rs. 6,36,70,393/- under Section 69A. The demand notice for tax payment and a penalty notice were issued, leading to the petitioner’s challenge.
The petitioner, through their counsel, argued that they responded to the show cause notice and requested time, as evidenced by Exhibit P-8. Despite this, the impugned assessment order was passed on 24.05.2023. The court noted that the petitioner did not file a reply even within the extended time granted until 20.05.2023. The petitioner, when issued a second show cause notice, requested further time until 07.06.2023.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
