Case Law Details
Lulu International Shopping Malls Pvt Ltd. Vs DCIT (Kerala High Court)
Introduction: In a recent development, the Kerala High Court issued a significant ruling in the case of Lulu International Shopping Malls Pvt Ltd. vs. DCIT concerning the quashing of an assessment order. The court’s decision provides relief to Lulu International, as it found that the assessment order had been issued in the absence of proper consideration of their reply. This article delves into the details of the case, the legal arguments presented, and the implications of the court’s decision.
Detailed Analysis: The case involves Lulu International Shopping Malls Pvt Ltd., an assessee under the provisions of the Income Tax Act, 1961. The Income Tax Authorities initiated proceedings under Section 148 of the Income Tax Act, 1961, related to the assessment year 2016-2017. The third respondent issued a show cause notice, referred to as Exhibit P15, dated May 10, 2023, proposing a variation of Rs.21,86,27,050/- to the total income and computing losses at Rs.46,93,51,692/-.
The show cause notice required Lulu International to respond by May 15, 2023, through their registered e-filing account. In response, Lulu International requested an extension until May 22, 2023, to submit their reply, as indicated in Exhibit P16 on the Income Tax Department’s web page. However, no decision was communicated to Lulu International regarding the extension request, and the status of the application remained ‘open.’
Subsequently, when Lulu International attempted to upload their response, labeled as Exhibit P17, and requested an opportunity for a hearing before finalizing the assessment, they were unable to do so because the window for submission had closed. As a result, Lulu International sent emails to specified addresses on May 22, 2023, highlighting their inability to upload the reply and requesting the reopening of the e-proceedings facility on the web portal. Additionally, they addressed the matter with the Grievance Cell of the Faceless Assessment scheme, as evident from Exhibit P20. Despite these efforts, the assessment order, referred to as Exhibit P21, was issued without addressing Lulu International’s concerns.
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