High Court Dismisses Writ Petition Challenging Income Tax Assessment Order

Case Name:

A. E. Varghese v. Commissioner of Income Tax (Appeals) & Income Tax Officer

Key Takeaways:

1. The petitioner’s appeal against an assessment order under the Income Tax Act, 1961 was dismissed by the High Court of Kerala at Ernakulam.
2. The court found that the petitioner did receive intimation regarding the hearing of the appeal through the automated system used by the Income Tax Department.
3. The petitioner was advised to take recourse to the remedy available under the statute before the Income Tax Appellate Tribunal against the impugned appellate order.

Case Synopsis:

The High Court of Kerala at Ernakulam regarding a writ petition (civil) with the case number WP(C) NO. 35663 OF 2023. The petitioner in this case is A. E. Varghese, aged 65 years, and the respondents are the Commissioner of Income Tax (Appeals) and the Income Tax Officer.

The judgment was delivered by THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH on the 10th day of November 2023. The judgment addresses the challenge to the order dated 31.8.2023, Ext.P2, passed under Section 250 (of Income Tax Act, 1961) by the first respondent in an appeal filed against the assessment order dated 28.12.2017 under Section 143(3) (of Income Tax Act, 1961).

The assessment order in question is for the assessment year 2015-16, and it pertains to a cash deposit of Rs.1,24,25,000 in the savings bank accounts with ICICI Bank (Rs.1,15,25,000) and Canara Bank (Rs.9,00,000). The assessing officer added Rs.53,03,000 as income of the petitioner/assessee due to the failure to prove the source of this amount.

The petitioner filed an appeal against this order, and the judgment addresses the argument that the petitioner did not receive intimation regarding the hearing of the appeal. The court found that under the system followed, every notice is uploaded in the portal and sent by the Department through the e-mail address given by the assessee with real-time SMS alert in the mobile number provided by the assessee. The court dismissed the writ petition, stating that there was no substance in the submission that the petitioner did not receive intimation/notice regarding the hearing of the appeal.

However, the court also mentioned that it will be open to the petitioner to take recourse to the remedy available under the statute before the Income Tax Appellate Tribunal against the impugned appellate order. If the petitioner files an appeal before the ITAT within a period of three weeks, the ITAT shall consider the appeal and take a decision expeditiously, in accordance with the law, without going into the question of limitation.

In conclusion, the writ petition was dismissed, and the interlocutory application, if any, in the present writ petition stands dismissed.

FAQ:

Q1: What was the outcome of the writ petition?

A1: The writ petition was dismissed by the High Court.

Q2: What was the basis of the petitioner’s challenge?

A2: The petitioner challenged an order under the Income Tax Act, 1961, regarding an assessment order that added a certain amount as income due to the failure to prove the source of a cash deposit.

Q3: What was the court’s advice to the petitioner?

A3: The court advised the petitioner to take recourse to the remedy available under the statute before the Income Tax Appellate Tribunal against the impugned appellate order.