High Court Disposes Writ Petition Against Income Tax Assessment Order

Case Name:

Heartwares Medicals India Private Limited v. Assessment Unit, Income Tax Department

Key Takeaways:

1. The petitioner challenged the assessment order, claiming that certain sales were held behind their back, and the assessing authority did not consider the details of the confirmation of the sales made by the petitioner to different hospitals.
2. The court disposed of the writ petition with liberty to the petitioner to file an appeal under Section 246A (of Income Tax Act, 1961) before the appellate authority against the impugned assessment order within fifteen (15) days from the judgment date.
3. No coercive steps shall be taken against the petitioner for a period of fifteen (15) days from the judgment date for the realization of the tax determined vide the impugned assessment order.

Case Synopsis:

This provided is a judgment from the High Court of Kerala at Ernakulam regarding a writ petition (Civil) No. 2789 of 2023 filed by Heartwares Medicals India Private Limited against the Assessment Unit, Income Tax Department, National Faceless Assessment Centre (NFAC), New Delhi.

The judgment was delivered by THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH on Wednesday, the 22nd day of November 2023. The judgment addresses the impugning of the assessment order in Ext.P13 dated 26.12.2022 in respect of the assessment year 2021-22.

The petitioner, Heartwares Medicals India Private Limited, represented by its Managing Director Mr. Shihabudeen.K, challenged the assessment order, claiming that certain sales were held behind their back, and the assessing authority did not consider the details of the confirmation of the sales made by the petitioner to different hospitals. The petitioner also stated that they obtained the details regarding the confirmation of the sales from the hospitals after the assessment order and requested the matter to be remanded back to the assessing authority with direction to reconsider based on the sales confirmation as per Ext.P14 series documents.

The judgment states that under Section 133C (of Income Tax Act, 1961), there is no requirement that notices for confirming the sales should be issued with the knowledge of the assessee. It was mentioned that notice under Section 133(6) (of Income Tax Act, 1961) was sent to each of the hospitals, but no response was received. The petitioner did not file sale confirmation letters during the assessment proceedings, which were obtained after the assessment order. The court concluded that the assessment order cannot be faulted for not considering the evidence collected by the petitioner after the issuance of the assessment order. The petitioner was advised to file an appeal against the assessment order under Section 246A (of Income Tax Act, 1961) before the appellate authority within fifteen (15) days from the judgment date.

In summary, the court disposed of the writ petition with liberty to the petitioner to file an appeal under Section 246A (of Income Tax Act, 1961) before the appellate authority against the impugned assessment order within fifteen (15) days from the judgment date. The judgment also directed that no coercive steps shall be taken against the petitioner for a period of fifteen (15) days from the judgment date for the realization of the tax determined vide the impugned assessment order.

FAQ:

Q1: What was the nature of the writ petition?

A1: The writ petition was filed under Article 226 of the Constitution of India, impugning the assessment order in respect of the assessment year 2021-22.

Q2: What was the decision of the court regarding the assessment order?

A2: The court disposed of the writ petition with liberty to the petitioner to file an appeal under Section 246A (of Income Tax Act, 1961) before the appellate authority against the impugned assessment order within fifteen (15) days from the judgment date.

Q3: Was any relief granted to the petitioner in the judgment?

A3: Yes, the judgment directed that no coercive steps shall be taken against the petitioner for a period of fifteen (15) days from the judgment date for the realization of the tax determined vide the impugned assessment order.