Disposed

M/S. Shamrock Trading Company, v. the Income Tax Officer

Kerala HC20 Oct 2023WP(C)/10584/2023

Case brief

AI extract

What is this about?

The High Court granted directions for filing a rectification application regarding an assessment order adding Rs.1.08 Cr. as income based on disputed RTGS transfers. The court directed the authority to consider a bank certificate showing the funds were credited to another account and restrained recovery pending the rectification order.

What did the court decide?

Petitioner permitted to file rectification application; assessing authority directed to consider Ext.P8 bank certificate; recovery stayed pending final order.

M/S. Shamrock Trading Company, Vs the Income Tax Officer — Income Tax | Kerala HC (2023)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH

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FRIDAY, THE 20TH DAY OF OCTOBER 2023 / 28TH ASWINA, 1945
WP(C) NO. 10584 OF 2023

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PETITIONER:

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M/S. SHAMROCK TRADING COMPANY,
IDUKKI KAVALA, BUILDING NO. XIII/445, KATTAPPANA,
IDUKKI, PIN – 685 508.

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REPRESENTED BY ITS MANAGING PARTNER, SUNNY FRANCIS

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BY ADVS.

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HARISANKAR V. MENON
MEERA V.MENON
R.SREEJITH

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K.KRISHNA

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RESPONDENTS:

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1 THE INCOME TAX OFFICER, WARD 1 & TPS,MAHIMA TOWERS, TEMPLE ROAD, THODUPUZHA, IDUKKI DISTRICT, PIN – 685 584.

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2 THE ADDITIONAL/JOINT/DEPUTY/ASST. COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER NATIONAL E-ASSESSMENT CENTRE, DELHI, PIN – 110 001.

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3 STATE BANK OF INDIA ERNAKULAM REGION OFFICE III BRANCH, SBT BHAVAN, PANAMPILLY NAGAR, ERNAKULAM, KOCHI , PIN - 682037 REPRESENTED BY ITS REGIONAL MANAGER.

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BY ADV CHRISTOPHER ABRAHAM, INCOME TAX DEPARTMENT

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
20.10.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 10584 OF 2023

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DINESH KUMAR SINGH, J.

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--------------------------------------------

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WP(C) NO. 10584 OF 2023

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--------------------------------------------

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Dated this the 20^th day of October, 2023

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J U D G M E N T

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The present writ petition has been filed impugning Ext.P7 assessment order passed by the 2^nd respondent. The assessing authority has added

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income of Rs.1,08,90,000/- as receipt for RTGS transfer by one Mr. Chingmak Chang, who is from a recognized Tribe of Nagaland State on two different dates i.e., 21.12.2017 and 22.12.2017. The specific and categorical stand of the petitioner was that the petitioner had never received the said amount in his bank account and petitioner was in process of obtaining particulars and certificate from Nagaland in respect of the RTGS payment of Rs.1,08,90,000/-. The assessing authority did not wait for the reply from the State Bank of India in Nagaland and finalised the assessment order for an

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WP(C) NO. 10584 OF 2023

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amount of Rs.1,08,90,000/- as the income of the petitioner.

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Learned counsel for the petitioner

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submits that SBI, Tuensang Branch, Nagaland has issued certificate in Ext.P8 dated 04.05.2023 which reflects that this amount was received on 21.12.2017 and 22.12.2017 in RBL Bank at Surat and no amount has been received in any of the bank account of the petitioner maintained at Kattappana, Idukki District. The petitioner has no bank account in Surat.

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Considering the aforesaid facts, the petitioner is permitted to file rectification application before the assessing authority to rectify the mistake. While considering the rectification application of the the petitioner, the assessing authority should take into consideration Ext.P8 certificate issued by the SBI, Tuensang Branch, Nagaland on 04.05.2023 in respect of the RTGS

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WP(C) NO. 10584 OF 2023

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transfer from the account of Mr. Chingmak Chang on 21.12.2017 and 22.12.2017.

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The petitioner should file rectification application within a period of 15 days. Till the rectification order is finally passed, no recovery shall be effected in pursuance to the impugned order.

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With the aforesaid directions, the present

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writ petition is disposed of.

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Sd/-

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DINESH KUMAR SINGH JUDGE

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rpr

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WP(C) NO. 10584 OF 2023

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APPENDIX OF WP(C) 10584/2023

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PETITIONER’S EXHIBITS

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Exhibit P1COPY OF ORDER ISSUED BY THE 1ST RESPONDENT
DTD. 29-03-2022

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Exhibit P2COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT
DTD. 31-10-2022
Exhibit P3COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT
DTD. 31-10-2022

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Exhibit P4COPY OF REPLY FILED BY THE PETITIONER BEFORE
THE 2ND RESPONDENT DTD. 19-01-2023

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Exhibit P5COPY OF NOTICE ISSUED BY THE 2ND RESPONDENT
DTD. 13-03-2023

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Exhibit P6COPY OF LETTER SUBMITTED BY THE PETITIONER
BEFORE THE 2ND RESPONDENT DTD. 16-03-2023

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Exhibit P7COPY OF ORDER ISSUED BY THE 2ND RESPONDENT
FOR THE YEAR 2018-19 DTD. 21-03-2023

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Exhibit P8COPY OF LETTER ISSUED BY CHIEF MANAGER, STATE
BANK OF INDIA, TUENSANG BRANCH, NAGALAND TO
THE PETITIONER DTD,. 04-05-2023

M/S. Shamrock Trading Company, v. the Income Tax Officer

Case brief

What is this about?

What did the court decide?

M/S. Shamrock Trading Company, v. the Income Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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