Dismissed

Kattur Mahamood, v. Union of India

Kerala HC18 Dec 2023WP(C)/28493/2022

Case brief

AI extract

What is this about?

The High Court of Kerala dismissed a writ petition challenging an income tax assessment order. The petitioner argued that missing Document Identification Numbers (DIN) in the draft order rendered proceedings nullity. The court held that since DIN was present on the communication bearing the draft order, subsequent proceedings were valid.

What did the court decide?

The writ petition is dismissed as it fails on merits.

Kattur Mahamood, Vs Union of India — 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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MONDAY, THE 18TH DAY OF DECEMBER 2023 / 27TH AGRAHAYANA, 1945
WP(C) NO. 28493 OF 2022

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PETITIONER:

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KATTUR MAHAMOOD,
AGED 55 YEARS, KATTUR HOUSE,
KADAVATHUR P. O., KADAVATHUR,
THALASSERY, KANNUR -670675.

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BY ADVS.
 SRI. RAJA KANNAN
 SRI. M. GOPIKRISHNAN NAMBIAR
 SRI. K. JOHN MATHAI
 SRI. JOSON MANAVALAN
 SRI. KURYAN THOMAS
 SRI. PAULOSE C. ABRAHAM

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RESPONDENTS:

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1 UNION OF INDIA, REPRESENTED BY ITS REVENUE SECRETARY, MINISTRY OF FINANCE, NEW DELHI -110004.

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2ADDITIONAL / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF
INCOME TAX/ INCOME-TAX OFFICER,
NATIONAL FACELESS ASSESSMENT CENTRE,
ROOM NO. 401, 2ND FLOOR, E-RAMP,
JAWAHARLAL NEHRU STADIUM, NEW DELHI- 110003.

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3 INCOME TAX OFFICER, WARD 2, AAYAKAR BHAVAN, KONNOTHUMCHAL, CHOVVA P. O., KANNUR -670006.

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BY ADV.
 SRI. S. MANU - DEPUTY SOLICITOR GENERAL OF INDIA
 SRI. JOSE JOSEPH - SC - INCOME TAX

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
18.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 28493 OF 2022

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DINESH KUMAR SINGH, J.

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W.P.(C) No.28493 of 2022

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Dated this the 18^th day of December, 2023

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JUDGMENT

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The petitioner has approached this Court in the present writ petition impugning Exhibit P-10(a) assessment order dated 13.09.2021 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (hereinafter referred to as the “Act, 1961” for short) in respect of the assessment year 2013-14.

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A search and seizure operation was conducted at the residential office and business premises of Parco Group of Concerns. Said said Concern is engaged in the business of retail jewellery shops under the brand name M/s. Swarnanjali Gold. The petitioner is one of the partners of the partnership firm, M/s. Swarnanjali Gold. The Parco Group of Concerns has eight partnership firms spread over different districts of Ma14labar.

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It was noticed that the petitioner in the financial year 2012-13, relevant to the assessment year 2013-14 has invested Rs. 14,00,000/- in the partnership firm. The petitioner had not filed return of his income in respect of the said assessment year. The petitioner was issued

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WP(C) NO. 28493 OF 2022

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notice on 18.03.2020 under Section 148 and thereafter, notice under Section 142 (1) and finally under Section 148 in response to which the petitioner has filed return. The assessment order under Section 143 (3) read with Section 147 of the Act, 1961 was completed as income of Rs. 14,45,302/- on which the tax of Rs. 7,81,730/- was assessed.

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The learned Counsel for the petitioner submits that the draft assessment order which was communicated to the petitioner in Exhibit P-10 did not have Document Identification Number (DIN) number and, therefore, the proceedings after draft assessment order are nullity. The petitioner has placed reliance on Exhibit P-14 Circular No. 19/2019 dated 14.08.2019 issued by the Central Board of Direct Taxes.

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I have considered the submissions and the provision of Exhibit P-14 Circular as well. As the Income Tax Department has moved to E-governance in order to ensure better transparency in the functions of the tax administration and to maintain the records of notice, orders, summons, letter and any correspondence in exercise of power under Section 119 of the Act, 1961 the Board had taken a decision that no communication should be issued by any income tax authority relating to assessment, appeals, orders, statutory or otherwise, etc. after 1^st day of October, 2019 unless a computer generated Document Identification Number (DIN) has been allotted and is duly quoted in the

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WP(C) NO. 28493 OF 2022

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body of such communication.

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The draft assessment order has been communicated with the Show Cause Notice in Exhibit P-10 dated 15.09.2021. The communication dated 15.09.2021 in Exhibit P-10 bears DIN number by which the draft assessment order for objection by the petitioner has been issued to him. Therefore, I do not find substance in the submission that since the draft assessment order does not bear the DIN, the subsequent proceedings has been rendered nullity. It is important to note that the communication by which the draft assessment order for the objection has been issued to the petitioner bears the DIN and that is the purpose of Exhibit P-14 Circular. The petitione14r has also filed the objection to the draft assessment order and the petitioner has never raised this objection before the authority concerned. Even otherwise, I do not find substance that the draft assessment order itself does not bear the DIN, the subsequent proceedings have rendered nullity.

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The present writ petition fails and, therefore, hereby dismissed.

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Sd/DINESH KUMAR SINGH JUDGE

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Svn

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WP(C) NO. 28493 OF 2022

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APPENDIX OF WP(C) 28493/2022

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PETITIONER'S EXHIBITS

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`EXHIBIT P1`	`THE TRUE COPY OF THE NOTIFICATION NO.` `61/2019/F.NO. 370149/154/ 2019-TPL {S.O.` `3264(E)} DATED 12.09.2019 ISSUED BY THE CENTRAL` `BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT`
`EXHIBIT P2`	`THE TRUE COPY OF THE NOTIFICATION NO.` `60/2020/F.NO.` `370149/154/` `2019-TPL{S.O.` `2745(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL` `BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT`
`EXHIBIT P3`	`THE TRUE COPY OF THE NOTIFICATION NO.` `61/2020/F.NO.` `370149/154/2019-TPL` `{S.O.` `2746(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL` `BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT`
`EXHIBIT P4`	`THE TRUE COPY OF THE NOTICE DATED 18.03.2020` `ISSUED BY THE 3RD RESPONDENT UNDER SECTION 148` `OF THE ACT`
`EXHIBIT P5`	`THE TRUE COPY OF THE REPLY DATED 12.11.2020` `WITH PROOF OF ACKNOWLEDGMENT FROM THE OFFICE OF` `THE 3RD RESPONDENT`
`EXHIBIT P6`	`THE TRUE COPY OF THE NOTICE (WITHOUT ANNEXURES)` `DATED 31.12.2020 ISSUED BY THE 3RD RESPONDENT` `UNDER SECTION 143(2) READ WITH SECTION 147 OF` `THE ACT`
`EXHIBIT P7`	`THE TRUE COPY OF THE NOTICE DATED 29.01.2021` `ISSUED BY THE 2ND RESPONDENT UNDER SECTION` `142(1) OF THE ACT FOR THE A.Y 2013-14`
`EXHIBIT P7(a)`	`THE TRUE COPY OF THE NOTICE DATED 22.02.2021` `ISSUED BY THE 2ND RESPONDENT UNDER SECTION` `142(1) OF THE ACT FOR THE A.Y 2013-14`
`EXHIBIT P8`	`THE TRUE COPY OF THE REPLY (WITHOUT ANNEXURES)` `DATED 26.02.2021 SUBMITTED BY THE PETITIONER`
`EXHIBIT P8(a)`	`THE TRUE COPY OF THE FORM DATED 24.02.2020 FOR` `RECORDING` `THE` `REASONS` `FOR` `INITIATING` `PROCEEDINGS UNDER SECTION 147 OF THE ACT` `SUBMITTED BY THE 3RD RESPONDENT`

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WP(C) NO. 28493 OF 2022

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EXHIBIT P8(b)THE TRUE COPY OF THE E-ACKNOWLEDGMENT (DATED
NIL) GENERATED IN THE IT PORTAL IN RESPECT OF
THE FILING OF EXT. P8 REPLY AND VARIOUS
ATTACHMENTS
EXHIBIT P9THE TRUE COPY OF THE COMMUNICATION/LETTER DATED
18.08.2021 ISSUED BY THE 3RD RESPONDENT FOR THE
A.Y. 2013-14
EXHIBIT P10THE TRUE COPY OF THE NOTICE (WITHOUT ANNEXURES)
DATED 15.09.2021 ISSUED BY THE 2ND RESPONDENT
FOR THE A.Y 2013-14
EXHIBIT P10(a)THE TRUE COPY OF THE DRAFT ASSESSMENT ORDER
DATED 13.09.2021 ISSUED BY THE 2ND RESPONDENT
UNDER SECTION 147 OF THE ACT, FOR THE A.Y.
2013-14
EXHIBIT P11THE TRUE COPY OF THE ASSESSMENT ORDER DATED
22.09.2021 ISSUED BY THE 2ND RESPONDENT FOR A.Y
2013-14
EXHIBIT P12THE TRUE COPY OF THE NOTICE OF PENALTY DATED
22.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER
SECTION 274 READ WITH SECTION 271(1)(C) OF THE
ACT
EXHIBIT P12(a)THE TRUE COPY OF THE NOTICE OF PENALTY DATED
22.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER
SECTION 274 READ WITH SECTION 271F OF THE ACT
EXHIBIT P13THE TRUE COPY OF AN ARTICLE DATED 22.08.2021,
DOWNLOADED FROM WWW.CACLUBINDIA.COM, PROVIDING
INFORMATION RELATING TO THE GLITCHES IN THE NEW
IT PORTAL
EXHIBIT P14THE TRUE COPY OF THE CIRCULAR NO. 19/2019 DATED
14.08.2019 ISSUED BY THE CBDT, NEW DELHI
EXHIBIT P14(a)THE TRUE COPY OF THE PRESS RELEASE DATED
14.08.2019 ISSUED BY THE CBDT, NEW DELHI

Kattur Mahamood, v. Union of India

Case brief

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Kattur Mahamood, v. Union of India

Case brief

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