Dismissed

Jibu John, v. Income Tax Officer

Kerala HC23 Jan 2024WP(C)/2339/2024

Case brief

AI extract

What is this about?

Writ petition challenging an assessment order for AY 2015-16 reopened under Section 147. The petitioner argued the finally assessed escaped income fell below the Rs. 50 lakh threshold under Section 149. The court held reopening depends on the assessing authority's estimation of escaped income and dismissed the petition.

What the court decided

AI extract

Jibu John, Vs Income Tax Officer — Income Tax | Kerala HC (2024)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 23^RD DAY OF JANUARY 2024 / 3RD MAGHA, 1945 WP(C) NO. 2339 OF 2024

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PETITIONER:

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JIBU JOHN,
MURUPPEL VEEDU PARANTHAL,
PATHANAMTHITTA, PIN – 689518.

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BY ADVS.
 SRI. K. S. HARIHARAN NAIR
 SRI. C. SAJU DAVID
 SMT. HARIMA HARIHARAN
 SMT. G. REMADEVI
 SRI. RAJATH R. NATH
 SRI. DHEERAJ SASIDHARAN

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RESPONDENTS:

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1INCOME TAX OFFICER,
WARD - 1(2), PUSHKARA HOUSE,
NH - 37, NUTUN GOAN P. O., MOHANAGHAT,
DIBRUGARH, ASSAM, PIN – 786008.

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2PRINCIPAL COMMISSIONER OF INCOME TAX,
OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX ,
AAYAKAR BHAVAN, MAHATMA GANDHI ROAD, SHILLONG, MEGHALAYA,
PIN – 793001.

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3 INCOME TAX OFFICER, WARD 2, OFFICE OF ADDITIONAL CIT, THIRUVALLA RANGE, TK ROAD, THIRUVALLA, KERALA, PIN – 689101.

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4 DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, AAYAKAR BHAVAN, KOWDIAR, THIRUVANANTHAPURAM, KERALA, PIN – 695003.

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5 ASSISTANT COMMISSIONER OF INCOME TAX (HQ) & SECRETARY, DISPUTE RESOLUTION PANEL - 2, 'A' WING, 4TH FLOOR, KENDRIYA SADAN, KORAMANGALA, BENGALURU, PIN – 560034.

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BY ADVS.
 SRI. P. G. JAYASHANKAR - SC
 SRI. KEERTHIVAS GIRI - SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
23.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 2339 OF 2024

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DINESH KUMAR SINGH, J.

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W.P.(C) No. 2339 of 2024

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Dated this the 23^rd day of January, 2024

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JUDGMENT

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The present writ petition has been filed impugning Exhibit P-12 assessment order in respect of the assessment year 2015-16 under Section 147 read with Section 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for short).

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The petitioner is non Non Resident Indian living in United Arab Emirates. He did not file return of his income for the assessment year 2015-16. Information through Insight portal was received for the assessment year which would disclose hat the petitioner had transactions of Rs. 60,08,932/- in the financial year 2014-15 relevant to the assessment year 2015-16.

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A notice under Section 148 of the Act was was issued on 31.03.2022 by the jurisdictional ITO and, thereafter, notice under 144A(d) was passed. The assessing authority was of the opinion that the income of the petitioner has escaped assessment in the relevant year and, therefore, it was a fit case for reopening the assessment. Thus, the income which escaped assessment according to the assessing authority is Rs. 92,63,390/-. This amount is over the threshold limit of Rs. 50,00,000/-

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WP(C) NO. 2339 OF 2024

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as provided under Section 149 of the Act.

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The learned Counsel for the petitioner submits that after assessment the income has come only Rs. 20,29,690/- which had escaped assessment in the relevant year and, therefore, the jurisdictional ITO did not have any jurisdiction to proceed with reopening of the assessment.

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I find the submission not tenable. It is not the final assessment order which is looked at. But in the estimation of the assessing authority, the threshold income is more than Rs. 50,00,000/- which has escaped assessment, and, therefore, reopened the assessment. Therefore, I find no substance in this writ petition, which is hereby dismissed.

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The petitioner has filed rectification application in Exhibit P-13. The assessing authority is directed to consider and pass order on the rectification application expeditiously.

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The petitioner, however, may challenge the assessment order before the appellate authority and if the appeal is filed against the said assessment order, the appellate authority will consider the appeal in accordance with the law without being prejudice to any of the observations made herein above.

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Sd/-

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DINESH KUMAR SINGH JUDGE

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Svn

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WP(C) NO. 2339 OF 2024

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APPENDIX OF WP(C) 2339/2024

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PETITIONER’S EXHIBITS

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EXHIBIT P1COPY OF THE NOTICE DATED 15-03-2022 ISSUED
BY THE 1ST RESPONDENT

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EXHIBIT P2COPY OF THE NOTICE DATED 23-03-2022 ISSUED
BY THE 1ST RESPONDENT

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EXHIBIT P3 COPY OF THE REPLY DATED 29-03-2022 SUBMITTED BY THE PETITIONER AGAINST EXT. P2

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EXHIBIT P4 COPY OF ACKNOWLEDGMENT FROM THE INCOME TAX WEB PORTAL FOR SUBMISSION OF EXT. P3

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EXHIBIT P5 COPY OF THE ORDER DATED 31-03-2022 ISSUED BY THE 1ST RESPONDENT

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EXHIBIT P6COPY OF THE NOTICE UNDER SECTION 148 DATED
31-03-2022 ISSUED BY THE 1ST RESPONDENT

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EXHIBIT P7 COPY OF THE ORDER DATED 14-12-2022 ISSUED BY THE 2ND RESPONDENT

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EXHIBIT P8COPY OF THE LETTER DATED 19-12-2022 ISSUED
BY THE 3RD RESPONDENT

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EXHIBIT P9 COPY OF THE NOTICE UNDER SECTION 143(2) DATED 06-03-2023 ISSUED BY THE 4TH RESPONDENT

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EXHIBIT P10COPY OF THE DRAFT ASSESSMENT ORDER DATED
16-03-2023 ISSUED BY 4TH RESPONDENT

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EXHIBIT P11 COPY OF THE DIRECTIONS DATED 31-10-2023 ISSUED BY THE 5TH RESPONDENT

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EXHIBIT P12COPY OF THE ASSESSMENT ORDER DATED 28-11-
2023 ISSUED BY THE 4TH RESPONDENT

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EXHIBIT P13COPY OF THE RECTIFICATION PETITION DATED
28-12-2023 FILED BY THE PETITIONER AGAINST
EXT. P12

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WP(C) NO. 2339 OF 2024

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EXHIBIT P14COPY OF THE JUDGMENT DATED 07-12-2023 OF
THE HON'BLE KARNATAKA HIGH COURT IN PRAMILA
MAHADEV TADKASE VS. THE INCOME TAX OFFICER
& OTHERS (WRIT PETITION NO. 18407 OF 2023)

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EXHIBIT P15COPY OF THE JUDGMENT DATED 10-11-2023 OF
THE HON'BLE DELHI HIGH COURT IN GANESH DASS
KHANNA VS. INCOME TAX OFFICER AND ANR (W.P.
(C) 11527/2022 & CM APPL. 34097/2022 AND
CONNECTED CASES)

Jibu John, v. Income Tax Officer

Case brief

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What the court decided

Jibu John, v. Income Tax Officer

Case brief

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What the court decided

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