Challenge on Reopening of Income Tax Assessment Order: Kerala HC sets aside Assessment Order [Read Order]

The division bench of the Kerala High Court set aside the reopening assessment made under the Income Tax Act, of 1961. The challenge was on the validity of Reopening of Income Tax Assessment and it was alleged that the single judge failed to consider the bar of limitation.

This intracourt appeal arises from the judgment of the Single Judge.  The appellant,  Cherupurath Mohammed Jeens challenged the assessment order for the assessment year 2013 – 2014, after re-opening the assessment under Section 148 of the Income Tax Act. 

The appellant has a case in the assessment that is barred by limitation by placing reliance on the proviso to Section 149 of the Income Tax Act which has not been considered.  It was alleged that the Single Judge relegated the appellant to seek appellate remedy under the Income Tax Act. 

The court comprising Justice A Muhamed Mustaque & Justice Shoba Annamma Eapen viewed that the issue relating to limitation had not been adverted while passing the assessment order. The Court found it appropriate to set aside the assessment order for the assessment year 2013 – 2014 for re-consideration, after hearing the petitioner. Accordingly, the assessment order was set aside for re-consideration and the writ appeal was disposed of.

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