Assessment of Income by NFAC without considering Deposited Amount: Kerala HC directs Income Tax Dept to dispose Appeal [Read Order]

The Kerala High Court directed the Income Tax Department to dispose of the appeal in relation the assessment of income by the National Faceless Assessment Centre (NFAC) without considering the deposited amount.

The present writ petition has been filed by KC Santhosh, impugning the assessment order passed by the assessment of Unit of National Faceless Assessment Centre, New Delhi, under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961. For the assessment year 2018-2019, the assessing authority has treated the total income of the petitioner at Rs.1,40,93,485/-. In the relevant assessment year, the petitioner has deposited an amount of Rs.1,14,13,100/-.

The petitioner has challenged the said order by filing an appeal before the first respondent. The appeal is pending before the second respondent, as is evident from the e-filing acknowledgment. The petitioner has also filed stay petition along with the appeal. The petitioner has also thereafter issued with the communication directing him to pay 20% of the demand amount as per the assessment order.

It was also submitted that the appeal is filed with a delay and delay condonation application is also pending. The petitioner apprehends that if the appeal and stay petition are not considered by the second respondent, the Joint Commissioner, coercive action for the assessed tax will be initiated by the third respondent, Income Tax Officer. Hence, the writ petition.

A Single Bench of Justice Dinesh Kumar Singh observed that “Considering the facts and circumstances, the second respondent is directed to consider and dispose of the appeal in accordance with law, preferably within a period of three months. It is made clear that if Exhibit P2 appeal is not taken up for final hearing within three months as directed above, the second respondent should make every endeavour to decide the application for condonation of delay and also stay petition.”

To Read the full text of the Order CLICK HERE

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