Assessment Order passed with Jurisdiction and No Violation of Principles of Natural Justice: Kerala HC directs to file Appeal u/s 246A of Income Tax Act [Read Order]

The present writ petition has been filed under Article 226 of the Constitution of India impugning the assessment order dated 26.12.2022 in respect of the assessment year 2021-22.

The counsel for the petitioner submitted that enquiries were held behind the back of the petitioner-assessee in respect of certain sales effected to different hospitals and the assessing authority did not take into consideration the details of the confirmation of the sales made by the petitioner to different hospitals, and the amount of sale considerations had been added as income of the petitioner.

It was further submitted that the petitioner had obtained the details with regard to confirmation of the sales from the said hospitals after the assessment order and therefore, prayed that the matter may be remanded back to the assessing authority with direction to re-consider the same on the basis of the sales confirmation.

Under Section 133C of the Income Tax Act, 1961, there is no requirement that notices for confirming the sales etc. should be issued with the knowledge of the assessee. The assessment order would disclose that in respect of the alleged sales effected by the petitioner to different hospitals, notice under Section 133(6) was sent to each of the hospitals.

However, no response was received from the said hospitals. During the assessment proceedings, the petitioner did not file sale confirmation letters, which have been obtained by him after the assessment order.

A Single Bench of Justice Dinesh Kumar Singh observed that “The petitioner was put to notice and thereafter the assessment proceedings had been completed. Therefore, I do not find that the impugned assessment order is without jurisdiction or there has been any violation of principles of natural justice. This Court would not like to consider the merits of the assessment order. The petitioner was given notice under Section 142(1) of the Income Tax Act.”

“In view of the above, the present writ petition is disposed of with liberty to the petitioner to file appeal under Section 246A of the Act before the appellate authority against the impugned assessment order, within a period of fifteen (15) days from today” the Court concluded.

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