Kerala HC dismisses Writ Petition against Assessment Order as Assessee Fails to Participate Proceedings u/s 147 of Income Tax Act [Read Order]

The Kerala High Court dismissed the writ petition against the assessment order as the assessee failed to participate in proceedings under section 147 of the Income Tax Act, 1961.

Katteri Kaderi, the petitioner is an assessee under the provisions of the Income Tax Act, impugning the assessment order passed under the provisions of Section 147 read with Sections 144 and 144B of the Income Tax Act.

The petitioner an assessee did not file his return of income under Section 139 (1) of the Income Tax Act, 1961 (the Act, 1961) for the assessment years 2018-19. The specific information was flagged as per the Risk Management Strategy formulated by the CBDT through ITBA software under the head ‘High-Risk CRI/VRU cases’.

As per the specific information, the petitioner had carried out the transactions mentioned in the impugned assessment order during the financial year 2017-18, relevant to the assessment year 2018-19. Consequently, the case was reopened.  The transaction would disclose the huge cash deposit and receipts including the purchase of a vehicle worth Rs.81,59,456/-.

The petitioner's case was reopened within the meaning of Section 147 of the Income Tax  Act, 1961 and notice under Section 148 was issued and served on the petitioner after obtaining necessary prior approval from the competent authority under Section 151 of the Income Tax  Act, 1961. 

The petitioner did not respond to the said notice and an order under Section 148A (d) of the Income Tax  Act, 1961 dated 30.03.2022 came to be passed and final notice under Section 148 of the Income Tax  Act, 1961 dated 30.03.2022 was issued to the petitioner asking him to file his return of income.  A notice under Section 142 (1) with a detailed questionnaire was also issued to the petitioner. 

In the absence of any response from the petitioner, the notice was also sent through speed post with a consignment number and as per the verification of the speed post, the said letter was delivered to the petitioner on 07.03.2023 and therefore, a show cause notice under Section 144 of the Income Tax Act, 1961 was issued and served on the petitioner on 27.01.2023 allowing the assessee to show cause within the period prescribed as to why in the absence of compliance by the assessee, the time barring should not be concluded logically ex parte.

The petitioner however did not respond to any such notices and communications and considering the record available with the Assessing Officer, the assessment under Section 144 read with Section 147 and  Section 144B of the  Income Tax  Act, 1961 was finalised on a total income of Rs. 2,27,95,237/-. 

A single bench of Justice Dinesh Kumar Singh observed that every communication/notice is not only uploaded in the portal but is also communicated in e-mail with real-time alerts by messages.

Since the petitioner did not participate in the assessment proceedings initiated under Section 147 read with Section 148 since the petitioner did not file a return of his income, the court dismissed the petitioner leaving it open to the petitioner to file any other remedy.

To Read the full text of the Order CLICK HERE

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