The Kerala High Court has recently dismissed a writ petition filed by M/s Viswabharathi Medicals on ground of violation of natural justice principles, on observing the contrary.
The petitioner had approached the Kerala High Court being aggrieved by the fact that reassessment proceedings have been initiated against the petitioner under the provisions of the Income Tax Act, 1961 in respect of assessment year 2016-17 illegally and without jurisdiction.
The petitioner, represented by K S Hariharan Nair contended that the petitioner filed its return of income for the assessment year in question within the due date and the same was processed accepting the return.
The petitioner submitted a reply to the impugned show cause notice issued against it. After affording to the petitioner an opportunity of hearing, a demand order had been issued rejecting the objections raised by the petitioner and it was found that the reassessment proceedings should continue against the petitioner.
The petitioner-assessee contended that the order is illegal and unsustainable. It was also argued by the petitioner that the order was passed without due consideration of the reply to the show-cause notice. He also submitted that the reopening of assessment was time-barred.
Christopher Abraham, appearing for the respondent Department submitted that there was absolutely no violation of natural justice in as much as every possible opportunity was extended to the petitioner and he was personally heard before the impugned order was passed.
It was also pointed out that the reassessment notice was within time as the case falls within Section 149(1)(b) of the Income Tax Act, which provides for a time limit of 10 years from the end of the assessment year in question and not under Section 149(1)(a) of the Income Tax Act.
The Single Bench of Justice Gopinath P observed that, the impugned order has “considered the submission made by the petitioner and has found that the contentions taken have to be examined in the reassessment proceedings which, will follow.”
Further observing that no natural justice violation arises for issuance of a writ from the contended facts, the writ petition was dismissed.
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