Relief to Malayalam Movie Artists Association AMMA: Kerala HC rules Income Tax Appellate Authority simply Extracted Findings of Assessing Authority [Read Order]
The appeal earlier filed by AMMA was dismissed by the NFAC on the ground of non-appearance by the appellant
Kerala High Court, Relief to Malayalam Movie Artists Association AMMA
Kerala High Court, Relief to Malayalam Movie Artists Association AMMA
In a significant relief to the Association of Malayalam Movie Artists (AMMA), the Kerala High Court held that the Income Tax Appellate Authority failed to comply with the statutory duty under Section 250(6) of the Income Tax Act, 1961, by merely reproducing the findings of the Assessing Officer without offering independent reasoning.
A writ petition was filed by AMMA, a charitable organization registered under Section 12A of the Income Tax Act. The petition challenged the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), rejecting its appeal against the assessment order for the Assessment Year 2014-15.
AMMA had filed an appeal before the First Appellate Authority challenging the assessment order issued by the Assistant Commissioner of Income Tax (Exemption Circle), Thiruvananthapuram. The appeal was dismissed by the NFAC on the ground of non-appearance by the appellant.
The petitioner approached the High Court contending that the appellate order violated the mandate of Section 250(6) of the Income Tax Act, which requires the Appellate Authority to issue a reasoned, speaking order addressing all points in dispute.
Counsel for AMMA, Sri K. Manoj Chandran, argued that despite the petitioner’s absence, the Commissioner (Appeals) was bound to consider the matter on merits and render a reasoned decision. The order, according to him, was a mechanical reproduction of the Assessing Officer’s findings without independent analysis or consideration of the grounds raised.
Standing Counsel for the Income Tax Department, Shri Jose Joseph, countered that since the petitioner failed to appear, the authority had no material to take a different view and therefore justified the decision to confirm the assessment.
The Court observed that the impugned order merely extracted the Assessing Officer’s findings without dealing with the specific contentions raised by the appellant. Justice Ziyad Rahman held that this approach violated the statutory requirement under Section 250(6) of Income Tax Act, which mandates the appellate order to specify the points for determination, the decision thereon, and the reasons for the decision.
The single-judge bench of Justice Ziyad Rahman A A, citing Anandan N. v. Commissioner of Income Tax (Appeals) [2025] (Kerala), reiterated that such non-speaking orders are unsustainable.
The Kerala High Court quashed the impugned order and directed the Commissioner of Income Tax (Appeals), NFAC, to reconsider AMMA’s appeal afresh after affording an opportunity of hearing to the petitioner and to pass a reasoned order in accordance with law.
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