Leric Reeches Order-11.04.2024

2024:KER:28417
IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT
THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH
THURSDAY, THE 11TH DAY OF APRIL 2024 / 22ND CHAITHRA, 1946
WP(C) NO. 14409 OF 2024
PETITIONER:
LERIC REECHES,
AGED 51 YEARS, VP-4/442 THUSHARAM,
VIZHINJAM P. O., TRIVANDRUM,
KERALA, PIN – 695521.
BY ADVS.
SRI. R. V. EASWAR (SR.)
SRI. SIDHARTH A. MENON
SRI. MUHAMMED ALJUQ A.
SMT. RUBAL BANSAL(D/3897/2010)
SRI. PRAKHAR PANDEY(D/4368/2019)
SMT. SANDRA MARIYA(K/1690/2023)
RESPONDENTS:
1 INCOME TAX OFFICER,

WARD 2(1), TRIVANDRUM, ROOM NO:A-104, 1ST,
AAYKAR BHAWAN, IST FLOOR, KAWDIAR P. O.,
THIRUVANANTHAPURAM, KERALA, PIN – 695003.
2 ASSESSMENT UNIT INCOME TAX DEPARTMENT (NFAC,)

NORTH BLOCK, NEW DELHI,
REPRESENTED BY CIT (NFAC), PIN – 110001.
BY ADVS.
SRI. CHRISTOPHER ABRAHAM - SC
SRI. KEERTHIVAS GIRI - SC
SRI. P. G. JAYASHANKAR - SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON

11.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 14409 OF 2024 2024:KER:28417
2
DINESH KUMAR SINGH, J.

--------------------------
W.P.(C) No. 14409 of 2024
-------------------------
Dated this the 11th day of April, 2024
JUDGMENT
1. Heard Mr. R. V. Easwar, learned Senior Counsel for the
petitioner assisted by Ms. Rubal Bansal, Prakhar Pandey, Sidharth A.
Menon and Mr. Muhammed Aljuq A. and Mr. Christopher Abraham,
learned Senior Standing Counsel for the Revenue.
2. The present writ petition has been filed impugning the
assessment order dated 13.03.2024 passed under the provisions of
Section 147 read with Section 144 and 144B of the Income Tax Act,
1961 for the assessment year 2016-17.
3. The learned Senior Counsel for the petitioner submits that he
will confine his arguments only on the point of violation of the
principles of natural justice and denial of effective hearing to the
petitioner.
4. The petitioner, an assessee under the provisions of the Act,
did not file return of his income for the assessment year 2016-17
under Section 139 of the Act.

WP(C) NO. 14409 OF 2024 2024:KER:28417
3
5. The information available with the Department would suggest
that the petitioner has sold an immovable property to M/s.
Greenleaf Resorts Private Limited during the financial year 2015-16
relevant to the assessment year 2016-17. The Department was of
the view that the capital gains earned by the petitioner in this
transaction has escaped assessment for income tax under the
provisions of the Act. Therefore, Show Cause Notice was issued to
the petitioner and after fixing the hearing on 13.03.2023 and
24.03.2023, the petitioner filed reply to the Show Cause Notice and,
thereafter order under Section 148A(d) of the Act was passed on
29.03.2023 for issuing notice under Section 148 of the Act. In
response to the said notice, the petitioner filed return of his income
for the assessment year in question. In the while, petitioner filed
reply to the Show Cause Notice dated 22.12.2023 opted for
personal hearing through video conferencing. The petitioner was
provided the link, however, the petitioner could not join the link for
technical failure on the part of the Department. To that effect, the
petitioner had taken the screenshot which has been placed on
record as Exhibit P-14 and also addressed e-mail regarding the issue
that the petitioner could not log in to address the argument.
However, despite this e-mail addressed to the Department, no

WP(C) NO. 14409 OF 2024 2024:KER:28417
4
further opportunity was given to the petitioner and the impugned
order has been passed.
6. It is submitted by the learned Senior Counsel for the petitioner
that the opportunity of hearing means ‘effective opportunity of
hearing’ and that the petitioner could not log in to address the
argument because of the technical failure in the website itself,
there was no hearing at all. It is submitted that since there has been
failure of compliance of the statutory provision of hearing as well as
principles of natural justice as enshrined under Article 14 of the
Constitution of India, the order suffers from inherent illegality and,
therefore, it may be set aside.
7. Mr. Christopher Abraham, learned Senior Standing Counsel for
the Revenue is not in a position to dispute the screenshot and the e-
mail placed on record by the petitioner.
8. Considering the above submissions and taking note of the fact
that the petitioner was not given effective hearing and without
providing the effective hearing the impugned assessment order has
been passed, I am of the considered view that the order suffers
from violation of the principles of natural justice and, therefore, the
same is set aside. The matter is remitted back to the 2 nd respondent
to provide fresh link to the petitioner intimating the date and time
WP(C) NO. 14409 OF 2024 2024:KER:28417
5
for hearing and after hearing the petitioner on the date and time
fixed, the assessment order should be finalised expeditiously in
accordance with the law.
With the aforesaid directions, the present writ petition stands
allowed.
Sd/-
DINESH KUMAR SINGH

JUDGE
Svn
WP(C) NO. 14409 OF 2024 2024:KER:28417
6
APPENDIX OF WP(C) 14409/2024
PETITIONER’S EXHIBITS
EXHIBIT P1 FINAL ASSESSMENT ORDER DATED 13.03.2024 ISSUED

BY RESPONDENTS
EXHIBIT P2 NOTICE OF DEMAND DATED 13.03.2024 ISSUED UNDER

SECTION 156 OF THE IT ACT
EXHIBIT P3 NOTICE FOR PENALTY DATED 13.03.2024 ISSUED UNDER

SECTION 274 READ WITH SECTION 271(1)(C) OF THE
IT ACT
EXHIBIT P4 NOTICE FOR PENALTY DATED 13.03.2024 ISSUED UNDER

SECTION 274 READ WITH SECTION 271F OF THE IT ACT
EXHIBIT P5 NOTICE DATED 29.03.2023 ISSUED UNDER SECTION 148

OF THE IT ACT
EXHIBIT P6 ORDER DATED 29.03.2023 ISSUED UNDER CLAUSE (D)

OF SECTION 148A OF THE IT ACT
EXHIBIT P7 NOTICE DATED 06.03.2023 UNDER CLAUSE (B) OF

SECTION 148A OF THE IT ACT
EXHIBIT P8 TRUE COPY OF THE REPLY TO P7 DATED 06.04.2023

FILED BY THE PETITIONER
EXHIBIT P9 TRUE COPY OF NOTICE DATED 24.08.2023 UNDER

SECTION 142(1) OF THE ACT ISSUED BY R2
EXHIBIT P10 TRUE COPY OF NOTICE DATED 22.09.2023 UNDER

SECTION 143(2) OF THE IT ACT ISSUED BY R2
EXHIBIT P11 TRUE COPY OF SHOW CAUSE NOTICE DATED 22.12.2023

ISSUED BY R2
EXHIBIT P12 TRUE COPY OF REPLY TO P11 DATED 31.01.2024
EXHIBIT P13 TRUE COPY OF EMAIL INTIMATING THE APPROVAL TO

ATTEND VC HEARING DATED 04.03.2024
EXHIBIT P14 TRUE COPY OF EMAIL DATED 07.03.2024 WITH

ATTACHMENT OF SCREENSHOT EVIDENCING THE
ATTENDANCE OF PETITIONER IN SCHEDULED MEETING

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2024:KER:28417

IN THE HIGH COURT OF KERALA AT ERNAKULAM

1 INCOME TAX OFFICER,

2 ASSESSMENT UNIT INCOME TAX DEPARTMENT (NFAC,)

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON

DINESH KUMAR SINGH, J.

1. Heard Mr. R. V. Easwar, learned Senior Counsel for the

petitioner assisted by Ms. Rubal Bansal, Prakhar Pandey, Sidharth A.

Menon and Mr. Muhammed Aljuq A. and Mr. Christopher Abraham,

learned Senior Standing Counsel for the Revenue.

2. The present writ petition has been filed impugning the

assessment order dated 13.03.2024 passed under the provisions of

1961 for the assessment year 2016-17.

3. The learned Senior Counsel for the petitioner submits that he

will confine his arguments only on the point of violation of the

principles of natural justice and denial of effective hearing to the

4. The petitioner, an assessee under the provisions of the Act,

under Section 139 of the Act.

5. The information available with the Department would suggest

that the petitioner has sold an immovable property to M/s.

Greenleaf Resorts Private Limited during the financial year 2015-16

relevant to the assessment year 2016-17. The Department was of

transaction has escaped assessment for income tax under the

provisions of the Act. Therefore, Show Cause Notice was issued to

the petitioner and after fixing the hearing on 13.03.2023 and

thereafter order under Section 148A(d) of the Act was passed on

29.03.2023 for issuing notice under Section 148 of the Act. In

for the assessment year in question. In the while, petitioner filed

reply to the Show Cause Notice dated 22.12.2023 opted for

personal hearing through video conferencing. The petitioner was

technical failure on the part of the Department. To that effect, the

petitioner had taken the screenshot which has been placed on

that the petitioner could not log in to address the argument.

However, despite this e-mail addressed to the Department, no

further opportunity was given to the petitioner and the impugned

order has been passed.

6. It is submitted by the learned Senior Counsel for the petitioner

that the opportunity of hearing means ‘effective opportunity of

argument because of the technical failure in the website itself,

failure of compliance of the statutory provision of hearing as well as

principles of natural justice as enshrined under Article 14 of the

Constitution of India, the order suffers from inherent illegality and,

therefore, it may be set aside.

7. Mr. Christopher Abraham, learned Senior Standing Counsel for

the Revenue is not in a position to dispute the screenshot and the e-

mail placed on record by the petitioner.

8. Considering the above submissions and taking note of the fact

providing the effective hearing the impugned assessment order has

been passed, I am of the considered view that the order suffers

from violation of the principles of natural justice and, therefore, the

same is set aside. The matter is remitted back to the 2 nd respondent

fixed, the assessment order should be finalised expeditiously in

accordance with the law.

With the aforesaid directions, the present writ petition stands

DINESH KUMAR SINGH

APPENDIX OF WP(C) 14409/2024

EXHIBIT P1 FINAL ASSESSMENT ORDER DATED 13.03.2024 ISSUED

EXHIBIT P2 NOTICE OF DEMAND DATED 13.03.2024 ISSUED UNDER

EXHIBIT P3 NOTICE FOR PENALTY DATED 13.03.2024 ISSUED UNDER