Case Details: Synthite Industries (P.) Ltd. vs. Additional/Joint/Deputy/Assistant Commissioner Of Income Tax/Income Tax Officer, National E-Assessment Centre, New Delhi - [2025] 175 taxmann.com 257 (Kerala)
Judiciary and Counsel Details
- Dr. A.K. Jayasankaran Nambiar & Easwaran S., JJ.
- Abraham Joseph Markos, Alexander Joseph Markos, Isaac Thomas, Sharad Joseph Kodanthara & V. Abraham Markos, Advs. for the Petitioner.
- Jose Joseph, Adv. for the Respondent.
Facts of the Case
The Principal Commissioner passed an order under section 263 and directed a reassessment concerning the specific issues mentioned therein. The Assessing Officer (AO) issued a show cause notice to the assessee regarding five issues that were directed to be re-examined by the Commissioner. However, the time granted to the assessee to respond to the five issues was insufficient.
Therefore, the assessee approached the High Court, challenging the assessment order. The High Court set aside the assessment order and directed the AO to redo the assessment process after permitting the assessee to show cause meaningfully.
Thereafter, the AO issued a show cause notice covering almost forty-seven issues. The aggrieved assessee filed a writ petition to the Kerala High Court.
High Court Held
The High Court held that it was trite that when an AO proceeds to re-do an assessment under an order passed by the Principal Commissioner under section 263, the fresh order to be passed by the AO has necessarily to be confined to the points specified in the order of the Principal Commissioner. Therefore, the AO initially issued a show cause notice limiting the proposal to only the five issues enumerated in the order of the Principal Commissioner.
Merely because the assessee had impugned the assessment order that was subsequently passed under the said show cause notice, and the High Court had set aside the said assessment order on the ground of violation of the principles of natural justice, it was not open to the AO to now enlarge the scope of the inquiry to issues other than what was expressly covered by the earlier notice.
Therefore, the writ petition was allowed, and the notice issued by the AO was quashed.
List of Cases Reviewed
- Single Judge of Kerala High Court in W.P.(C) No.5229 of 2024, dated 9-2-2024 [para 7] reversed
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