Petitioner who failed to respond to notices cannot complain violation of principles of natural justice

The Kerala High Court, in matter of THYAGARAJAN PARAMESWARAN Vs. INCOME TAX OFFICER, has ordered that the Petitioner who failed to respond to notices cannot complain violation of principles of natural justice.

Key Points about the order:

The present writ petition has been filed by the petitioner-assessee under the provisions of the Income Tax Act, 1961 (“IT Act”, for short) impugning the assessment order dated 22.4.2021, Ext.P2, for the assessment year 2018-19 and penalty orders, Exts.P3 and P4. Mainly two grounds have been urged while impugning the aforesaid orders:

(i) the assessment order was finalised beyond the limitation prescribed under Section 153 of the IT Act, in as much as the assessment order is dated 22.4.2021 while the limitation for finalising the assessment was on 30.9.2020; and

(ii) the petitioner was given only three days time vide the show cause notices dated 9.4.2021 and 17.4.2021, Exts.P8 and P9.

The assessment order is dated 22.4.2021 and therefore, the impugned assessment order is within the limitation as extended by the first notification dated 27.2.2021, i.e. up to 30.4.2021. Hence, in view of the notification No.S.O.966(E) dated 27.2.2021, It is found that no substance in the submission of the learned counsel for the petitioner that the impugned assessment order is beyond the limitation prescribed under the statute.

Show cause notice under Section 144 of the IT Act dated 9.4.2021, Ext.P8, was issued to the petitioner. The said show cause notice would also mention the clear dates, when the notices were issued to the petitioner under Section 142(1). Vide the said show cause notice, the petitioner was granted time for filing his response till 12.4.2021. The petitioner did not file any reply to the said show cause notice. Another show cause notice dated 17.4.2021, Ext.P9, was also issued to the petitioner putting him on notice that, in case the petitioner failed to respond to the notice, his income would be assessed under Section 144 on the basis of the materials available before the assessing authority.

By the said show cause notice dated 17.4.2021, the petitioner was afforded opportunity to file response till 20.4.2021. There is nothing on record to show that the petitioner applied for extension of time to file reply to the aforesaid two show cause notices, Exts.P8 and P9. The petitioner was issued as many as eight notices under Section 142(1) of the IT Act, before issuing the show cause notices. All the notices remain unanswered. Therefore, at this stage, the petitioner cannot take the ground that the petitioner was not afforded sufficient opportunity for filing reply to the show cause notices issued under Section 144 or to the notices under Section 142(1). It would have been a different case, if the petitioner asked for more time to file reply to the show cause notices in Exts.P8 and P9 and the Authority denied the same. The petitioner did not respond to the said notices at all.

In view thereof, It is found that there has been substantial compliance of the principles of natural justice. Since the petitioner failed to respond to any one of the eight notices issued under Section 142(1) and two show cause notices issued under Section 144 of the IT Act, he cannot complain about violation of the principles of natural justice.

It is found that no merit in the present writ petition, which is hereby dismissed.

Pending interlocutory application, if any, in the present writ petition stands dismissed.

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