Kerala High Court Quashes Income Tax Appellate Order Against AMMA, Directs Fresh Consideration

Justice Ziyad Rahman A A, observed that the Commissioner of Income Tax (Appeals) erred by rejecting AMMA's appeal solely on the ground of non-appearance, without addressing the merits of the case as mandated under Section 250(6) of the Income Tax Act, 1961.

The writ petition was filed challenging the appellate order (Ext.P2) upholding an assessment for the year 2014–2015 of the Petitioner Association. 

The Counsel for the petitioner submitted that a writ under Article 226 of the Constitution of India was filed instead of challenging the appellate order by resorting to the statutory remedy since the order was passed in violation of the statutory stipulations under Section 250(6) of the Income Tax Act, as it was rejected solely on the reason of non-appearance by the petitioner.

The Court observed that the appellate authority did not touch upon the merits of the contentions in the appeal and have simply extracted the findings of the assessing authority against the grounds raised in appeal.

The Court further observed that as per the Section 250(6), there is a statutory mandate while disposing of appeal, that such order shall be in writing and shall state points for determination and the reason for such decision.

“Thus, when the statutory provisions specifically contemplate for passing an order that contains the decision with the reasons for decision, mere act of extracting the findings of the assessing authority, by itself, cannot be treated as a proper compliance of the statutory stipulations in the said provisions.” the bench observed.

Referring to its earlier decision in Anandan N. v. Commissioner of Income Tax (Appeals) [2025] 175 taxmann.com 408 (Ker), where a similar defect led to judicial interference. The Court quashed the order by the appellate authority and directed the appellate authority to reconsider the appeal and pass fresh orders after providing an opportunity to the petitioner to be heard.

Case Title: M/S Association of Malayalam Movie Artists (AMMA) v Commissioner of Income Tax

Case No: WP(C) 39703/ 2025

Citation: 2025 LiveLaw (Ker) 714

Counsel for Petitioner: K Srikumar (Sr.), Ammu Charles, S A Mansoor, K Manoj Chandran