Madras High Court
L.Sekar … vs The Principal Commissioner Of ... on 23 April, 2021
W.P. No.1232 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23.04.2021
CORAM
THE HONOURABLE DR. JUSTICE ANITA SUMANTH
W.P. No.1232 of 2020 and
WMP.No.1490 of 2020
L.Sekar …Petitioner
Vs.
1.The Principal Commissioner of Income Tax,
Ministry of Finance,
Income Tax Department,
121, Mahatma Gandhi Road,
Nungambakkam, Chennai-600 034.
2.The Assessment Officer/Income Tax Officer,
Ward 2, Tiruvannamalai,
Income Tax Department,
Tiruvannamalai District. …Respondents
Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to
Writ of Certiorari, to call for the entire records pertaining the impugned exparte best
judgment assessment for the assessment year 2017-2018 under Section 144 of the
Income Tax Act dated 8.12.2019 vide Order No.ITBA/AST/S/144/2019-
20/1021904454(1) on the file of the 2nd respondent and quash the same as arbitrary,
1
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W.P. No.1232 of 2020
against the principles of natural justice and total inconfirmity with the provisions of
the Income Tax Act.
For Petitioner : No Appearance
For Respondents : Mr.ANR.Jayaprathap
Junior Standing Counsel
*********
ORDER
The challenge in this writ petition is to an order of assessment dated
08.12.2019 passed under Section 144 of the Income Tax Act, 1961 (in short 'Act')
for assessment year (AY) 2017-18. The sum and substance of the challenge is the
violation of principles of natural justice and denial of any opportunity having been
given to the petitioner prior to framing of assessment.
2. The petitioner has not filed a return of income in this matter within time.
Thus, a notice under Section 142(1) of the Act has been issued which, as per
paragraph-3 of the affidavit filed in support of the writ petition, has been uploaded
in the income tax portal and has been duly noticed by the petitioner. The notice
dated 30.11.2017 called for a return of income to be filed on or before 30.12.2017.
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W.P. No.1232 of 2020
However, despite noticing the communication dated 30.11.2017, the return was filed
by the petitioner only on 13.08.2019, belatedly.
3. Thereafter, summons under Section 131 appears to have been issued in
response to which the petitioner has appeared and deposed before the officer on
16.09.2019. A show cause notice was issued on 20.05.2019. According to counter,
the aforesaid show cause notice has been issued by Registered post with
acknowledgment due, received and acknowledged by one Lalitha on 25.05.2019.
4. Records of assessments were called for to establish the veracity of service
of notice. The records are in possession of the learned Standing Counsel at the time
of hearing of this matter.
5.The contention of the petitioner to the effect that no show cause notice was
issued prior to completion of assessment is thus found to be factually incorrect. A
copy of the show cause notice along with acknowledgment has been placed on file
and is extracted below:
'GOVERNMENT OF INDIA
MINISTRY OF FINANCE, INCOME TAX DEPARTMENT
OFFICE OF THE INCOME TAX OFFICER, WARD-2, THIRUVANNAMALAI
No.25, VALAYALKARA STREET, TIRUVANNAMALAI.
(Tele.No.:04175-252616; Email:[email protected])
C.No.OCM/AZLPS3227K/2017-18/W2-TVM Date:20.05.2019
https://www.mhc.tn.gov.in/judis/
W.P. No.1232 of 2020
To
SEKAR
NO.10, NARAYANAN STREET,
KOSAPALAYAM, ARNI-632 301
Sir/Madam,
Sub: Hearing Notice – in our own case – for AY 2017-18 – Regarding.
*****
A notice u/s 142(1) was issued for the assessment year 2017-18 on
11/30/2017. Since, the Return of Income for A.Y. 2017-18 was not filed, till that
date, despite the transactions undertaken by you during the F.Y. 2016-17, more
particularly that of the cash deposit made in the bank account held by you during
the Demonetization period establishes the fact that you possess taxable income.
The Notice u/s 142(1) was left unheeded, even though a statutory notice
mandates utmost compliance. Since you had failed to comply with the provisions of
all the terms of the notice issued under Sub-section (1) to Section 142, as per the
provisions of Section 144(1)(b), the undersigned is compelled to make an
assessment, as the best judgment assessment u/s 144 after taking into account all
materials which have been gathered during the course of inquiry and other records
available in the possession of the undersigned. This notice under First Proviso to
Section 144(1), is therefore directed to requisition, counter arguments and facilitate
an opportunity of being heard before determining the total income to the best of the
judgment of the undersigned and determine the sum payable by you on the basis of
such assessment.
You are required to respond to this notice within 07 days from the receipt of
the notice. Failing which it would be construed that you do not have any rebuttal or
counter-arguments against the same and the income quantified based on these
information gathered from the materials as above will be assessed u/s 144(1) of the
IT Act, 1961.
(POORAN CHAND MEENA)
Income Tax Officer
Ward-2, Thiruvannamalai.
6. The petitioner refers to a snap shot of the E-portal contending that does not
refer to show cause notice dated 20.05.2019. This would, at best, amount to a
technical error and will not vitiate the assessment itself for the reason that the show
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W.P. No.1232 of 2020
cause notice has been manually issued and proof of service of the same is also
available on record.
7.The challenge to the assessment thus fails as no ground is made out to
interfere with the impugned order in terms of Article 226 of the Constitution of
India. This writ petition is dismissed. Connected miscellaneous petition is closed.
No costs.
23.04.2021
vs
Index: Yes
Speaking order
To
1.The Principal Commissioner of Income Tax,
Ministry of Finance,
Income Tax Department,
121, Mahatma Gandhi Road,
Nungambakkam, Chennai-600 034.
2.The Assessment Officer/Income Tax Officer,
Ward 2, Tiruvannamalai,
Income Tax Department, Tiruvannamalai District.
https://www.mhc.tn.gov.in/judis/
W.P. No.1232 of 2020
DR. ANITA SUMANTH, J.
vs
W.P. No.1232 of 2020 and
WMP.No.1490 of 2020
23.04.2021
https://www.mhc.tn.gov.in/judis/
