Dr. Kaliyappu and M. Christinal V. The Income Tax Officer Ward I (1), Karaikudi

WP(MD)/12121/2014

AI Insights

The case involves two writ petitions filed by Dr. Kaliyappu and M. Christinal against the Income Tax Officer, challenging notices issued for non-compliance with income tax assessment procedures for the year 2009-10. The petitioners argued that they had submitted all necessary records to the tax authorities. However, the court found that the petitioners were still required to provide additional information as requested under Section 143(2) of the Income Tax Act, despite their ongoing civil litigation with their power of attorney holder. The court dismissed the petitions, directing the petitioners to comply with the tax authorities' requests.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 683161 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 24-07-2014
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 144 of Income Tax Act, Section 148 of the Income Tax Act, Section 143(2) of the Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: R KRISHNAMOORTHY
• Assessee Lawyers: ARUN ARUNACHALAM
• Keywords: Civil Litigation; Income tax assessment; Income Tax Return; Permanent Account Number; Power of attorney; Writ of Certiorarified Mandamus
• Section: 148; 144; 143(2)

Judgement Text

"1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 24.07.2014 CORAM: THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.(MD) Nos.12121 and 12122 of 2014 Dr.Kaliyappu ... Petitioner in W.P.No.12121/14 M.Christinal ... Petitioner in W.P.No.12122/14 Vs. The Income Tax Officer Ward I (1), Karaikudi, Arunachalam Chettiar Streetm, Sekkalai, Karaikudi - 2, Sivagangai District. ... Respondent Prayer in W.P.No.12121 of 2014: Writ Petition is filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus calling for the records pertaining to the respondent in his proceedings P.A.No.ABQPK2355K dated 06.06.2014, quash the same and consequently restraining the respondent to take action against the petitioner under Section 144 of Income Tax Act and granting such other and further reliefs which this Court deems fit and proper in the circumstances of this case. Prayer in W.P.No.12122 of 2014: Writ Petition is filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus to call for the records pertaining to the respondent in his proceedings 50-C0cases/2013-14 dated 28.02.2014, quash the same and consequently restraining the respondent to take action against the petitioner under the Income Tax Act and granting such other and further reliefs which this Court deems fit and proper in the circumstances of this case. For Petitioners : Mr.Arun @ Arunachalam for M/s. Chettinad Legal Solutions For Respondent : Mr.R.Krishnamoorthy COMMON ORDER In the writ petition in W.P.No.12121 of 2014, the petitioner seeks for issuance of writ of Certiorarified Mandamus to quash the proceedings of the respondent in P.A.No.ABQPK2355K dated 06.06.2014 and consequential direction to the respondent to restrain to take action against the petitioner under Section 144 of Income Tax Act; In the writ petition in W.P.No.12122 of 2014, the petitioner seeks for issuance of writ of Certiorarified Mandamus to quash the proceedings in 50-C-cases/2013-14 dated 28.02.2014, and consequential direction to https://hcservices.ecourts.gov.in/hcservices/ 2 the respondent to take action against the petitioner under the Income Tax Act. 2. Heard Mr. Arun @ Arunachalam, learned counsel appearing for the petitioners and Mr.Krishnamoorthy, learned counsel appearing for the respondent. 3.By consent of both sides, the Writ Petitions are taken up for final disposal. 4. In the two writ petitions, the petitioners are husband and wife and they have challenged the notice issued by the respondent namely Income Tax Officer Ward I(1), Karaikudi dated 28.02.2014. By the said notice, the petitioners were informed that on a perusal of records revealed that the petitioners sold the immovable property through their power agent, which was registered on the file of the Joint Sub Registrar on 06.03.2009 and the market value of the property was shown as Rs.8,19,480/-. Through the said notice, the petitioners were directed to furnish the Permanent Account Number and to file the Income Tax return for the assessment year 2009-2010. 5. It is further seen that another notice was issued on 06.06.2014 stating that the petitioner sold the immovable property to the tune of Rs.17.48 lakhs during the previous year relevant to the assessment year 2009-10. Hence, notice under Section 148 of the Income Tax Act was issued on 27.02.2014 and there was no response and the petitioner was directed to file the return of income for the assessment year 2009-10 on or before 23.06.2014. 6. It is submitted by the learned counsel for the petitioners that thereafter, the petitioner along with their Chartered Accountant appeared before the authorities on 23.06.2014 and submitted all the necessary records. Thereafter, another notice has been issued under Section 143(2) of the Act calling upon the petitioner to furnish further information and to attend enquiry for which the petitioner has given a reply requesting the Assessing Officer to keep the proceedings pending since there is a litigation between the power agent and the seller. 7. The said request made by the petitioner is not tenable since the authority proposes to re-open the assessment under Section 148 of the Act and has issued notice under Section 143(2) of the Act calling for further information and the petitioners, who are the income tax assessees, are bound to furnish such information. The civil proceeding which is said to be pending between the petitioners and power of attorney holders and the relevance of the civil litigation to the Income Tax Assessment have to be considered by the assessing authority for which, the petitioners shall appear for enquiry. 8. Accordingly, the writ petitions cannot be entertained and the same are disposed of by directing the petitioners to appear either in person or through the authorized persons before the respondent and place all the documents and participate in the proceedings initiated under Section 143(2) of the Act. The petitioners shall appear before the respondent on or before 18.08.2014. The petitioners shall be afforded https://hcservices.ecourts.gov.in/hcservices/ 3 effective and reasonable opportunity to produce all necessary records in respect of their claim. Thereafter the respondent shall pass an order on merits and in accordance with law. No costs. Consequently, connected M.P.s are closed. Sd/- Assistant Registrar(R) /True Copy/ Sub Assistant Registrar To The Income Tax Ward I (1),Karaikudi, Arunachalam Chettiar Streetm,Sekkalai, Karaikudi - 2,Sivagangai District. +1cc to Mr.C.Arun @ Arunachalam Advocate, Sr.No. 41177 +2cc to Mr.R.Krishnamoorthy Advocate, Sr.No. 41437,41436 ses AA/01.08.2014/3p- 5c/ W.P.(MD) Nos.12121 and 12122 of 2014 24.07.2014 https://hcservices.ecourts.gov.in/hcservices/ "