Krishnamoorthy Packiyalakshmi V. Income Tax Officer

WP(MD)/6598/2020

AI Insights

The case involves Krishnamoorthy Packiyalakshmi, the petitioner, who challenged an assessment order issued by the Income Tax Officer, Ward 1 (2) Trichy, dated 24.12.2019. The petitioner argued that the order was passed without adequate opportunity to respond to a show cause notice dated 16.12.2019 and claimed that the income from certain transactions during the demonetization period should not be taxed as it was reported and VAT was paid. The respondent countered that the petitioner failed to respond to the notices adequately and that the petition was filed beyond the statutory period for appeal. The court dismissed the petition, emphasizing the availability of an appellate remedy and the expiration of the appeal period.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 672547 (HC-MADURAI)
• Appeal Type: Others
• Pronouncement Date: 17-02-2022
• Assessment Year: misc
• Other Referred Cases: Principal Commissioner of Income Tax and others vs. L.G. Electronics India Private Limited [2018 (18) SCC 447]
• Laws Referred To: Article 226 of The Constitution of India, Section 246-A of the Income Tax Act, Section 220(6) of the Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: N DILIP KUMAR
• Assessee Lawyers: S KARUNAKAR
• Keywords: Assessment Order; Demonetized currency; Natural Justice; Show cause notice; Value Added Tax; Writ of Certiorarified Mandamus
• Section: 144; 220(6); 246 A

Judgement Text

"Writ Petition (MD) No.6598 of 2020 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 17.02.2022 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN Writ Petition (MD) No.6598 of 2020 and W.M.P.(MD)No.5950 of 2020 Krishnamoorthy Packiyalakshmi ... Petitioner Versus The Income Tax Officer, Ward 1 (2) Trichy, Income Tax Department, 2nd Floor, Trichy Main Building, Williams Road, Cantonment, Tiruchirappalli - 620001. ... Respondent PRAYER : Petition filed under Article 226 of The Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for the records in ITBA/AST/S/144/2019-20/1023036756(1), dated 24.12.2019, on the file of the respondent, quash the same as it is arbitrary, unreasonable and is against the principles of natural justice and direct the respondent to pass assessment order afresh after giving an opportunity of personal hearing to the petitioner. For Petitioner : Mr.S.Karunakar, Advocate For Respondent : Mr.N.Dilipkumar Senior Standing Counsel ORDER The petitioner has challenged the impugned assessment order dated 24.12.2019 on the ground that the impugned order has been passed without giving adequate opportunity to the petitioner to give reply to the show cause notice dated 16.12.2019. 2.It is the case of the petitioner that the petitioner had maintained proper books of accounts and had filed returns in time and had offered the correct income for tax. 3.The learned counsel for the petitioner submits that between 08.11.2016 and 30.12.2016, some of the petitioner's customers have deposited demonetized currency to the account of the petitioner, as a result of which, the respondent issued a show cause notice for the Assessment Year 2017-2018 [previous year 2016-2017] and had confirmed the tax and interest of Rs.11,19,994/-. 4.The learned counsel for the petitioner further submits that the aforesaid amount cannot be taxed. The learned counsel for the petitioner also submits that the petitioner has also maintained 1/3 https://hcservices.ecourts.gov.in/hcservices/ Writ Petition (MD) No.6598 of 2020 proper books of accounts and also has paid Value Added Tax on the transaction. 5.Opposing the prayer, the learned Senior Standing Counsel for the respondent submits that the Writ Petition is without merits and the petitioner ought to have filed statutory appeal under Section 246-A of the Income Tax Act. It is further submitted that the petitioner was issued with show cause notice on 16.12.2019 and that even prior to 16.12.2019, a notice was issued to the petitioner. However, the petitioner failed to avail the opportunity and therefore, the impugned order has been passed based on the available materials. 6.The learned Senior Standing Counsel for the respondent further submits that there is no dispute that the petitioner had deposited a sum of Rs.8,95,000/- on various dates during the period in dispute, for which, no tax was offered by the petitioner. 7.I have heard the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondent. 8.Prima facie, I do not find any reason to interfere with the impugned order in the Writ Petition. The petitioner has an alternate remedy by way of appeal before the Appellate Commissioner. However, the petitioner has filed the Writ Petition i.e., on 23.03.2020, after allowing the period of limitation prescribed under Section 246-A of the Income Tax Act, to expire. 9.Therefore, without expressing any opinion as to which the petitioner has a good case on merits or not, I am inclined to dismiss this Writ Petition with liberty to the petitioner to file an appeal before the Appellate Commissioner under Section 246-A of the Income Tax Act, within 30 days from the date of receipt of a copy of this order. Needless to state that it is open to the petitioner to move an appropriate application under Section 220(6) of the Income Tax Act before the respondent, who shall pass appropriate orders on merits and in accordance with law taking note of the decision of the Hon'ble Supreme Court in Principal Commissioner of Income Tax and others vs. L.G. Electronics India Private Limited [2018 (18) SCC 447]. If such appeal is filed, the appellate Commissioner shall take up the same and dispose it on merits and in accordance with law, within a period of three months from the date of receipt of a copy of this order. If appropriate application under Section 220(6) of the Income Tax Act is made before the respondent within 30 days, appropriate orders shall be passed in accordance with law. 2/3 https://hcservices.ecourts.gov.in/hcservices/ Writ Petition (MD) No.6598 of 2020 10.This Writ Petition stands dismissed with the above observation. No costs. Consequently, connected Miscellaneous Petition is closed. Sd/- Assistant Registrar (CS-III) // True Copy // / /2022 Sub Assistant Registrar(CS) To The Income Tax Officer, Ward 1 (2) Trichy, Income Tax Department, 2nd Floor, Trichy Main Building, Williams Road, Cantonment, Tiruchirappalli - 620001. +1 CC to M/s.N.DILIPKUMAR, Advocate ( SR-7226[F] dated 18/02/2022 ) +1 CC to M/s.S.KARUNAKAR, Advocate ( SR-7584[F] dated 21/02/2022 ) WP (MD) No.6598 of 2020 17.02.2022 RS(25.02.2022) 3P-4C 3/3 https://hcservices.ecourts.gov.in/hcservices/ "