M/s. Senthil Murugan Jewellers, V. The Assistant Commissioner of Income Tax Central Circle (1) Madurai,

WA(MD)/1009/2023

AI Insights

The case involves M/s. Senthil Murugan Jewellers, a partnership firm engaged in the jewelry business, which faced a search by the Income Tax Department. During the search, software named 'J Pack' and a ledger called 'PANDU MD' were discovered, indicating unaccounted transactions. The Department issued an order based on these findings, which the appellant challenged through writ petitions that were dismissed. Subsequently, the appellant filed writ appeals without first utilizing the available appeal remedies under the Income Tax Act. The court, while dismissing the appeals on the grounds of lack of merit, directed that the appellant be given an opportunity to cross-examine the third parties involved in the case during the appellate proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 763423 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 24-03-2025
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: N DILIP KUMAR
• Assessee Lawyers: A THIAGARAJAN
• Keywords: Cross Examination; Cross-examination; Income Tax; Unaccounted transactions; Writ Appeals
• Section: 15

Judgement Text

"W.A.(MD)Nos.1009 to 1012 of 2023 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 24.03.2025 CORAM: THE HON'BLE MRS JUSTICE J. NISHA BANU AND THE HON'BLE MRS JUSTICE S.SRIMATHY W.A.(MD)Nos.1009 to 1012 of 2023 and C.M.P.(MD)Nos.7781, 7782, 7784 and 7783 of 2025 M/s.Senthil Murugan Jewellers, Rep.by its Partner Pandurengan, 253-A, 254, 255, West Mari Street, Madurai-625 001. ...Appellant in all appeals -Vs- The Assistant Commissioner of Income Tax Central Circle (1) Madurai, Office of Assistant Commissioner of Income Tax, Central Circle (1), Income Tax Tariff Complex, Kulamangalam Road, Meenambalpuram, Madurai-625 002. ...Respondents in all appeals COMMON PRAYER: Writ Appeals are filed under Clause 15 of the Letters Patent Act, to set aside the final order dated 17.04.2023 passed in W.P.(MD)Nos. 8706 to 8709 of 2023 by this Court. In all appeals: For Appellant : Dr.A.Thiagarajan, Senior Counsel for Mr.S.Karunakar 1/4 https://www.mhc.tn.gov.in/judis W.A.(MD)Nos.1009 to 1012 of 2023 For Respondent : Mr.N.Dilip Kumar Standing Counsel COMMON JUDGMENT (Judgment of the Court was made by J.NISHA BANU, J.) These Writ Appeals are filed against the orders of this Court, dated 17.04.2023 in W.P.(MD)Nos.8706 to 8709 of 2023. 2.The appellant in all these writ appeals is a partnership firm doing jewelry business. In a search that was conducted by the respondent Department, it was found that the appellant is using a software called 'J Pack' for recording unaccounted gold and cash transactions and a ledger named “PANDU MD” was also recovered. The respondent after investigation has issued an order stating that the said ledger relates to the appellant firm for the unexplained cash transactions. The writ petitions challenging the said order were dismissed by this Court. Hence, this writ appeals are filed. 3.Perusal of the orders passed in the Writ Petitions show that the learned Single Judge after having elaborately discussed the matter, dismissed the writ petitions directing the writ petitioner to avail the appeal remedy available to him under the provisions of the Income Tax Act. However, the appellant without 2/4 https://www.mhc.tn.gov.in/judis W.A.(MD)Nos.1009 to 1012 of 2023 availing the said appeal remedy, has filed the present writ appeals. Hence, this Court is of the view that these writ appeals are devoid of merits. 4.At this point, the learned counsel for the appellant submits that the appellant has not been given an opportunity of cross examining the third parties, on basis of whose documents and software, the orders impugned in the writ petitions were passed. 5.Considering the said submission, this Court directs the appellate authority to give an opportunity of cross examining the third parties to the petitioner in the appeal proceedings. 6.These Writ Appeals are disposed of with the above direction. No costs. Consequently, connected miscellaneous petitions are closed. (J.N.B.,J.) (S.S.Y.,J.) 24.03.2025 Index : Yes/No Internet : Yes/No ta 3/4 https://www.mhc.tn.gov.in/judis W.A.(MD)Nos.1009 to 1012 of 2023 J. NISHA BANU,J. and S.SRIMATHY.J ta To The Assistant Commissioner of Income Tax Central Circle (1) Madurai, Office of Assistant Commissioner of Income Tax, Central Circle (1), Income Tax Tariff Complex, Kulamangalam Road, Meenambalpuram, Madurai-625 002. W.A.(MD)Nos.1009 to 1012 of 2023 24.03.2025 4/4 https://www.mhc.tn.gov.in/judis "