Sankaran Mekala Vs ITO (Madras High Court)
Summary: The writ petition was filed by Sankaran Mekala challenging the impugned demand order dated 16.07.2026 issued under sections 147, 271(1)(b) and 271(1)(c) of the Income Tax Act, 1961 for Assessment Year 2015-16. The petitioner sought quashing of the demand and a direction to reopen the income-tax e-filing portal so that she could file her return in accordance with an earlier order of the Madras High Court dated 09.02.2026 in W.P. No.1242 of 2026.
The petitioner submitted that she had earlier challenged the assessment order dated 16.01.2024 and notice dated 12.04.2022 in W.P. No.1242 of 2026. That writ petition was disposed of on 09.02.2026 with a direction to the petitioner to file the return of income for AY 2015-16 and reply to the notice issued under section 148. The petitioner complied with the direction to the extent of depositing Rs.5 lakhs, but was unable to upload the return because of technical issues with the income-tax portal. She therefore sought another opportunity to comply with the earlier order.
The Revenue accepted notice. The petitioner placed before the Court proof of the Rs.5 lakh deposit made pursuant to the earlier order and evidence of various documents filed by her. She also produced a screenshot showing that she had been unable to upload the return of income on the portal.
The High Court held that, in these circumstances, the interest of justice required that the petitioner be provided an opportunity to file the return. The Court accordingly disposed of the writ petition by setting aside the impugned demand notice dated 16.07.2026.
The respondent was directed to take necessary steps to provide the petitioner access to the income-tax portal for uploading the return for AY 2015-16. The petitioner was directed to file the return within three weeks from receipt of a copy of the order. Thereafter, the respondent was directed to conclude the assessment by issuing an assessment order within six weeks from receipt of the return, after providing a reasonable opportunity to the petitioner. The connected miscellaneous petitions were closed and there was no order as to costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
1. A communication demanding payment of tax and penalty in terms of earlier assessment order dated 16.01.2024 is assailed in this writ petition.
2. Learned counsel for the petitioner submits that W.P.No.1242 of 2026 was filed earlier by the petitioner challenging the assessment order dated 16.01.2024 and notice dated 12.04.2022. He also points out that said writ petition was disposed of on 09.02.2026 directing the petitioner to file return of income for the assessment year 2015-2016 and reply to the Section 148 notice. While the petitioner was able to deposit the sum of Rs.5 lakhs, as directed by said order, he submits that the petitioner was unable to upload the return of income due to technical issues in the portal. Therefore, he seeks another opportunity.
3. Ms.Sheela, learned Senior Standing Counsel and Mr.H.Siddarth, learned Junior Standing Counsel, accept notice for the respondent.
4. The petitioner has placed on record the proof of deposit of the sum of Rs.5 lakhs in compliance with the earlier order. There is also evidence that the petitioner filed various documents. As regards the return of income, the petitioner has placed on record the screenshot indicating that he was unable to upload said return of income. Therefore, the interest of justice requires that an opportunity be provided to the petitioner.
5. For reasons aforesaid, this writ petition is disposed of on the following terms:
5.1 impugned demand notice dated 16.07.2026 is set aside;
5.2 The respondent is directed to take necessary steps to provide access to the portal to the petitioner for purposes of uploading the return of income for the assessment year 2015-2016;
5.3 The petitioner is directed to file return of income within three weeks from the date of receipt of a copy of this order;
5.4 The respondent is directed to conclude the assessment by issuing an assessment order within six weeks from the date of receipt of the return of income after providing a reasonable opportunity to the petitioner.
Consequently, connected miscellaneous petitions are closed. There shall be no order as to costs.
