Case Law Details
A. E. Varghese Vs CIT (Kerala High Court)
Introduction: The Kerala High Court recently dismissed a writ petition filed by A. E. Varghese challenging an Income Tax notice. The petitioner contested the order passed under Section 250 of the Income Tax Act, 1961, related to the assessment year 2015-16. This article provides an in-depth analysis of the court’s decision and the key arguments presented during the hearing.
Detailed Analysis: The crux of the petitioner’s argument rested on the alleged non-receipt of notice for the appeal hearing. Despite providing a postal address for their counsel, the petitioner claimed neither the counsel nor they received any intimation. The court, however, refuted this, emphasizing the automated system in place. Notices were not only uploaded on the portal but also sent via email and SMS alerts in real-time, using the details provided by the assessee.
The assessment order revealed a significant cash deposit in the petitioner’s savings accounts, leading to an addition of Rs.53,03,000 as income due to the failure to prove the source. The dismissal of the writ petition was grounded in the court’s belief that the petitioner’s argument lacked substance.
While the petitioner’s appeal was rejected, the court granted the option to seek remedy before the Income Tax Appellate Tribunal (ITAT) within three weeks. The ITAT was instructed to consider the appeal promptly, bypassing discussions on the question of limitation.
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