Case Law Details
Jaganathan Bhaarath Vs ACIT (Madras High Court)
Introduction: In a recent judgment, the Madras High Court addressed the case of Jaganathan Bhaarath vs. ACIT, setting aside an order dated 30.07.2022 and its consequential notice. The petitioner challenged a notice under Section 148 of the Income Tax Act, 1961, pertaining to an alleged escaped assessment for the Assessment Year 2013-14. The court’s decision revolved around discrepancies in the acknowledgment of the petitioner’s replies, emphasizing the need for accurate administrative processes.
Background: The petitioner received a notice under Section 148 and, following directions from the Supreme Court in Union of India v. Ashish Agarwal, [2022] 444 ITR 1 (SC), responded on 23.05.2022. Despite submitting replies physically on 01.06.2022 and 02.06.2022, the impugned order incorrectly stated that the petitioner had not replied to the notice. This discrepancy formed the basis of the petitioner’s challenge.
Court’s Analysis: The respondent’s counsel acknowledged the need for proceedings in the case of escaped assessment but agreed to remand the matter for reconsideration of the petitioner’s objections. The court scrutinized the documents on record, which included the petitioner’s replies with acknowledgments from the Income Tax Office. The court found that the impugned order’s conclusion about the petitioner not filing a reply was inconsistent with the documented evidence, rendering the order unsustainable.
Court’s Decision: In light of the administrative error, the court allowed the writ petition, quashing the impugned order and related notices. The matter was remanded to the Assessing Officer, with directions to consider the objections filed by the petitioner on 01.06.2022 and 02.06.2022. The Assessing Officer was instructed to provide a reasonable opportunity to the petitioner and complete the reconsideration process within 12 weeks from the date of receiving a copy of the court’s order. The connected miscellaneous petitions were closed, and no costs were imposed.
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