Case Law Details
Jagadeesan Chellappan Achary Vs Income Tax Officer (Kerala High Court)
The case of Jagadeesan Chellappan Achary vs. Income Tax Officer before the Kerala High Court involved a senior citizen who received a notice under Section 148 of the Income Tax Act, 1961, for the assessment year 2013-14, as the Income Tax Officer believed that the petitioner’s income had escaped assessment.
The petitioner, a practicing Advocate, was further served with a notice under Section 142(1) of the Act, stating that he had received a total interest income of Rs. 75,73,122/- and total professional income of Rs. 4,000/- during the financial year 2012-13. The petitioner was directed to produce books of accounts, details of source of income, bank account statements, and income tax returns for the assessment year 2013-14 corresponding to the financial year 2012-13.
The petitioner’s counsel argued that the reported interest income of Rs. 75,73,122/- was a mistake made by the bank, which was later rectified. The bank issued a letter confirming the rectification, and Form 26AS was also corrected accordingly. Despite this communication, the assessment order (Exhibit P-2) was completed, and the petitioner’s rectification application was rejected on the grounds that an appeal had been filed.
Considering the evidence provided by the bank’s letter and the corrected Form 26AS (Exhibit P-9 and P-10), which indicated that no TDS was deposited by the bank and no interest income accrued to the petitioner, the court directed the Faceless Appellate Centre to expedite the petitioner’s appeal (Exhibit P-11). The court instructed the appellate authority to consider the modified Form 26AS while disposing of the appeal and ordered that no coercive measures be taken against the petitioner for enforcing the tax demand until the appeal was decided.
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