Senthurpandi Pathirakali Muthu Vs ITO (Madras High Court)
The case of Senthurpandi Pathirakali Muthu vs. ITO (Madras High Court) revolves around the challenge against notices issued by the Income Tax Department regarding outstanding tax for the assessment year 2017-18. The petitioner, an assessee, was directed to pay Rs. 17,11,240 based on an assessment order dated 12.04.2023. Despite appealing the order, it was confirmed by the Appellate Authority on 04.10.2023. The petitioner did not contest these orders but challenged the demand notice, alleging a lack of fair opportunity during assessment and appeal proceedings.
The crux of the petitioner’s argument lies in the purported absence of a fair opportunity during the assessment and appeal stages. However, the petitioner did not contest the orders themselves, which attained finality post the dismissal of the appeal. Consequently, the Income Tax Department issued a demand notice for the outstanding tax amount for the said assessment year.
The High Court’s decision rests on the principle that once an assessment order attains finality, the taxpayer is obligated to pay the assessed tax amount. Despite the petitioner’s contentions regarding procedural fairness, the court found no merit in challenging the demand notice for payment. Essentially, the court held that the petitioner’s failure to challenge the assessment and appeal orders precluded them from contesting the demand notice issued subsequently.
