Kasturi Vs ITO (Madras High Court)
Madras High Court has set aside an order issued by the Income Tax Officer (ITO) against a petitioner identified as Kasturi, remanding the case for fresh consideration. The court’s decision, dated December 16, 2024, came after the petitioner argued that crucial supporting documents were not submitted with their initial reply to a show cause notice due to their unavailability at the time.
The dispute began with a show cause notice issued by the respondent on November 26, 2024. Kasturi submitted a reply on December 3, 2024. However, the petitioner’s counsel informed the High Court that this reply lacked supporting documents because they were not available when the response was filed. Consequently, the impugned order was passed by the ITO on December 16, 2024.
During the High Court proceedings, Kasturi’s counsel requested an additional opportunity to file a comprehensive reply with all relevant documents. In response, the Senior Standing Counsel for the respondent argued that the petitioner had already been granted sufficient opportunities but had failed to submit the necessary documents, justifying the ITO’s decision to proceed with the impugned order.
After reviewing the submissions and available records, the High Court determined that, in the interest of justice, providing another opportunity to the petitioner was “just and necessary.” The court acknowledged the petitioner’s claim regarding the non-availability of documents at the time of the initial reply.
