Case Law Details
Jothiramalingam Sangeetha Vs ITO (Madras High Court)
Introduction: The case of Jothiramalingam Sangeetha vs. Income Tax Officer (ITO) before the Madras High Court revolves around a writ petition challenging an order issued under section 148A(d) of the Income Tax Act. The order proposed to initiate re-assessment proceedings for the Assessment Year (AY) 2015-16. The petitioner contests the order along with a show cause notice, arguing that her income was below the taxable threshold, and hence, she was not obligated to file an income tax return.
Factual Background: The petitioner claimed to have sold her land for Rs. 40 lakhs, while the market value in the sale deed was mentioned as Rs. 51 lakhs. Her contention was that after deducting the cost of acquisition and expenses related to the property transfer, the taxable income was less than the threshold, relieving her from the obligation to file an income tax return. The show cause notice from the respondent questioned the potential escapement of income for AY 2015-16.
Petitioner’s Response: In response to the show cause notice, the petitioner submitted a reply stating that she had not sold any property for Rs. 51,00,000. She argued that even if she had sold a property for that amount, the income, after deducting the cost of purchase, brokerage charges, and development costs, would be less than Rs. 50 lakhs.
Impugned Order and Jurisdictional Challenge: Despite the petitioner’s reply, the respondent issued an order under section 148(A)(d) and a notice proposing to reassess the petitioner’s income for AY 2015-16. The petitioner contested the jurisdiction of the officer, claiming that the income did not cross the Rs. 50 lakhs threshold, and thus, the officer had no authority to issue the order and notice.
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