Case Law Details
Mukundan Vijayan Vs ITO (Madras High Court)
Introduction: In a recent case of Mukundan Vijayan Vs. ITO, the Madras High Court addressed allegations of illegal adjustments in tax refunds by the Income Tax Department. The petitioner sought relief regarding refund amounts due for the assessment year 2007-2008. Let’s delve into the detailed analysis of this judgment.
Detailed Analysis: The petitioner, an individual assessee, had filed the return of income for the assessment year 2007-2008. Despite the resolution of assessment proceedings under the Direct Tax Vivad Se Vishwas Act, 2020, the refund due to the petitioner remained unpaid. The crux of the petitioner’s contention was the unauthorized adjustments made against alleged arrears from previous assessment years. The respondent argued that these adjustments were made by the CPC due to outstanding amounts from the petitioner in earlier assessment years.
The Madras High Court, after considering the arguments, directed the petitioner to submit a consolidated grievance petition to the jurisdictional assessing officer. This petition would cover not only the assessment year 2009-2010 but also other years for which adjustments were made. The assessing officer was instructed to consider the petition, provide a reasonable opportunity for the petitioner’s defense, and dispose of the grievance within two months.
Conclusion: The judgment in Mukundan Vijayan Vs. ITO highlights the importance of due process in tax matters. It underscores the need for taxpayers to have avenues to address grievances regarding adjustments made by tax authorities. By directing the submission of a consolidated grievance petition and ensuring a fair hearing, the Madras High Court has upheld principles of justice and fairness in tax administration.
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