Case Law Details
Organization for Eelam Refugees Rehabilitation Vs Assessment Unit (Madras High Court)
In the case of Organization for Eelam Refugees Rehabilitation vs Assessment Unit, the Madras High Court addressed a writ petition challenging a computation sheet dated March 9, 2024, and the accompanying notice of demand dated March 9, 2024.
The petitioner had initially filed their income tax return for the assessment year 2022-2023. Following this, they received an intimation under Section 143(1) of the Income Tax Act, 1961, wherein the return was processed, and the refund claim was accepted. Subsequently, the assessment was selected for scrutiny. As a result, an assessment order dated March 9, 2024, was issued, accepting the return of income and concluding that no additions were necessary. However, despite this conclusion, the petitioner was called upon to pay a sum of Rs. 5,04,29,383/- according to the computation sheet and demand notice, prompting the filing of the present writ petition.
During the hearing, the counsel for the petitioner drew attention to the assessment order, emphasizing that no additions were proposed concerning the return of income filed by the petitioner. They highlighted apparent errors in the computation sheet and notice of demand, which erroneously demanded the aforementioned sum.
On behalf of the respondents, Mrs. S. Premalatha, learned junior standing counsel, acknowledged the discrepancy between the assessment order and the impugned communications.
Upon reviewing the assessment order, the court noted that it clearly stated that no additions were being made in relation to the issues mentioned therein. In light of this, the demand outlined in the computation sheet and the notice of demand could not be upheld.
Consequently, the court allowed the writ petition, quashing the disputed computation sheet and the consequential notice of demand. No costs were awarded in this matter, and the connected miscellaneous petitions were closed accordingly.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
By this writ petition, the computation sheet dated 09.03.2024 and the consequential notice of demand dated 09.03.2024 are challenged.
2. The petitioner had filed the return of income for assessment year 2022-2023. By an intimation under Section 143(1) of the Income Tax Act, 1961, the return was processed and the refund claim was accepted. Thereafter, such assessment was selected for scrutiny. Pursuant thereto, assessment order dated 09.03.2024 was issued accepting the return of income and concluding that no addition is necessary. Since the petitioner was called upon to pay a sum of Rs.5,04,29,383/- by the computation sheet and demand notice, the present writ petition was filed.
3. Learned counsel for the petitioner invited my attention to the assessment order and pointed out that no addition was proposed in relation to the return of income filed by the petitioner. By referring to the computation sheet and the notice of demand, he points out that patent errors were committed while demanding a sum of Rs.5,04,29,383/-.
4. Mrs. S. Premalatha, learned junior standing counsel, accepts notice for the respondents. She submits that there appears to be a discrepancy when the assessment order and the impugned communications are compared.
5. On perusal of the assessment order, it is clear that it was concluded therein that no addition is being made in relation to the issues mentioned in paragraph 1 thereof. In those circumstances, the demand made in the computation sheet and the demand notice cannot be sustained.
6. Therefore, this writ petition is allowed by quashing the impugned computation sheet and the consequential notice of demand. There will be no order as to costs. Consequently, connected miscellaneous petitions are closed.
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