Dismissed

Veeran Ambiga v. the Principal Commissioner of Income Tax

Madras HC15 Sept 2021WA/1483/2021

Case brief

AI extract

What is this about?

In an appeal against a High Court order dismissed for lack of natural justice, the Court found that statutory notices were served via Registered Post and the assessee confessed non-cooperation. The writ appeal was thus dismissed, and liberty to file an appeal before the CIT(A) was granted.

What did the court decide?

Writ appeal dismissed. Liberty granted to file appeal before Commissioner of Income-tax (Appeals) within 30 days without rejection on limitation grounds.

Veeran Ambiga Vs the Principal Commissioner of Income Tax — Income Tax | Madras HC (2021)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 15.09.2021

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CORAM

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THE HON'BLE MR.JUSTICE T.S.SIVAGNANAM

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and

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THE HON'BLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP

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Writ Appeal No.1483 of 2021
and
C.M.P.No.9456 of 2021

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Veeran Ambiga

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 .. Appellant/Petitioner

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-vs-

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1.The Principal Commissioner of Income Tax,

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Ministry of Finance,

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 Income Tax Department,

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 No.121, Mahatma Gandhi Road,

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 Nungambakkam, Chennai-600 034.

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2.The Assessment Officer,

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Ward 2, Tiruvannamalai,

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 Income Tax Department,
 Tiruvannamalai. .. Respondents/Respondents

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Prayer:Appeal under Clause 15 of Letters Patent against the
order dated 09.02.2021 in W.P.No.625 of 2020 and set aside the
same.

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Prayer in W.P.No.625 of 2020: Writ of a writ of certiari to Call
for the entire records pertaining to the exparte best judgement
assessment for the assessment year 2017-2018 under Section 144
of the Income Tax Act dated 26.11.2019 vide order No. ITBA / AST
/ S / 144 / 2019-20 / 1021133838 (1) on the file of the second
respondent and quash the same as arbitrary aginst the
principles of natural justice.

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https://hcservices.ecourts.gov.in/hcservices/

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For Appellant : Mr.P.C.Harikumar

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For Respondents : Mr.A.N.R.Jayaprathap,
 for Standing Counsel

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JUDGMENT

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(Delivered by T.S.Sivagnanam, J.)

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This Writ Appeal, by the appellant-assessee, is directed
against the order dated 09.02.2021, in W.P.No.625 of 2020.

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2.The appellant-assessee challenged the order dated
26.11.2019, which was a best of judgment assessment under
Section 144 of the Income Tax Act, 1961 (hereinafter referred to
as 'the Act' for brevity). The learned Single Bench dismissed
the Writ Petition on the ground that the appellant, despite
receipt of the notices, did not participate in the assessment
proceedings and therefore, there was no error in the Assessing
Officer's proceeding to complete the assessment on best of
judgment basis. At the time, when the Writ Appeal came up for
admission, we passed the following order to enable the Revenue
to establish that notices and the draft order were duly served
on the assessee:-

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“Heard Mr.P.C.Hari Kumar, learned counsel
for the appellant.

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2.The short issue for consideration in
this appeal is whether the appellant/assessee
was served with the notice under Section 142(1)
of the Income Tax Act, 1961, ("the Act" for
brevity), dated 14.02.2018, whether he was
served with the Show Cause Notice, dated
20.05.2019, and Pre-Assessment Draft Order,
dated 16.09.2018. If the respondent/Department
is able to produce the records to show proof of
service of the notice under Section 142(1) of
the Act, dated 14.02.2018, there is no error in
proceeding under Section 144, in the light of
the second proviso to Section 144(1) of the Act.

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3.Mr.A.N.R.Jayaprathap, learned Standing
Counsel, accepts notice for the respondent and
he is directed to get the assessment file and
show proof of service of notice on the

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https://hcservices.ecourts.gov.in/hcservices/

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appellant/assessee.

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4.In the light of the above, there shall
be an order of interim stay till the next date
of hearing.

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List on 18.08.2021.”

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3.The Revenue has produced the original file and
photocopies of the relevant documents in the form of a typed set
of papers from which, we find that the notice dated 14.02.2018
issued under Section 142(1)(i) of the Act was sent by Registered
Post with Acknowledgement and has been received by the assessee
on 24.02.2018. The hearing notice dated 20.05.2019 was also sent
by Registered Post with Acknowledgement and the appellant-
assessee has received the same on 25.05.2019. By a communication
dated 16.09.2019, the Assessing Officer communicated the draft
assessment order under Section 144 of the Act and gave one final
opportunity to the assessee to file his explanation, if any, by
27.09.2019. This was communicated by Registered Post with
Acknowledgement and received by the assessee on 27.09.2019.
Thus, the notices and the draft assessment order have been
communicated to the appellant and the appellant, despite having
received the same, has not cooperated with the assessment
proceedings and therefore, we find that there is no error in the
order passed by the learned Writ Court.

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4.In the result, the Writ Appeal fails and is dismissed.
Taking note of the fact that the Writ Petition was filed within
30 days from the date of receipt of the assessment order dated
26.11.2019, we grant liberty to the appellant-assessee to file
an appeal before the Commissioner of Income Tax (Appeals),
within a period of 30 days from the date of receipt of a copy of
this judgment. If the same is done, the appellate authority
shall entertain the appeal without rejecting the same on the
ground of limitation. No costs. Consequently, connected
miscellaneous petition is closed.

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Assistant Registrar (CS-V)

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// True Copy //

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Sub Assistant Registrar

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abr

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https://hcservices.ecourts.gov.in/hcservices/

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To

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1.The Principal Commissioner of Income Tax,
 Ministry of Finance,
 Income Tax Department,
 No.121, Mahatma Gandhi Road,
 Nungambakkam, Chennai-600 034.

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2.The Assessment Officer,
 Ward 2, Tiruvannamalai,
 Income Tax Department,
 Tiruvannamalai.

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3.The Commissioner of Income-tax (Appeals), Chennai. (To return the original assessment order on returning a copy of it)

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Copy to

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 The Section Officer, ER Section, High Court, Madras.

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+1CC to M/s.P.C.Hari Kumar & Associates, Advocate, SR.No. 47041

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W.A.No.1483 of 2021

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SJ(CO)
B.VC (25/10/2021)

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https://hcservices.ecourts.gov.in/hcservices/

Veeran Ambiga v. the Principal Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

Veeran Ambiga v. the Principal Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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