Thiyagarajan Venkatraman v. The Income Tax Officer,Ward

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 20.05.2022 CORAM THE HONOURABLE MRS.JUSTICE S.SRIMATHY W.P.(MD).No.9996 of 2022 and W.M.P.(MD).Nos.7128 & 7129 of 2022 Thiyagarajan Venkatraman ... Petitioner Vs. The Income Tax Officer,Ward-1,Income Tax Office,100, Nanjikkottai Road,Thanjavur-613 006.... Respondent Prayer: Writ Petition filed under Article 226 of the Constitutionof India, praying this Court to issue a Writ of Certiorari, to callfor the records of the respondent in PAN DIN & NoticeNo.ITBA/AST/F/148A/2022-23/1042767545(1), dated 19.04.2022, andquash the same as illegal, arbitrary and against the principles ofnatural justice. For PetitionerFor Respondent : Mr.K.Soundararajan : Mr.N.Dilip Kumar ORDER The present writ petition has been filed to quash the impugnedorder, dated 19.04.2022. 2. The brief facts of the case is that the petitioner is havingHUF status, running an Aqua Farm in the name of Lakshmi Aqua Centreand being an assessee, return of income was filed regularly. Duringthe assessment year 2015-2016, the HUF filed the return on31.10.2015, also shown the income of Rs.26,99,510/- and paid the taxof Rs.6,36,100/-. The said amount was received from the sale ofprawns and was deposited in the HUF current account. During theassessment year 2015-2016, a sum of Rs.86,96,105/- was deposited inthe current account of the HUF out of the sale proceeds toRs.8,70,80,900/- and the same was disclosed in the HUF account. https://hcservices.ecourts.gov.in/hcservices/ 3. The respondent had issued a notice under Section 148-A ofthe Income Tax Act on 25.03.2022, alleging that the incomechargeable to tax has escaped for assessment and sought for thereply why the notice under Section 148 could not be issued treatingthe same as escaped income. The respondent had granted time upto31.03.2022. Further he had alleged that the petitioner had made acash deposit of Rs.85,66,106/- in the City Union Bank Account duringthe assessment year 2015-2016. The petitioner has submitted hisreply on 28.03.2022 and explained that the cash was deposited in thecurrent account of the HUF, also disclosed in the HUF currentaccount and return of income was also filed on 31.10.2015. 4. The specific contention of the petitioner is that the cashwas deposited in the HUF current account and not in the account ofthe individual. In support of the explanation, the petitioner hadenclosed all the copies of the return of income acknowledgement,statement and Form 3CB, 3CD and bank accounts of the HUF. Thepetitioner explained that by mistake the individual PAN number hasbeen given at the time of opening the HUF current account andtherefore prayed to drop the proposal initiated under Section 148Aof the Income Tax Act against the individual PAN number. 5. The contention of the petitioner is that the respondent didnot consider the specific explanation and the documents that wassubmitted along with the explanation. On perusal of the impugnedorder, it is seen that the respondent stated as follows: "In response to Notice u/s 148A(b), the assessee hasreplied through e-proceeding on 28.03.2022 furnishing replyletter, dated 28.03.2022 along with Acknowledgement copy ofthe ROI filed for A.Y 2015-16 in HUF status (AAHHV6656C) andIncome and Expenditure statement, Balance sheet for the HUF inwhich the assessee has stated that the cash deposit made tothe tune of Rs.8696105/- during the F.Y 2014-2015 in the CUBcurrent a/c no.037120000072820, the same is related to theHUF. And the same is admitted in the HUF's ROI. Subsequentlythe assessee has filed adjournment letter on 07.04.2022 andrequested 10 days time for furnishing of further documentalevidence. The reply of the assessee is considered. However,sufficient time given to the assessee. But, till date theassessee has not furnished any documentary evidence. The reply of the assessee is considered. However,sufficient time given to the assessee. But, till date theassessee has not furnished any documentary evidence. On the basis of material available on record and in theabsence of any further documentary evidences/explanation fromthe assessee, in response to the Notice u/s 148A(b) of theAct, it is found that income chargeable to tax has escapedassessment for the AY 2015-16 and therefore, I am satisfiedthat this is a fit case for issue of Notice u/s 148 of the Actfor the AY 2015-16. This order u/s 148A(d) of the Act ishttps://hcservices.ecourts.gov.in/hcservices/ passed with the prior approval of the competent authority i.e.Pr. Chief Commissioner of Income-tax, Chennai". 6. The respondent had stated that the year of assessment wasconsidered and sufficient time was granted to the assessee but theassessee has not furnished the documentary evidence. The claim ofthe petitioner is that he has submitted the documentary evidenceshowing the cash transaction, the deposit of the cash in the HUFaccount. However, the wrong entry was made in the account by givingthe personal PAN number. This was explained in the explanation andthe same was not considered by the respondent. The contention of thepetitioner is that he has submitted his explanation along with thedocumentary evidence. However, the respondent stated in the impugnedorder that documentary evidence was not furnished. It is a specificcontention of the petitioner is that, sufficient time was notgranted to him before passing this order. Therefore, this Courtremits the case back to the authorities with the followingdirection: "(i) The petitioner shall appear before the authorityalong with the documentary evidence. (ii) The respondents shall grant personal hearing andconsider the explanation and the documents that would be filedby the petitioner. (iii) The respondent is directed to consider the specificstand of the petitioner that individual PAN number was grantedwhile opening the HUF account". The impugned order is set aside and the respondents are directed tocomplete the said exercise and pass fresh order within a period oftwelve (12) weeks from the date of receipt of a copy of this order. 7. The writ petition stands disposed of, with the abovedirections. There shall be no order as to costs. Consequently,connected Miscellaneous Petitions are closed. // True Copy // Vacation Officer/ Assistant Registrar (RTI) btr / /2022Sub Assistant Registrar(CS) https://hcservices.ecourts.gov.in/hcservices/ Note : In view of the present lock down owing to COVID-19pandemic, a web copy of the order may be utilized for officialpurposes, but, ensuring that the copy of the order that ispresented is the correct copy, shall be the responsibility of theadvocate/litigant concerned. ToThe Income Tax Officer,Ward-1,Income Tax Office,100, Nanjikkottai Road,Thanjavur-613 006.+1 CC to M/s.K. SOUNDARARAJAN, Advocate ( SR-23904[F] dated 20/05/2022 )+1 CC to M/s.N. DILIPKUMAR, Advocate ( SR-23975[F] dated 20/05/2022 ) W.P.(MD).No.9996 of 2022 20.05.2022 AM(CO)GC(23.05.2022) 4P 4C