InW.P. (MD) No. 8320 of 2023 -MADR HC- Madras High Court considers Petitioner's health condition, grants one more opportunity in Tax Assessment case; Directs Income Tax Officer to redo the Assessment process
Justice S. Srimathy [10-07-2023]

Read Order: D.S. Xavier Rajasekaran v. Income Tax Officer Ward-1

Chahat Varma

New Delhi, July 20, 2023: In a recent decision, the High Court of Madras has taken into consideration the petitioner's health challenges and has granted him one more opportunity in relation to their tax assessment. The court set aside the impugned assessment order passed by the Income Tax Officer and directed them to redo the assessment process, ensuring a fair opportunity for the petitioner to present their case.

Briefly stated, the petitioner in this case had failed to file tax returns for several years. During scrutiny of their bank account, the Income Tax Officer discovered a deposit of Rs. 55,00,000. Subsequently, various notices were issued to the petitioner. However, the petitioner did not respond to any of these notices. As a result, the Income Tax Officer proceeded to pass an assessment order based on the Best Judgment Assessment. Subsequently, the petitioner received a notice via SMS indicating the initiation of penal proceedings under Section 271AAC (1) of the Income Tax Act. In response, the petitioner promptly approached the court by filing the present writ petition.

The bench of justice Justice S. Srimathy took into consideration the petitioner's health issues, including Parkinsonism-Tremor predominant with chronic liver disease, kidney cancer with Lap Partial Nephrectomy, and a past case of COVID-19 pneumonia. The bench also noted that the petitioner had been confined to bed for a few days based on the summary report.

Considering the circumstances of the case, the court granted the petitioner one more opportunity without any further adjournments. The Income Tax Officer had already issued a notice and a draft assessment order. The petitioner was instructed to submit an explanation and objections to the draft assessment order, along with all relevant documents.