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| The Tax Publishers2020 TaxPub(DT) 2448 (Mad-HC) : (2020) 427 ITR 0175 : (2021) 277 TAXMAN 0180 INCOME TAX ACT, 1961
Article 226
In relation to deduction claimed under section 80-IB(11C) there was every justification in the order of AO invoking section 115JC which provision was squarely applicable and assessee could not complain about violation of any principle relating to natural justice and that too, by filing of writ petition since alternate appellate remedy was available. Therefore, writ petition was dismissed.
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Writ - Maintainability - Alternate appellate remedy available to assessee -
Assessee claimed 100% deduction under section 80-IB(11C). AO passed order invoking section 115JC. Assessee by way of writ petition filed before High Court, claimed that invoking section 115JC without giving proper notice to assessee was a clear violation of principal of natural justice.Held: Assessment order has been sraight away challenged before High Court. Assessee had not filed any appeal, even though law provided him opportunity to do so. He had chosen alternate method of filing of writ petition which could not be upheld. If assessment order was examined further, it also revealed that during demonetisation period, assessee had deposited a total sum of Rs. 7,54,77,619 in cash, and when assessee was asked to explain the source, he stated that he was running Meenakshi Mission Hospital at Thanjavur, for which, tax holiday was being sought. The hospital has been the source for a huge cash holding of Rs. 7,54,77,619. It was a wonder that assessee actually sought tax holiday. There was every justification in the order of AO invoking section 115JC which provision was squarely applicable and assessee could not complain about violation of any principle relating to natural justice. In view of all these facts, writ petition was dismissed.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
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