Majestic Printers v. Income Tax Authority & Anr.

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The Tax Publishers2023 TaxPub(DT) 3357 (Mad-HC) IN THE MADRAS HIGH COURT P.T. ASHA, J. Majestic Printers v. Income Tax Authority & Anr. W.P. (MD) No. 26117 of 2022 & W.M.P. (MD). Nos. 20268 & 20269 of 2022 & 3280 of 2023 17 April, 2023 Petitioner by: T.V. Muthu Abirami Respondents by: N. Dilipkumar Senior Standing Counsel ORDER This writ petition has been filed for a Certiorari calling for the records pertaining to the impugned assessment Order dated 21-9-2022bearing DIN & Order No. ITBA/AST/S/143(3)/2022-23/1045771493(1) purportedly passed under section 143(3) read with section 144B of the Income Tax Act, 1961 for the assessment year 2020-21. 2. The case of the petitioner is that he is the assessee under the Income Tax Act under Permanent Account No. AACFM8098A that they have been regularly paying the return of income in keeping with the provision of the Income Tax Act for the year ending 2020-2021. The petitioner had filed its return of income on 15-2-2021 declaring a total income of Rs. 8,14,880 and tax to the tune of Rs. 2,54,244 was paid. Thereafter, on 8-3-2022, the petitioner had received an E-mail from the National Faceless Assessment Centre (NFAC), calling upon the petitioner to provide a reply to the notices issued by the National Faceless Assessment Centre. The learned counsel for the petitioner would further submit that they were served with the notices dated 2-12-2021, 20-12-2021 and 17-2-2022 and on 10-3-2022, all these notices were issued under section 142(1) of the Income Tax Act (herein after called 'the Act'). The notices were hand delivered to the petitioner by the Income Tax Inspector, Trichy. The petitioner thereafter collated the necessary documents and furnished its reply on 18-3-2022, 25-3-2022 and 28-3-2022 and the petitioner did not receive any response to the above. However, on 28-10-2022, the petitioner was surprised to receive the show-cause notice claiming penalty under section 270(A) of the Income Tax Act. When that the petitioner logged into the income tax web portal of the respondents, the petitioner was shocked to find that on 21-9-2022, the impugned assessment order had been passed by adding a sum of Rs. 2,28,143 for an alleged excess payment of provident fund, a sum of Rs. 61,613 in respect of alleged excess interest paid to the creditor and a sum of Rs. 4,83,90,847 as alleged sundry creditors and a demand of Rs. 2,27,55,141 was raised by way of a demand notice under section 156. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2023 TaxPub(DT) 3357 (Mad-HC)

IN THE MADRAS HIGH COURT

P.T. ASHA, J.

Majestic Printers v. Income Tax Authority & Anr.

W.P. (MD) No. 26117 of 2022 & W.M.P. (MD). Nos. 20268 & 20269 of 2022 & 3280 of 2023

17 April, 2023

Petitioner by: T.V. Muthu Abirami

Respondents by: N. Dilipkumar Senior Standing Counsel

ORDER

This writ petition has been filed for a Certiorari calling for the records pertaining to the impugned assessment Order dated 21-9-2022bearing DIN & Order No. ITBA/AST/S/143(3)/2022-23/1045771493(1) purportedly passed under section 143(3) read with section 144B of the Income Tax Act, 1961 for the assessment year 2020-21.

2. The case of the petitioner is that he is the assessee under the Income Tax Act under Permanent Account No. AACFM8098A that they have been regularly paying the return of income in keeping with the provision of the Income Tax Act for the year ending 2020-2021. The petitioner had filed its return of income on 15-2-2021 declaring a total income of Rs. 8,14,880 and tax to the tune of Rs. 2,54,244 was paid. Thereafter, on 8-3-2022, the petitioner had received an E-mail from the National Faceless Assessment Centre (NFAC), calling upon the petitioner to provide a reply to the notices issued by the National Faceless Assessment Centre. The learned counsel for the petitioner would further submit that they were served with the notices dated 2-12-2021, 20-12-2021 and 17-2-2022 and on 10-3-2022, all these notices were issued under section 142(1) of the Income Tax Act (herein after called 'the Act'). The notices were hand delivered to the petitioner by the Income Tax Inspector, Trichy. The petitioner thereafter collated the necessary documents and furnished its reply on 18-3-2022, 25-3-2022 and 28-3-2022 and the petitioner did not receive any response to the above. However, on 28-10-2022, the petitioner was surprised to receive the show-cause notice claiming penalty under section 270(A) of the Income Tax Act. When that the petitioner logged into the income tax web portal of the respondents, the petitioner was shocked to find that on 21-9-2022, the impugned assessment order had been passed by adding a sum of Rs. 2,28,143 for an alleged excess payment of provident fund, a sum of Rs. 61,613 in respect of alleged excess interest paid to the creditor and a sum of Rs. 4,83,90,847 as alleged sundry creditors and a demand of Rs. 2,27,55,141 was raised by way of a demand notice under section 156.