Madras High Court
M/S Sri Lakshmi Ammal Educational Trust vs The Principal Commissioner Of Income ... on 17 April, 2026
Author: C.Saravanan
Bench: C. Saravanan
WP No. 14619 of 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 17-04-2026
CORAM
THE HON'BLE MR JUSTICE C. SARAVANAN
WP No. 14619 of 2026
and
WMP.Nos.15862 and 15863 of 2026
M/s Sri Lakshmi Ammal Educational Trust
Represented by its Trustee
Ms J Srinisha No. 27/29 Thilak Street T Nagar
Chennai 600017
..Petitioner(s)
Vs
The Principal Commissioner of Income Tax
(Central), Chennai 2,
Room No. 102 , New Building 1st Floor,
Investigation Building,
No. 46 (Old No. 108) Mahatma Gandhi Road,
Chennai 34
..Respondent(s)
Prayer: Writ Petition filed under Article 226 of the Constitution of India, for
issuance of a Writ of Certiorari, call for the records pertaining to the impugned
order dated 30 03 2026 bearing DIN No ITBA/EXM/F /EXM45/ 2025-26
/1088145238(1) passed by the Respondent and quash the same as illegal,
arbitrary and without jurisdiction.
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WP No. 14619 of 2026
For Petitioner(s): Mr.Aravindh Pandiyan
Senior Counsel
for Mr.K.Suresh
For Respondent(s): Mr.A.P.Srinivas,
Senior Standing Counsel
and
Mr.A.N.R.Jayaprathap
Junior Standing Counsel
ORDER
Heard the learned Senior Counsel for the Petitioner as well as the learned Senior Standing Counsel for the Respondent/Income Tax Department.
2. There are several proceedings pending before this Court. It is suffice to state that the impugned order has been passed in response to an application filed on 19.07.2025 under Section 12 A (1)(ac)(i) of the Income Tax Act, 1961 for renewal of the Registration which was also obtained by the Petitioner on 10.09.1984 as a charitable Institution.
3. The Petitioner appears to be running several Institutions/education Institutions and that there was a search held on 05.10.2023. This has led to unearthing of certain evasion of tax as detailed below:
__________ Page2 of 9 https://www.mhc.tn.gov.in/judis WP No. 14619 of 2026 A search action under Section 132 of the Income Tax Act, 1961 was conducted in the case of M/s.Accord Group of Companies and Others including M/s.Sri Lakshmi Ammal Educational Trust on 05.10.2023. The institutions run by the trust were also covered in the search. During the course of search the following issues were noted.
Unaccounted fee collection in Balaji Medical college and hospital Unaccounted fee collection in Sri Lakshmi Narayana Institute of Science and Technology Unaccounted room rent and mess fee collection in Bharath Institute of Science and Technology Unaccounted Hostel fee collection Bharath Medical College and Hospital Bogus expenses (cash withdrawals from employees) in Sri Lakshmi Narayana Institute of Medical Sciences Expenses not incurred towards objects of trust in Sree Balaji Dental College and Hospital Claim of Consultancy fee without evidence in Bharath Institute of Science and Technology Payment to vendors without any evidence in Bharath Institute of Science and Technology __________ Page3 of 9 https://www.mhc.tn.gov.in/judis WP No. 14619 of 2026
4. In this back ground, the Petitioner had been issued with the Show Cause Notice dated 07.08.2025 under Section 12 AB (4)(ii) of the Income Tax Act,1961. Subsequently a corrigendum was issued on 08.08.2025, whereby reference to Section 12AB(4)(c)(ii) of the Income Tax Act, 1961 substituted with Section 12 AB(4)(c)(i) of the Income Tax Act, 1961. These are subject matters of WP.Nos.32038 and 32042 of 2025. The Petitioner has secured interim order from this Court on 21.08.2025 which has been extended on 14.10.2025. The above mentioned Show Cause Notice and Orders have been issued to cancel the status of the Petitioner as a charitalbe Institution.
5. It is in this background, the Petitioner has filed an application on 19.07.2025 as mentioned above which has led to the issuance of a Show Cause Notice dated 10.10.2025. The said Show Cause Notice also now subject matter of WP.No.40804 of 2025. In WP.No.40804 of 2025, no orders were passed, wherein directing the respondent to file a counter in WP.Nos.32038 and 32042 of 2025.
6. Immediately after the case was adjourned the Petitioner appears to have addressed a communication dated 30.10.2025, whereby the Petitioner has informed the Respondent about the undertaking given by other ASG that the __________ Page4 of 9 https://www.mhc.tn.gov.in/judis WP No. 14619 of 2026 Department will not proceed further with the Show Cause Notice dated 10.10.2025. The respondent has however proceeded to pass impugned order 30.03.2026.
7. The discussion in the operative portion of the impugned order are as follows:
“ Hence, in deference to the order of the Hon’ble High Court, the registration under Section 12AB with URNAABTS1129FE19857 dated 23.09.2021 is cancelled from AY 2024-25 onwards”.
8. It is noticed that from the earlier collateral proceedings ie., Assessment Orders passed pursuant to the Orders impugned to Show Cause Notice in WP.Nos.32038 and 32042 of 2025 in the following Writ Petitions – WP.Nos.39995, 40000, 40001, 40007, 40009 and 40014 of 2025, wherein the Petitioner has challenged the assessment orders for various assessment years starting from 2018-2019 to 2024-2025. Barring assessment order 2023-2024, separate orders will have to be passed by the Respondent as a consequence of the impugned order for the ensuing tax period.
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9. Considering the fact that the issue is now pending before this Court in the above mentioned Writ Petitions, there shall be an order of an Interim Stay of the impugned order till 15.06.2026. In so far as the relevant portion from the impugned order is extracted is here under:
“ Hence, in deference to the order of the Hon’ble High Court, the registration under Section 12AB with URNAABTS1129FE19857 dated 23.09.2021 is cancelled from AY 2024-25 onwards”.
10. The Writ Petition is challenged the Orders passed pursuant to the search and the cancellation of GST registration mentioned above were primarily filed among other grounds. One of the grounds is that that the jurisdictional Assessment Officer did not have jurisdiction to issue under Section 148 Notice and that only faceless authority was competent to issue the notice.
11. It was informed by the learned Senior Counsel and the other Standing Counsel for the respondent that the Supreme Court has recently passed orders leaving the issue open to be decided on this aspect afresh, in view of the retrospective validation by Finance Act 2026.
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12. Considering the same, I direct the Registry to list all the Writ Petitions mentioned in this Order for final final disposal on 15.06.2026. Meanwhile, the Respondents to file counter in all the Writ Petitions.
17-04-2026 Vv To The Principal Commissioner of Income Tax (Central), Chennai 2, Room No. 102 , New Building 1st Floor, Investigation Building, No. 46 (Old No. 108) Mahatma Gandhi Road, Chennai 34 __________ Page7 of 9 https://www.mhc.tn.gov.in/judis WP No. 14619 of 2026 C.SARAVANAN, J.
VV WP No. 14619 of 2026 17-04-2026 __________ Page8 of 9 https://www.mhc.tn.gov.in/judis WP No. 14619 of 2026 __________ Page9 of 9 https://www.mhc.tn.gov.in/judis