Madras High Court
Sri Lakshmi Ammal Educational Trust vs The Assistant Commissioner Of Income ... on 29 October, 2024
Author: C.Saravanan
Bench: C.Saravanan
W.P.No.12846 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.10.2024
CORAM
THE HONOURABLE MR.JUSTICE C.SARAVANAN
W.P.No.12846 of 2022
and
W.M.P.Nos.12313 & 12315 of 2022
Sri Lakshmi Ammal Educational Trust,
Represented by its Managing Truste
J.Sundeep Aanand ... Petitioner
vs.
The Assistant Commissioner of Income Tax,
Central Circle 2(3)
Chennai 600 034. .. Respondent
Prayer : Petition is filed under Article 226 of the Constitution of India to
issue a Writ of Certiorarified Mandamus, to call for the records on the file
of the respondent and quash the impugned order in PAN : AABTS1129F
dated 29.03.2022 in DIN ITBA/PNL/F/270A/2021-22/1041997773(1) fo
the Assessment Year ('AY') 2018-19 passed by the respondent under
Section 270A of the Income Tax Act, 1961 and direct the respondent to
keep the penalty proceeding initiated under Section 270A of the Act in
abeyance until disposal of the quantum appeal filed by the petitioner
under Section 246A of the Act on 23.08.2021 in acknowledgement
https://www.mhc.tn.gov.in/judis
1/6
W.P.No.12846 of 2022
number 331111100230821 against the assessment order dated
22.06.2021 under Section 14393) of the Act.
For Petitioner : M/s.Vandana Vyas
For Respondent : Mr.A.P.Srinivas
Senior Standing Counsel.
ORDER
In this writ petition, the petitioner has challenged the impugned penalty order passed under Section 270A of the Income Tax Act, 1961 on 29.03.2022 for the Assessment Year 2018-19. Earlier, an assessment order was passed under Section 143 (3) of the Income Tax Act, 1961 on 22.06.2021.
2. It appears that by mistake, the petitioner has filed an application in Form-68 under Section 270AA(2) of the Income Tax Act, 1961 for waiver of penalty. Subsequently, the petitioner had also filed a statutory appeal under Section 248 of the Income Tax Act, 1961 on 23.08.2022 against the Assessment Order dated 22.06.2021 passed under Section 143(3) of the Income Tax Act, 1961.
https://www.mhc.tn.gov.in/judis 2/6 W.P.No.12846 of 2022
3. It also appears that the petitioner was required to respond to the notice issued under Section 270A of the Income Tax Act, 1961 at the time of issuance of Assessment Order dated 22.06.2021 under Section 143(3) of the Income Tax Act, 1961. Thereafter, subsequent notice was issued to the petitioner on 05.01.2022 which was not responded by the petitioner.
4. According to the petitioner, the petitioner is an educational institution and for reopening of the educational institution after a lockdown restrictions due to covid-19 pandemic, several mails were received and the email notice dated 05.01.2022 for levy of penalty was issued through online which was delivered went to its spam mail and therefore notice issued to the petitioner went unnoticed and therefore the petitioner could not respond to the same.
5. The learned counsel for the petitioner would submit that the petitioner may be given one more opportunity since admittedly the petitioner has not replied to the same and the petitioner filed an appeal https://www.mhc.tn.gov.in/judis 3/6 W.P.No.12846 of 2022 before the Appellate Commissioner vide impugned order dated 29.03.2022. The learned counsel for the petitioner also submits that the appeal is pending before the Commissioner of Income Tax (Appeals).
6. On the other hand, the learned counsel for the respondent would submit that the petitioner has been negligent and not replied to the notice issued on 22.06.2021 and thereafter filed on 05.01.2022. It is submitted that the petitioner can agitate in the appeal.
7. Having considered the submission made by the learned counsel for the petitioner and the respondent, it is clear that an assessee may make an application before the Assessing Officer for grant immunity from imposition of penalty under Section 270A of the Income Tax Act, 1961. Admittedly, the petitioner has not responded to the notice and an appeal is pending against the assessment order dated 22.06.2021.
8. Under such circumstances, the impugned order imposing penalty under Section 270A of the Income Tax Act, 1961 is quashed and the case is remitted back to the respondent to pass a fresh orders on https://www.mhc.tn.gov.in/judis 4/6 W.P.No.12846 of 2022 merits, within such period, preferably after the appeal filed on 23.08.2021 against the assessment order dated 22.06.2021 under Section 143(3) of the Income Tax Act, 1961 is disposed.
9. It is made clear that the petitioner shall however file a reply to notice within a period of 30 days from the date of receipt of a copy of this order. On such receipt of the same, the respondent shall pass orders on merits within such period. The petitioner shall co-operate with the respondent.
10. This writ petition stands disposed of. No costs. Consequently, connected miscellaneous petitions are closed.
29.10.2024
Index : Yes/No
Internet : Yes/No
Speaking : Non-speaking Order
Neutral Citation : Yes/No
kkd
https://www.mhc.tn.gov.in/judis
5/6
W.P.No.12846 of 2022
C.SARAVANAN, J.
kkd
To
The Assistant Commissioner of Income Tax, Central Circle 2(3) Chennai 600 034.
W.P.No.12846 of 2022
29.10.2024 https://www.mhc.tn.gov.in/judis 6/6