Assessee is Duty Bound to Respond to Notices, Appear & Offer Explanations Before AO | HC Refuses to Halt Proceedings

Case Details: T. M. Subash Thangam v. ITO - [2023] 156 taxmann.com 732 (Madras)

Judiciary and Counsel Details

• • Dr Anita Sumanth, J.
  • A. Ilayaperumal for the Petitioner.
  • Dr B. Ramaswamy for the Respondent.

Facts of the Case

The assessee filed the writ petition under Article 226 of the Constitution of India. The prayer of assessee was to issue a writ of mandamus to direct the Assessing Officer (AO) to drop all proceedings initiated against him based on the notices issued under provisions of the Income-tax Act, 1961 for the Financial Years of 2017-2018 to 2020-2021.

High Court Held

The Madras High Court held that the prayer made by the assessee appeared to be misconceived. The affidavit shows the petitioner received notice and an order under Section 148A(b) and 148A(d) of the Act, dated 23.03.2022 and 05.04.2022. It’s unclear if these proceedings cover all the financial years mentioned in the prayer, as the notice and order only cover some years.

Further, the assessee is also unclear whether any assessment order was passed for the periods in question.

Even if it appears that the assessee received orders under Section 148A(d) that have attained finality and was also in receipt of notices under Section 148 of the Act, it is for it to cooperate with the proceedings initiated by the Department and take matters to a logical conclusion, in accordance with the law.

Revenue also contended that notices were issued continuously and repeatedly to the assessee, but there had been no response from his side. It was incumbent on the part of the assessee to appear before AO and put forth any explanation that he may have in regard to the issues raised by the Department.

Accordingly, mandamus of the nature sought by the assessee cannot be granted in a case that involves an appreciation of various disputed facts. It is to be noted that in matters relating to assessment, filing of a representation is of no avail as the assessee is duty-bound to respond to notices, appear before the officer and offer explanations.