In a recent ruling, the Madras High Court, while overturning the order, directed the income tax department to de-freeze the bank account. It condoned the delay of 4 days in filing appeal under Income tax.
Justice Krishnan Ramasamy noted that the delay in considering the rectification application by the income tax department resulted in 4 days delay in filing the income tax appeal.
Mahesh Metal Industries, the petitioner had filed a writ petition challenging the order dated December 11, 2023, issued by the The Assistant Commissioner, praying to unfreeze the bank account.
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The counsel argued that a show cause notice was issued on September 12, 2023, and an order demanding tax liabilities was passed on December 11, 2023. Following this, the petitioner submitted a detailed representation on April 5, 2024, requesting rectification of the order and the de-freezing of the bank account.
However, due to delays in processing the rectification request, the appeal filing period lapsed, resulting in a 4-day delay. Consequently, the appeal was rejected by the respondents.
The department’s counsel requested the court to condone the delay and instruct the respondents to properly address the appeal.
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Considering the arguments and reviewing the materials, the court deemed the reasons for the delay to be valid. Consequently, the court decided to set aside the rejection order dated April 18, 2024, and condone the 4-day delay in filing the appeal. It also directed the first respondent to accept the appeal and issue a ruling based on merits and applicable law, ensuring that the petitioner is given a fair opportunity.
Additionally, the court ordered the immediate de-freezing of the petitioner’s bank account, acknowledging that the appeal had been filed and a pre-deposit of Rs. 76,742 had been made.
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