The Madras High Court dismissed the writ petition filed by the Saravana Group against income tax proceedings for suppressed sales and challenging tax demand on technical grounds.
Saravana Selvarathnam Retail Private Limited and Saravana Selvarathnam Trading & Manufacturing Private Limited, the petitioners filed two separate writ petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari, to call for the records of the Assistant Commissioner of Income Tax for payment of demands.
Hema Muralikrishnan, the counsel for the petitioners contended that the demand of notices issued by the respondents was not based on proper enquires and submitted that the petitioners were not liable to pay the demand raised by the department.
It was further stated that the petitioners were not getting any unaccounted income from the source of business and all the dues of tax were correctly paid by the petitioners.
A.P.Srinivas, the counsel for the department contended that the statutory appeals, rectification petitions, and stay applications are pending before the various authorities even according to the petitioners.
It was also contended that in the present writ petition, the remarks column was blank and hence those demands appear to have been attained finality. It was thus for the respective petitioners to settle the same.
The bench observed that the non-disclosure of the remark column in the writ petition was done intentionally by the petitioners and the petitioners were liable to pay the demand raised by the department.
A single-member bench comprising Anita Sumanth (Judicial) held that no avenue to intervene in these writ petitions and in any event, and no case is made out for quashing the impugned demands, in light of the admitted position while dismissing the petition filed by the petitioners.
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