Karnataka HC quashes Income Tax Demand Notice as Taxpayer requested Time to Submit Books of Accounts as due to his Wife’s ill Health [Read Order]

The Karnataka High Court quashed the Income Tax Demand Notice as a taxpayer requested time to submit books of accounts due to his wife’s ill health.

The petitioner, G.Satish Kumar has assailed the notice issued by respondent under Section 142(1) of the Income Tax Act, 1961 in order to contend that on account of the serious illnesses and ailments viz., liver and brain tumor of his wife, who was undergoing treatment for the said ailments, the petitioner appeared before respondent and requested him to grant reasonable time of 30 days to submit the books of accounts and other documents in answer to the aforesaid notice. It is the grievance of the petitioner that his inability and omission to produce the documents, books of accounts, etc., in response to the aforesaid notice was on account of bonafide reasons, unavoidable circumstances, and sufficient cause, and consequently, he was not in a position to produce the said documents prior to 27.09.2021, on which day respondent proceeded to pass the impugned order and issued the consequential notice, aggrieved by which the petitioner is before this Court by way of the present petition.

It has been submitted that if an opportunity is granted, even on the merits of his claim, the petitioner will place sufficient material and also produce additional material to substantiate his claim/defence before the respondent if an opportunity is given to the petitioner to produce the same by setting aside the orders and notices and remit the matter back to the respondent.

The single-judge bench of Justice S.R.Krishna Kumar held that the petitioner has specifically stated that his wife is suffering from liver and brain tumor and was undergoing treatment and consequently, pursuant to the notice passed under Section 142(1) of the Income Tax Act, the petitioner appeared before respondent and requested granting of 30 days time to submit the books of accounts and other documents. In view of the specific assertion of the petitioner, I am of the considered opinion that in the interest of justice, it is just and proper to set aside the impugned order and notices and remit the matter back to the respondent by providing one more opportunity to the petitioner to produce the books of accounts and other documents in support of his claims/defences.

“Under these circumstances, without expressing any opinion on the merits of the claim of the petitioner, I deem it just and proper to set aside the impugned order and notices and remit the matter back to respondent for re-consideration afresh, in accordance with the law,” the court said.

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