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2020 (6) TMI 198 - HC - Income TaxAssessment u/s 153A - disallowing exemption under Section 80-1B (11C) - writ petitions were filed challenging the assessment order passed on remand and invoking Section 115-JC - violation of principle relating to natural justice - HELD THAT:- Any tax holiday can be granted to a person who declares a truthful return. It cannot and should not be granted to the person who claims that he purchased medical equipments in the guise of treating poor persons for a sum of ₹ 2,32,79,760/- and it is subsequently found that the entire transaction is bogus. We find every justification in the order of the Assessment Officer invoking Section 115JC which provision is squarely applicable. It is also seen that C.P.Anbunathan had further stated in his statement that the demand draft drawn in the name of M/s.Sowdambika Traders was received by Meenakshi Mission Hospital and Research Center, Madurai and in turn cash was handed over by him to the petitioner Dr.S.Gurushankar after deducting commission of one percentage. Naturally, when commercial trade is indulged in the guise of serving the poor and needy and seeking tax holiday, this court can never come to the rescue of the petitioner. The account books of Meenakshi Hospital, Thanjavur were also verified and it was seen that the demand draft was never reflected in the accounts and only cash payment has been made. Petitioner cannot complain about violation of any principle relating to natural justice. An assessment order has been passed. An appellate remedy is available. The petitioner has consciously decided to forego that remedy. If the assessment order is examined further, it also reveals that during the demonetisation period, the petitioner had deposited a total sum of ₹ 7,54,77,619/- in cash, and when the assessee was asked to explain the source, he stated that he was running Meenakshi Mission Hospital at Thanjavur, for which, the tax holiday is now being sought. The hospital has been the source for a huge cash holding of ₹ 7,54,77,619/-. It is a wonder that the petitioner actually seeks tax holiday. This Writ Petition has to suffer an order of dismissal.
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