Madras High Court refuses relief due to inability to furnish debtors' details

Madras High Court refuses relief due to inability to furnish debtors' details

The Court agreed with the Income Tax Appellate Tribunal that the Appellant was not entitled to any relief due to his inability to provide details of its old sundry debtors

The Madras High Court upheld the order of the Income Tax Appellate Authority rejecting the Assessee's appeal on the ground that no relief could be granted on account of the inability of the assessee to furnish the details.

The matter titled M/s Jaidayal Prannath Kapur v Commissioner of Income Tax was placed before the Division Bench of the High Court of Madras, comprising Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup.

The factual matrix of this matter was regarding the assessment of the Appellant – Assessee for the Assessment Year under consideration, AY 2002-03, which was reopened and notice u/S 148 of the Income Tax Act, 1961 was issued and the Appellant – Assessee was requested to furnish the name and address of the Sundry Debtors who gave/settled their amounts by cash.

The Appellant – Assessee submitted that it had received the payments from its old Sundry Debtors after a gap of two to three years but the Income Tax Appellate Authority did not believe this theory and concluded that the Assessee could not furnish any details regarding the payments received from the Sundry Debtors including their names despite admitting that the income details were available with the Assessee.

The Court agreed with the Appellate Tribunal after analysing the factual matrix of the matter that no relief was granted to the Appellant – Assessee, on account of the inability of the Assessee to furnish the details called for. It was further observed that the position had not improved in any manner and the Assessee was in the same state of affairs.

Thus, the tax case appeal was dismissed by the Court as there was no question of law.