Subramanian Sudhakar Thiagarajan v. The ITO, Non-Corporate Ward-1(3), Madurai

Parties Involved

Facts Summary

This appeal was preferred by the assessee, Subramanian Sudhakar Thiagarajan, against the ex-parte order of the Learned Commissioner of Income Tax (Appeals)/NFAC, confirming a penalty of ₹51,89,338/- levied under section 271(1)(c) of the Income Tax Act, 1961. The penalty was imposed following an assessment order dated 19.03.2022, where the Assessing Officer (AO) added ₹1,73,60,640/- towards unexplained cash deposits after reopening the assessment. The assessee had filed a Writ Petition (WP) (Registration No. WP (MD) 24827/2022) on 31.10.2022 before the Hon’ble Madras High Court against the reopening of the assessment, which is still pending. The assessee argued that since the validity of the reopening of the assessment order is pending before the High Court, the ex-parte penalty order should be restored to await the High Court’s decision.…

Legal Issues

• 1. Validity of the ex-parte penalty order in light of the pending Writ Petition against the assessment order.

Judgment Outcome

Decided in favour of Assessee.

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