WP No. 5502 of 2022 DATED: 10-11-2025 CORAM THE HONOURABLE MR JUSTICE C. SARAVANAN WP No. 5502 of 2022 and W.M.P.No.5584 of 2022 Shri Dhanala Ramraj Naidu Pan: AAJPR7021D BBC Hallam Garden Apartments, Flat No. 6, 2 nd Floor, Door No. 51/121, New Avadi Road Kilpauk, Chennai 600 010 Petitioner(s) Vs 1. Income Tax Department Ministry of Finance, National Faceless Assessment Centre Delhi. 2.Income Tax officer, Non Corproate Ward 10 (5), Chennai. Respondent(s) PRAYER https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 Writ Petition filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari, calling for the records relating the Impugned order passed by the 1 st Respondent under section 271(1)(c) of the IT Act dated 21.01.2022 in ITBA/PNL/F/271(1)(c)/2021-22/1038953276(1), quash the same. For Petitioner(s): Mr.Abhinav Vaidyanathan For M/s.Lakshmi Kumaran And Sridhara Attorneys For Respondent(s): Mrs.S.Premalatha Senior Standing Counsel Counter Filed Respondents ORDER The Petitioner has challenged the impugned order dated 21.01.2022 passed under Section 271(1)(c) of the Income Tax Act, 1961. By the impugned order, the Petitioner has been imposed with a penalty of Rs.7,41,416/- under the aforesaid provisions being 100% of the tax levied which was purportedly evaded by the Petitioner. 2. Operative portion of the impugned order dated 21.01.2022 reads as under: https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 “8. Considering the non compliance from the assessee, as also the fact that the assessee has not preferred any appeal against the said assessment order, strengthens the order of the Assessing Officer and it is an undeniable fact the above facts came to light as a result of verification of information collected by the department painstakingly during the course of assessment proceedings. Had the case of the assessee not be scrutinized, the discrepancies would not have been detected. It is an accepted preposition that the onus of proving any claim made by the assessee is squarely on the assessee and this burden never shifts on the Department. 9. In view of the circumstances narrated above and facts of the case as discussed in the assessment order, it is opinion that the assessee has concealed the particulars of his income within the meaning of Explanation 1 to Section 271(1)(c) of the Income Tax Act, 1961 in respect of the capital gain of Rs.35,99,113/-. Therefore, this is a fit case for imposition of penalty u/s.271(1)(c) of the I.T.Act for concealement of income. 10. Considering the above facts, this is a fit case for levy of penalty u/s 271(1)(c) of the Act and an amount of Rs.7,41,416/- being 100 percent of tax sought to be evaded is imposed on the assessee as penalty, the calculation of which is given hereunder:- 11. Working of quantum of penalty as per clause (c) of explanation 4 to section 271(1)(c) is as under: Sr.No Particulars Amount 1 Total income as per Return of Income filed dated 09.05.2014 Rs.2,31,240/- 2 Total income as per order u/s.143(3) r.w.s 153(4)(iv) of the IT Act dated 30/11/2016 Rs.38,30,348/- 3 Income in respect of which for furnished the inaccurate of income leading to concealement of Rs.35,99,113/- https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 Sr.No Particulars Amount income 4 Tax sought to be evaded (Including S.C. And E.C) Rs.7,41,416/- 5 Minimum Penalty @100% of tax sought to be evaded. Rs.7,41,416/- 6 Maximum penalty @ 300% of tax sought to evaded Rs.22,24,248/- 7 Amount of penalty at 100% of the tax sought to be evaded Rs.7,41,416/- Thus, penalty under Section 271(1)(c) of the Act is hereby levied at 100% of the tax sought to be evaded of Rs.7,41,416/- on assessee. 12. Issue Demand Notice and copy of the penalty order to the assessee.” 3. The background of the impugned order is a notice dated 29.09.2021, issued after a fresh assessment order dated 29.09.2021 for the Assessment Year 2013-2014 was passed pursuant to the remand order dated 08.08.2019 of the Income Tax Appellate Tribunal in ITA.No.935/CHNY/2018. 4. Having considered the submissions made by the learned counsel for the petitioner and the learned Senior Standing counsel for the respondents, it is evident that the impugned order preceded a notice under Section 271(1)(c) of the Income Tax Act, 1961 dated 29.09.2021, pursuant to the assessment order dated 29.09.2021, which was passed with a view to avoid limitation. https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 5. Relevant portion of the assessment order dated 29.09.2021 reads as under: “The above order is subject to revision u/s 153(4)(iv) on receipt of valuation report from District Valuation Officer. Penalty u/s 271(1)(c) initiated for furnishing of inaccurate particulars. Demand notice and calculation sheet enclosed separately.” 6. In the said order, it has been stated that report from the District Valuation Report was yet to be received and since the case was getting time barred, there was limitation to complete the assessment on or before 30.09.2021. https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 7. Post facto, the assessment order dated 29.09.2021 has now been substituted with a different order dated 20.05.2022 under Section 154 of the Income Tax Act, 1961. It is also revealed that the respondent was unaware of the pendency of the appeal before the Income Tax Appellate Tribunal and the order passed on 08.08.2019. 8. Considering the same, the impugned order is set aside with a direction to the respondents to pass a fresh order. In the meantime, it is open for the petitioner to work out the remedy against the order dated 20.05.2022 passed under Section 154 of the Income Tax Act, 1961. 9. This writ petition is disposed of with the above direction. However, there shall be no order as to costs. Consequently, connected miscellaneous petition is closed. 10-11-2025 kak Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 To 1.Income Tax Department Ministry of Finance National Faceless Assessment Centre Delhi 2.Income Tax officer Non Corproate Ward 10 (5) Chennai https://www.mhc.tn.gov.in/judis WP No. 5502 of 2022 C.SARAVANAN, J. kak WP No. 5502 of 2022 10-11-2025 https://www.mhc.tn.gov.in/judis