The Madras High Court on Monday dismissed writ petitions filed by Sivaganga Member of Parliament Karti P. Chidambaram and his wife Srinidhi Karti Chidambaram against show cause notices issued to them by the Income Tax department in 2020, seeking explanation as to why ₹6.38 crore should not be brought to tax for the assessment years 2014-15 and 2015-16.
Justice S.M. Subramaniam refused to entertain the cases on the ground that “the High Court would not enter into the venture of conducting an adjudication of disputed facts at the stage of show cause notice”.
The judge said it was the duty of the fact-finding authority in the Income Tax department to adjudicate the facts and arrive at a conclusion.
He also observed that it was for the assessees to defend their case before the competent authority by submitting the relevant documents and evidences and establish their case both on facts and on the basis of the provisions of the Income Tax Act. “The procedures for assessment/reassessment are yet to commence. The petitioners are expected to avail the opportunity and defend their case in the manner known to law,” he added.
The judge also directed the department to proceed with the assessment/reassessment proceedings by following the procedures as contemplated and by affording opportunity to the writ petitioners and complete the same as expeditiously as possible.
