HC dismisses plea by TAFCOFED challenging the I-T notices

CHENNAI: The Madras High Court dismissed a writ petition filed by Tamil Nadu State Apex Fisheries Cooperative Federation Limited (TAFCOFED) to quash the assessment notices issued by the Income Tax department demanding the payment of taxes for the income generated by the federation for the financial years from 2013-2014 to 2016-2017.

“I am, however, not inclined to accept the request, as assessments, made validly, cannot be set aside for the mere asking,” Justice Anita Sumanth held.

The judge passed the orders on dismissing the petition filed by the TAFCOFED of the state fisheries department.

“Admittedly, the petitioners are non-filers and there has also been no compliance to the various notices and questionnaires issued by the respondents. I thus find no infirmity in the orders passed,” the judge ruled.

According to the Tax department, the TAFCOFED made cash deposits in banks from 2013-2014 to 2016 – 2017.

The IT department further stated the federation had deposited Rs 23.10 crore, Rs 2.90 crore, Rs 80.83 crore, and Rs 15.44 crore in the 2013-2014, 2014-2015, 2015-2016, and 2016-2017 financial years respectively.

“On the premise that income chargeable to the tax of the above amounts had escaped assessment, notices under Section 148 of IT Act were issued to the petitioner. There was no response to the same,” the respondent department submitted.

The TAFCOFED upon receiving the four notices from IT on March 29 and 30, 2021, sent a reply on February 8, 2022, stating that it is a cooperative society formed for the implementation of Government Welfare Schemes and thus believes that it is eligible for deduction under Section 80P (2) of the Act.

Rejecting the same, the IT sent assessment orders on March 8, 2022, demanding the cooperative society to pay the tax. However, the TAFCOFED did not respond to any of the notices issued by IT and preferred this petition.