Gurushanakar S. v .CIT ( 2021 ) 199 DTR 42 ( Mad)) (HC) Editorial: Refer order of single judge , Gurushanakar S. v .CIT (2020) 427 ITR 175/ ( 2021) 199 DTR 44/ 319 CTR 410/ 277 Taxman 180 ( Mad ) (HC)

S. 80IB: Industrial undertakings – Fraudulent transactions – Denial of tax holiday – Principles of natural justice is not applicable in cases of fraud – Special provisions for payment of tax by certain persons other than a company.- Hospital -Tax holidays -Alternative remedy – Finding given by single judge was modified – Directed to entertain the appeal and dispose the appeal in accordance with law as expeditiously . [ S. ,80IB(11C) , 115JC , 153A , 246A, Art ,226 ]

On writ dismissing the petition the single judge held that the assessment order revealed that during the demonetisation period, the assessee had deposited a total sum of Rs. 7,54,77,619 in cash, and when the assessee was asked to explain the source, he stated that he was running a hospital at Thanjavur, for which the tax holiday was now being sought. The hospital had been the source of a huge cash holding of Rs. 7,54,77,619. Any tax holiday can be granted to a person who declares a truthful return. It cannot and should not be granted to a person who claims that he purchased medical equipment in the guise of treating poor persons for a sum of Rs. 2,32,79,760 and it is subsequently found that the entire transaction was bogus. There was every justification in the order of the Assessing Officer invoking section 115JC which provision was squarely applicable.  Appeal was filed against the order of single Judge . Learned single judge dismissed the writ petition and  also given finding on merits  .On appeal the division bench modified the order of the single judge and directed the revenue to entertain the  appeal and dispose the appeal in accordance with law as expeditiously .    (AY 2013 -14 to 2017 -18

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