The Madras High Court has quashed the income tax demand order, holding that the taxpayer failed to upload the Income tax returns because of technical issues. The court acknowledged the screenshot filed by the taxpayer as evidence.
Under the petition, the applicant contested the income tax demand order dated 16 July 2026. The taxpayer earlier approached the High Court contesting the assessment order dated 16 January 2024 and the notice dated 12 April 2022.
The Court in that petition asked the applicant, Sankaran Mekala, to file the return and submit the reply to the notice issued u/s 148 of the Income-tax Act, 1961 on 9th February 2026. After the order, the applicant deposited Rs 5 lakhs but could not upload the return.
The applicant provided proof of deposit along with a screenshot which he failed to upload the return. Therefore, he asked for another chance.
The case was heard by Justice Senthilkumar Ramamoorthy, and it was discovered that a chance would be provided to the taxpayer in the interest of justice. Thus, it quashed the demand order dated 16th July 2026 and ordered the Income Tax Department to open the portal for the taxpayer to file the income tax return for AY 2015-16.
The bench provided 3 weeks’ time for the applicant to submit the return. It ordered the Income Tax Department to conclude the assessment within 6 weeks from the return filing date, after furnishing the chance to the applicant.
For the petitioner, Adv. M.Raju Sharma appeared, and for the department, Ms M.Sheela, Senior Standing Counsel, and Mr H.Siddarth, Junior Standing Counsel, appeared.
The HC considered the digital proof, which is a screenshot exhibiting that the taxpayer could not upload the return, while setting aside the income tax demand order for AY 2015-16.
The taxpayer who could not upload the return because of technical problems with the IT portal can provide these screenshots to exhibit their genuine cause before the Court.
The applicant in this matter deposited Rs 5 lakhs as per the Court’s direction. The issue of not uploading the returns to the portal was now solved by the Court by asking the department to reopen the portal for the taxpayer. In such cases, the taxpayers can approach the High Court for obtaining immediate relief.
| Case Title | Sankaran Mekala Vs Income Tax Officer |
| Case No. | WP No. 30966 of 2026 |
| Assessee by | Mr M.Raju Sharma |
| Revenue by | Ms M.Sheela, Mr H.Siddarth |
| Madras HC | Read Order |
