Madras High Court
WP/41064/2026 of Vellore Institute of Technology Vs The Deputy Commissioner of Income Tax/ on 7 October 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07-10-2026
CORAM
THE HON'BLE MR JUSTICE KRISHNAN RAMASAMY
W.P. No. 41064 of 2026
CNR:{HCMA012375602026}
and W.M.P. No. 46074 of 2026
Vellore Institute of Technology
No.54, Thennamaram Street
Vellore - 632 001
Represented by its Chairman and Managing Trustee Mr G.Viswanathan
..Petitioner(s)
Vs
1. The Deputy Commissioner of Income Tax/
Assistant Commissioner of Income Tax (Exemptions)
Chennai, Porunai Block
No.121,Mahatma Gandhi Road, Nungambakkam, Chennai -600 034
2. The Assessment Unit
National Faceless Assessment Centre
Income Tax Department,
Delhi
..Respondent(s)
Prayer: This writ petition is filed under Article 226 of the Constitution of India, praying to issue a Writ of Certiorari calling for the records of the first respondent comprising the notice issued by the first respondent under Section 148A(1) of the Income Tax Act, 1961, bearing DIN and Letter No.
ITBA/COM/F/17/2025-26/1088166834(1), dated 31.03.2026, and all proceedings in consequence thereto including but not limited to the order passed by the first respondent under Section 148A(3) of the Income Tax Act, 1961, bearing DIN and Letter No. ITBA/COM/F/17/2026-27/1090373013(1), dated 24.06.2026, and the notice issued by the first respondent under Section 148 of
the Income Tax Act, 1961, bearing DIN and Letter No. ITBA/COM/F/17/2026- 27/1090388095(1), dated 24.06.2026, for PAN AAATN0569M, for AY 2021- 22, and to quash the same as being without jurisdiction, arbitrary and illegal.
For Petitioner :
Mr.Suhrith Parthasarathy
For Respondents :
Dr.C.P.Priya
Senior Standing Counsel
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ORDER
Challenge made in this Writ Petition is to the notice issued by the first respondent under Section 148A(1) of the Income Tax Act, 1961, dated 31.03.2026, the order under Section 148A(3) of the Income Tax Act, 1961, dated 24.06.2026, and the notice issued under Section 148 of the Income Tax Act, 1961, dated 24.06.2026, for AY 2021-22.
2. The learned counsel appearing for the petitioner submitted that the petitioner, a public charitable rust, is running the Vellore Institute of Technology. The petitioner made a donation of Rs.155 Crores to Vellore Institute of Technology, Andhra Pradesh (“VIT AP”) which is the basis for issuance of a notice under Section 142(1) of the Income Tax Act, 1961, dated 25.11.2022 calling for party wise details of all donations. The show cause notice dated 19.12.2022 proposed to disallow all donations or Rs.250.40 Crores including the donation made to VIT AP. After the petitioner’s reply, the assessment order dated 27.12.2022 dropped the proposal. The two unrelated additions made in that order are pending in appeal. The donation was also examined in VIT AP’s assessment. The show cause notice to VIT AP dated 13.12.2022 did not question the genuineness or source of the donation. The issue was dropped in VIT AP’s assessment order dated 26.12.2022. The earlier proceedings under Section 148A for the same year initiated on 21.03.2025 were dropped by the first respondent on 26.06.2025 holding that the information was incomplete. However, the same office then issued the impugned notice dated 31.03.2026 alleging that VIT AP’s Assessing Officer had questioned the genuineness and source of the donation made in AY 2020-21. The said notice was only uploaded on the portal, without any email or SMS alert. Subsequently, the first respondent vide letter dated 08.06.2026 called for the petitioner to appear before him to produce the documents relating to the issues discussed in the show cause notice dated 31.03.2026. However, the petitioner sent a reply on 10.06.2026 with a bona fide belief that it related to the earlier proceedings. But, within a period of two weeks, the impugned order and notices was issued on 24.06.2026. Therefore, the present writ petition has been filed for the afore said relief.
3. The learned Senior Standing Counsel appearing for the respondents fairly submitted that no proceeding was conducted and the first respondent has passed the impugned order dated 24.06.2026.
4. Heard the learned counsel appearing for the petitioner as well as the learned Senior Standing Counsel appearing for the respondents and also perused the materials available on record.
5. Considering the submissions made by the learned counsel for the petitioner as well as the learned Senior Standing Counsel appearing for the respondents, it is seen that though very many issues have been raised, this Court is concerned only about the failure on the part of the respondents to provide an opportunity of personal hearing to the petitioner. When the petitioner has made reply on 10.06.2026 to the notice issued by the first respondent on 08.06.2026, it is a mandatory requirement on the part of the first respondent to provide an opportunity of personal hearing, however, within a period of two weeks, without providing an opportunity of personal hearing to the petitioner, the impugned order has been passed. Such being the case, the petitioner now seeks an opportunity of personal hearing before the first respondent to explain his case. Therefore, the impugned notices and order are liable to be quashed.
6. In such view of the matter, this Writ Petition is allowed. The impugned notice dated 31.03.2026 issued by the first respondent under Section 148A(1) of the Income Tax Act, 1961, the order dated 24.06.2026 passed under Section 148A(3) of the Income Tax Act, 1961, and the notice dated 24.06.2026, issued under Section 148 of the Income Tax Act, 1961, for AY 2021-22 are quashed. While quashing the impugned notices and order, this Court directs the first respondent to afford an opportunity of personal hearing to the petitioner by issuing a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, as expeditiously as possible. No costs. Consequently, connected miscellaneous petition is closed. 07-10-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No SRM To
1. The Deputy Commissioner of Income Tax/ Assistant Commissioner of Income Tax (Exemptions) Chennai, Porunai Block No.121,Mahatma Gandhi Road, Nungambakkam, Chennai -600 034
2. The Assessment Unit National Faceless Assessment Centre Income Tax Department, Delhi
KRISHNAN RAMASAMY J. SRM WP No. 41064 of 2026 07-10-2026