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In 427ITR15 the assessee having deposited huge cash during the demonetization period claimed a tax holiday alleging that the cash is generated in tax holiday business of running hospitals and qualify for deduction u/s 80-IB (11C). The AO in this case assessed him u/s 115JC against which a writ is preferred by the assessee alleging that violation of principles of natural justice.

The Madras High Court brushed aside the plea of the assessee by invoking ‘useless formality’ theory vide (2000) 7SCC 529 and wondered on the fraudulent conduct of the assessee to claim tax holiday against a huge cash deposit. The Court held that tax holiday can be granted to a person who declares a truthful return.

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