2023 (7) TMI 1521 - HC - Income Tax

Validity of assessment order - Shorter period given to file response - violation of principles of natural justice as the show cause notice was issued on 10.05.2023 seeking for reply before 15.05.2023, which time for response is contrary to the SOP applicable for faceless assessment - HELD THAT - It is clear that the notice has been issued on 10.05.2023 by 18.14 hours. The response was directed to be made by 15.05.2023. The time that is stipulated for response is in clear violation of the applicable SOP at Clause N.1.3 which requires that at least 7 days time to be given for the purpose of making out a response. It is clear that the plea of prejudice caused to the petitioner and violation of principles of natural justice is a contention that requires acceptance. Accordingly, on the sole ground, the matter is remanded to the stage post show cause notice at Annexure-J dated 10.05.2023. The petitioner is at liberty to make out his reply to the show cause notice at Annexure-J and the Authority to afford all opportunities as is permissible under the law to complete the proceedings. All contention of the petitioner are kept open. Petitioner submits that the aspect of limitation is also to be kept open. Said submission of the petitioner is taken note of. Accordingly, Annexures-A1 to A4 are set aside.

Summary

The petitioner sought setting aside of assessment order, computation sheet, notice of demand, penalty notice, and various notices under Income Tax Act. Assessment order set aside due to violation of natural justice principles. Matter remanded for petitioner to reply to show cause notice. Limitation aspect also kept open. Annexures A1 to A4 set aside.