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2024 (6) TMI 1299 - HC - Income TaxIssues: Challenge of assessment order on grounds of breach of principles of natural justice. The judgment pertains to the challenge of an assessment order dated 24.03.2024 on the basis of breach of principles of natural justice. The petitioner's assessment was reopened under Section 148A(d) and notice under Section 148, following which various notices were issued under Sections 143(2) and 142(1) of the Income Tax Act, 1961. The petitioner responded to these notices, providing explanations and supporting documents, including a certificate from the bank. The petitioner contended that the impugned order did not consider their replies or the submitted documents, making it unsustainable. The petitioner's counsel argued that the show cause notice provided insufficient time for a reply and highlighted discrepancies in the amount of cash deposits as per the bank records. The senior standing counsel for the respondent pointed out that the petitioner failed to respond to several notices and did not adequately explain the sources of cash deposits, leading to the confirmation of variations. He emphasized that the impugned order was reasoned and offered a personal hearing through video conferencing. The order under Section 148A(d) detailed the bank deposits. The court observed that the show cause notice allowing only one day for a reply was unreasonable. The petitioner's consistent statements regarding the actual cash deposits and the submission of supporting documents were not considered in the impugned order. Consequently, the court found the order unsustainable and set it aside, remanding the matter for reconsideration. The petitioner was granted 15 days to submit additional documents, with instructions for a fresh assessment order within three months. The writ petition was disposed of with no costs awarded, and connected miscellaneous petitions were closed.
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