The Kerala High Court upheld the assessment order passed under the Income Tax Act, 1961 and observed that the assessee cannot go on asking for time one after another in response to the show cause notice (SCN).
The present writ petition has been filed by the petitioners impugning the assessment order dated 24.05.2023 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 and penalty notice dated 24.05.2023 issued under Section 274 read with Section 271 (1) (c) of the Income Tax Act, 1961.
After considering the reply and the submissions the impugned assessment order has been passed and total taxable income has been determined to be Rs. 6,48,29,2113/- with addition of Rs. 6,36,70,393/- under Section 69A of the Income Tax Act. The demand notice for payment of tax was also annexed with the assessment order and direction was issued to initiate penalty proceedings.
The Counsel for the petitioner submitted that the Show Cause Notice issued to the petitioner on 03.05.2023 asking the petitioner to file reply by 06.05.2023 was responded by the petitioner/assessee and request for time to file the reply was made up to 20.05.2023. This fact is evident from the, print out taken from the website of the Department. The petitioner was issued against a notice on 17.05.2023 and the petitioner asked for further time to 07.06.2023. In the meantime, the impugned assessment order has been passed on 24.05.2023.
A Single Bench of Justice Dinesh Kumar Singh observed that “The petitioner did not file reply and therefore, the Authority was well within its power not to grant further time for the petitioner. Therefore, I do not find much substance in the submission that there is violation of the principles of natural justice. Petitioner cannot go on asking for time one after another in response to the show cause notice issued one after another. Therefore I do not find any ground to interfere with the impugned order or notice.”
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