The Income Department had permitted only 13 hours to file a reply to show cause notice (SCN) issued to the assessee. The assessment was overturned and a re-adjudication was mandated by the Madras High Court’s Single Bench of Justice M. Dhandapani.
The petitioner was issued with a first show cause notice on 06.03.2023 and time to file reply was given till 09.03.2023 and the petitioner filed a reply on 09.03.2023 enclosing the bank statements and details of sales of cars.
On March 25, 2023, at 10.45 a.m., the petitioner once again submitted a reply in which he requested further time to submit copies of the sales and purchase invoices as well as the Permanent Account Number (PAN) information for the dealers to whom the products were sold.
The petitioner was given the second show cause notice proposing to assess the variation on March 27, 2023, at 19.10.33 p.m. despite providing the aforementioned information and requesting time to produce and upload the extensive records. The petitioner was given only 13 hours to respond, which ended at 9.00 a.m. on March 28, 2023.
The petitioner submitted an adjournment request through the portal on March 25, 2023, but it was denied because the deadline for finishing the assessment was March 31, 2023. Despite everything stated above, the contested order was passed.
The counsel of the petitioner asserted that the writ petition was filed only for the limited point that the respondents did not provide opportunity to the petitioner to enable the petitioner to file detailed explanation.
Further, the second show cause notice in which the petitioner was given only 13 hours time to reply was a clear violation of principles of natural justice since during the night hours, the petitioner will not be in a position to give reply.
The bench noted that there was a blatant disregard for natural justice norms. As a result, the first respondent’s disputed order was dismissed and the respondents were given a further chance to weigh in on the case.
In addition, the respondents were directed to reconsider the situation, allowing the petitioner an opportunity of hearing and issue proper instructions, within four weeks from the day they receive a copy of this judgement.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
