The Madras High Court has held that the assessee has to answer the proposals contained in the show cause notice dated 20.12.2019, the content of which has been incorporated in the impugned show cause notice dated 07.01.2022.
Refusing to quash the impugned notice, Justice C Saravanan held that the so-called new proposals appear to be prima facie covered by the first six proposals in the show cause notice, dated 20.12.2019 since the same are inter-connected.
The petitioner, M/s.Sadhurmugan Traders approached the Court for a second round of litigation. Earlier, the petitioner had suffered an assessment order for the assessment year 2018-2019 on 02.03.2020. the petitioner contended that apart from the demands propsed in the earlier proceedings, there were proposals in the impugned order dated 20.12.2019.
Dismissing the petition, the Court held that “the assessment order which was earlier passed on 02.03.2020 has been set aside by this Court by its order, dated 31.08.2020. There is no restriction or qualification in the said order. The order dated 02.03.2020 completely stands quashed. Therefore, the department’s appeal was also dismissed as not maintainable. Therefore, I am unable to accept the contention of the learned counsel for the petitioner. The petitioner has to answer to the proposals contained in the show cause notice dated 20.12.2019, content of which has been incorporated in the impugned show cause notice dated 07.01.2022. The so-called new proposals appears to be prima facie covered by the first six proposals in the show cause notice, dated 20.12.2019. They are inter connected. Therefore, I do not find any merits in challenge to the impugned show cause notice by the petitioner.”
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