Assessee Was Given Only 13 Hours Time To Reply To The Show-Cause Notice: Madras High Court Quashes Assessment

The Madras High Court has quashed the assessment as the assessee was given only 13 hours to reply to the show-cause notice.

The bench of Justice M. Dhandapani has directed the department to consider the matter afresh and, after providing an opportunity to the petitioner, pass appropriate orders within a period of four weeks.

The petitioner/assessee was issued with a first show cause notice on March 6, 2023, and the time to file a reply was given until March 9, 2023. The petitioner filed a reply on March 9, 2023, enclosing the bank statements and details of car sales. The petitioner again filed a reply on March 25, 2023, at 10.45 a.m., seeking time to file copies of purchase and sales bills and the PAN details of the dealers to whom the goods were sold.

In spite of giving the details and seeking time to produce and upload the voluminous records, the petitioner was issued with the second show cause notice proposing to assess the variation on March 27, 2023, at 19.10.33 p.m. The petitioner was given only 13 hours of time until 9.00 a.m. on March 28, 2023. The adjournment application submitted by the petitioner on March 25, 2023, in the portal was rejected on the ground that the deadline for completion of the assessment is March 31, 2023. The order was passed by the department.

The petitioner submitted that the petitioner has filed the writ petition only for the limited point that the respondents did not provide the petitioner with an opportunity to file a detailed explanation. The second show cause notice proposing to assess the variation was issued to the petitioner on March 27, 2023, at 19.10 p.m., and the petitioner was given only 13 hours to reply, i.e., till 9.00 a.m. on March 28, 2023. It is a clear violation of the principles of natural justice since, during the night hours, the petitioner will not be in a position to give a reply.

The court observed that the second show cause notice was issued to the petitioner on March 27, 2023, at 19.10 p.m., and the petitioner was given time to respond until 9.00 a.m. on March 28, 2023, a clear violation of natural justice principles.

Case Title: Sundaresan Suresh Kumar Versus Assessment Unit

Citation: 2023 LiveLaw (Mad) 133

Case No.: W.P.No.11529 of 2023

Date: 18.04.2023

Counsel For Appellant: G.Vardini Karthik

Counsel For Respondent: R.S.Balaji

Click Here To Read The Order