2024 (5) TMI 1025 - HC - Income Tax

Tax Assessment Order Quashed: Violated Natural Justice Principles, Fresh Order Allowed with Fair Process Emphasized.

Shri Ritesh Chhabria S/O Shri Rajesh Chhabria Versus Income Tax Officer 4 (1), National Faceless Assessment Centre (NAFAC), Delhi

Shri Ritesh Chhabria S/O Shri Rajesh Chhabria Versus Income Tax Officer 4 (1), National Faceless Assessment Centre (NAFAC), Delhi - TMI Issues involved: Writ petition against order u/s 147 read with 144 read with 144B of the Income Tax Act, consideration of response to show-cause notice, violation of principle of natural justice.Summary:The petitioner filed a writ petition against the order dated 13.03.2024 passed by the Assessing Officer u/s 147 read with 144 read with 144B of the Income Tax Act. The primary contention was the response to the show-cause notice, where the petitioner claimed to have filed a partial response, disputed by the respondents initially. The court noted the filing of response with acknowledgment number and the subsequent responses from both parties. The assessing officer concluded that the assessee failed to provide proper explanation regarding purchases from unregistered entities, leading to unexplained purchase consideration. The court, without delving into the merits of the case, considered the petition based on legal precedents allowing writ petitions despite alternate statutory remedies. Due to the violation of the principle of natural justice, the impugned order was quashed with liberty given to the assessing officer to pass a fresh order within one month, and the assessee was allowed to supplement their reply within one week. The petition was disposed of accordingly.