Tax Dispute Resolution: Partial Relief Granted with 25% Tax Deposit and Opportunity to Respond to Show Cause Notice In a tax assessment dispute for 2017-18, the SC partially allowed the writ petition, quashing the impugned order subject to depositing 25% of disputed ...
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Tax Dispute Resolution: Partial Relief Granted with 25% Tax Deposit and Opportunity to Respond to Show Cause Notice
In a tax assessment dispute for 2017-18, the SC partially allowed the writ petition, quashing the impugned order subject to depositing 25% of disputed tax. The case was remitted to the respondent for a fresh order, requiring the petitioner to file a reply to the show cause notice within specified timelines, ensuring procedural fairness while maintaining tax compliance.
Issues: Challenge to impugned order for assessment year 2017-18 confirming a demand of Rs. 1,19,660. Petitioner's lack of participation in proceedings. Request for opportunity to represent the case. Respondent's argument of dismissal due to latches. Granting partial relief by quashing the impugned order subject to depositing 25% of disputed tax. Remitting the case back to the respondent for a fresh order on merits. Requirement for the petitioner to file a reply to the show cause notice.
Analysis:
The petitioner challenged the impugned order dated 29.12.2023 confirming a demand of Rs. 1,19,660 for the assessment year 2017-18. The petitioner claimed unawareness of preceding notices and requested an opportunity to represent the case on merits. On the other hand, the respondent argued for dismissal due to latches, citing relevant Supreme Court decisions. The court considered both sides' submissions and decided to grant partial relief to the petitioner by quashing the impugned order. However, this relief was subject to the condition that the petitioner deposits 25% of the disputed tax within 30 days. The case was remitted back to the respondent for a fresh order on merits within three months.
The court emphasized that the petitioner must file a reply to the show cause notice dated 30.09.2023 and cooperate with the respondent. Failure to cooperate could result in the respondent taking legal action. Ultimately, the Writ Petition was allowed with no costs, and connected Miscellaneous Petitions were closed. The judgment aimed to balance the petitioner's right to be heard with the need for procedural compliance and timely action in tax matters.
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