TaxTMI 
TaxTMI 
2024 (2) TMI 750
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....the IT Act' for short). The petitioner assessee filed returns of his income for the assessment year 2021- 2022 on 25.01.2022, declaring total income of Rs. 16,52,780/-. Petitioner is engaged in the business of commercial loan activities. The petitioner case was selected for complete scrutiny under CASS for the reason that the petitioner assessee has taken unsecured loans from such persons who have not filed their return of income. Accordingly, a notice under Section 143(2) was issued and served on the petitioner on 28.06.2022. A show cause notice has been placed on record as Exts.P1, P4 and P5, contained the chart of 22 persons from whom the petitioner had accepted deposits on extend of Rs. 1,28,08,364/-. It is also mentioned that on the co....
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....notice in Ext. P1 would suggest that the petitioner had taken fresh loan from 22 persons whose details were given in the show cause notice. However, the assessment order would suggest that the petitioner had taken fresh loan from 28 persons during the assessment year 2021-2022. As per the response / reply given to the show cause notice, it was found that out, of all the lenders, only seven lenders were filing return of income and assessed tax. Notice under Section 133(6) was send to 8 lenders, only 5 lenders out of 8, replied to the notices issued under Section 133(6). 5. Subsequently, the case was referred to the verification unit to identify and verify the creditworthiness of the lenders. Thereafter, a show cause notice dated 05.12.2022,....
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....otice in respect of the amount of loan advanced by these 5 persons to the petitioner, there has been a violation of the principle of natural justice as the petitioner was not given an opportunity to explain the loan advanced by the five lenders. He, therefore, submitted that to the extend of the addition of the amount of loan advanced by these 5 persons is incorrect and in violation of the principles of natural justice and therefore, the same is liable to be set aside. 8. Learned counsel for the respondent however submits that the petitioner has remedy of filing the appeal against the said assessment order and this court should not entertain the writ petition in view of the availability of the statutory remedy of appeal against the assessm....