2025 (9) TMI 1685

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....3) read with Section 144B. Consequently, the Demand Notice issued under Section 156 as well as the Penalty Show Causes Notices issued under Section 274 read with Section 270A and 271AAC(1) are also impugned. 3. The short ground on which the above Assessment Order is challenged is that the show cause notice issued before passing the Assessment Order was for making an addition of bank credits of Rs. 5,43,49,761/- as unexplained money under Section 69A of the Income Tax Act, 1961, whereas the Assessment Order makes an addition with reference to something that is entirely different. The Assessment Order states that an amount of Rs. 1,17,00,000/- remains unexplained in view of the provisions of Section 69A of the Act and accordingly are added....

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....9A, but if at all, would fall under Section 69, which is a section regarding unexplained investments. For all these reasons, the Petitioner contends that the above Petition be allowed. 5. On the other hand, the learned advocate appearing on behalf of the Revenue, submitted that the merits of the Assessment Order can be agitated only in an Appeal for which there is a separate forum. The discretionary jurisdiction of this Court ought not to be invoked when the Assessment Order is finalized, and in which the Petitioner has participated. If the Petitioner is not satisfied with the Assessment Order, then, he can certainly agitate his grievances before the Commissioner of Income Tax (Appeals). Once the Assessment Order is passed by the Assessi....

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....plained. This addition was for the sum of Rs. 1,17,00,000/-. The Petitioner was never called upon to show cause with reference to this addition. Over and above this, there is also an addition of Rs. 24,39,420/- being income earned under Section 56(2)X of the IT Act. As far as this amount is also concerned, the Petitioner was never called upon to show cause regarding this addition in the Show Cause Notice dated 14th February 2024. 7. Once these are the facts before us, we are clearly of the view that the Assessment Order cannot be allowed to stand as the same has been passed in breach of principles of natural justice. We, accordingly, set aside the impugned Assessment Order as well as the Demand Notice and the Penalty Notices issued to th....