TaxTMI 
TaxTMI 
2025 (10) TMI 231
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....thili Mehta for the respondent. 2. Having regard to the controversy involved which is in narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing. 3. Rule returnable forthwith. Learned Senior Standing Counsel Ms. Mehta waives service of notice of rule on behalf of the respondent-State. 4. By this petition under Article 227 of the Constitution of India, the petitioner has prayed for quashing and setting aside the Assessment Order passed under section 144 read with section 144D of the Income Tax Act, 1961 [for short 'the Act'] for Assessment Year 2023-24 passed on 14.03.2025 making addition of Rs. 20,31,39,614/- without considering the submissions and documentary evidence filed by ....
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....led to deduct TDS under Section 194Q of the Act on the purchases amounting to Rs. 60,66,36,517/-. In light of these observations, the petitioner was called upon to provide an explanation, along with documentary evidence, regarding non-deduction of TDS under Section 194Q of the Act on the purchases, particularly in the context of the claimed deduction of TDS on sales of less than Rs. 50 lakhs. 5.5 In response, the petitioner filed a detailed submission on 04.01.2025 and 24.02.2025, providing a comprehensive explanation regarding the discrepancies raised in the notice. With respect to the alleged non-deduction of TDS under Section 194Q of the Act on purchases, the petitioner clarified that TDS was not deducted only on the amount of Rs. 54,....
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....d challans, ledger accounts and various other documents to substantiate the claim. The Petitioner also requested for hearing through video conferencing mode. 5.6 Without duly considering the replies and supporting documents, Respondent No. 1 issued a show-cause notice on 06.03.2025 at 08:25 p.m., directing the Petitioner to explain why disallowance under Section 40(a)(ia) of the Act, amounting to Rs.20,31,39,614/-, should not be made on the grounds that the Petitioner allegedly failed to furnish documentary evidence to substantiate high sea purchases and has allegedly not deducted TDS @ 0.1% on the gross purchases of Rs. 66,15,12,364/- as required under Section 194Q of the Act. The petitioner was also asked to submit the response on or b....
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....sed under section 144 i.e. Best Judgment Assessment without considering the reply filed by the petitioner in response to the show cause notice for the proposed addition. It was therefore submitted that there is a clear breach of principles of natural justice as well as the provisions of section 144B of the Income Tax Act, 1961. Considering the above submissions, issue Notice for final disposal returnable on 6th May, 2025. By way of ad interim relief, no coercive action shall be taken by the respondents during the pendency of this petition. To be listed on top of the Board. Direct service through email is permitted." 7. The respondent has filed the affidavit-inreply making the following averments: "3. I....