2025 (10) TMI 662

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....earned Senior Standing Counsel Mr. Varun Patel for the respondent. 2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule for and on behalf of the respondent. 3. Having regard to the controversy arising in this petition which is in a narrow compass, with the consent of the learned advocates for the parties, the same is taken up for hearing. 4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged and prayed for quashing and setting aside the impugned demand notice dated 31.3.2023 issued by the respondent No. 2 (hereinafter referred to as 'the respondent' for short) under Section 156 of the Income Tax Act, 1961 (hereinafter referred to a....

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.... the provisions of Section 148A(b) of the Act, requesting to show cause to as why notice under Section 148 of the Act should not be issued against the petitioner. Subsequent to the notice issued by the respondent, an order under Section 148A(d) of the Act was passed on 26.3.2022 declaring the petitioner's case a fit case for assessment and further declaring that an amount to the tune of Rs. 3,05,18,951/- has allegedly escaped income for A.Y. 2018-19. 5.1 It is the case of the petitioner that after the case being dormant for several months, suddenly in the year 2023, in pursuance of notice dated 26.3.2022 issued under Section 148A(d) of the Act read with Section 148 of the Act, a notice dated 1.2.2023 was issued under Section 142(1) of th....

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....g the respondent to grant an adjournment of 15 days, however, without granting opportunity of personal hearing, respondent passed the impugned assessment order on 31.3.2023 under Section 147 read with Section 144 of the Act and held that an amount of Rs. 3,05,18,951/- was to be made as an addition to the petitioner's income and further on the very same day i.e. 31.3.2023, the impugned demand notice under Section 156 was issued demanding total payable income tax on the reassessed income including interest along with penalty proceedings initiated under Section 271AAC, Section 271F and Section 272A of the Act. 5.2 It is being aggrieved and dissatisfied by the impugned order and demand notice dated 31.3.2023, issued by the respondent No. 2 b....

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....iven adequate opportunity of being heard and therefore, it is denied that impugned assessment order is passed in violation of principles of natural justice. 8. Having heard the learned advocates for the respective parties and perused the material on record, certain facts are not in dispute. It is not in dispute that the notice under Section 142(1) of the Act was issued on 22.3.2023. It is also not in dispute that the petitioner had requested for personal hearing. However, without granting opportunity of personal hearing, the order under Section 147 read with Section 144 of the Act was passed on 31.3.2023. It is a fundamental proposition of law that other side should be heard before any order is passed. The maxim audi alteram partem is br....