2025 (11) TMI 1869

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....er passed under section 143(3) read with section 144B of the Income-tax Act, 1961 ('the Act'), dated 29.03.2024, the Notice of Demand issued under section 156 of the Act dated 29.03.2024 as well as the impugned show- cause notice for levy of penalty issued under section 274 read with section 270A of the Act dated 29.03.2024 and 18.04.2024. 3. Vide order dated 09.05.2024, ad-interim relief was granted in terms of prayer clause (d). Such ad-interim relief was granted until 31.07.2024. 4. Meanwhile, it appears, that during the pendency of the present petition, an order imposing penalty was passed under section 270A of the Act dated 16.07.2024. This order was brought on record by the Petitioner by filing an additional affidavit affirmed o....

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....unt of the Petitioner were rejected, however, no show cause notice was ever issued on the said issue. Mr. Gandhi also submitted that even the Penalty Order was passed in gross violation of principles of natural justice, without granting sufficient opportunity of being heard. Further, he submitted that the penalty order was passed ignoring the order passed by this Court on 09.05.2024, staying the assessment order and the show cause notice for penalty. 6. Mr. Rattessar, the learned Counsel for the Respondent, on the other hand, submitted that there is no violation of principles of natural justice as the Petitioner was granted sufficient time to file reply. Further, the time of seven days as provided for in the internal SOP is flexible a....

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....given to the Petitioner to reply was inadequate. 8. Moreover, we also find that the Petitioner had sought a personal hearing. It is mandatory to provide a personal hearing in terms of section 144B(6)(viii) of the Act. The Petitioner has brought on record the email sent by Respondent No. 1 on 27.03.2024 at 11.30AM which stated that the virtual hearing was scheduled on the same day at 11.15AM. Thus, the notice of personal hearing was issued after the time for the personal hearing had lapsed. This was objected to by the Petitioner vide its reply dated 27.03.2024. The Petitioner has also attached screenshots of the portal, wherein it appears, that it had logged onto the portal, but the meeting was not started by the host. Thus, the Petitione....