Case Law Details
MMG Constructions LLP Vs Union of India (Karnataka High Court)
Ordinarily alternative remedy if not exhausted by the assessee, a writ petition is not maintainable, but in the exceptional circumstances as held by the Hon’ble Apex Court in the case of Magadh Sugar & Energy Limited (supra), violation of principles of natural justice certainly warrants interference. This legal principle is followed by the Hon’ble High Court of Bombay in the case of Vodafone India Ltd. (supra). We have no reason to differ from the judgment of Vodafone India Ltd. (supra), since in identical circumstances where a response was sought by the Assessing Officer to the show cause notice, giving less than 24 hours, it has been held to be arbitrary resulting in palpable injustice. Thus, without going into merits or demerits of the case, it would be suffice in restoring the proceedins to the Assessing Officer to provide reasonable opportunity of hearing to the petitioner with liberty to file additional reply, annulling the assessment order.
Accordingly, we set aside the assessment order and the demand notices. The proceedings are restored to the file of the Assessing Officer for reconsideration.
The petitioner – assessee is at liberty to file additional reply to the notices issued, along with documents, if any, within a period of four weeks from the date of receipt of the certified copy of the order. The Assessing Officer shall consider the same in accordance with law and conclude the assessment in an expedite manner.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
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NFAC always gives very less time for responding to notices, filing particulars etc. and completes the cases in an hurried manner and thereby creating huge unrealistic demands. Many affected assessees are knocking the doors of the High Court through writ. All affected can not approach the court. They are left with no option than to file an appeal after paying the 20% of the demand and thereby they are put to lot of trouble. Whether any statistics is available as to the success rate regarding the percentage cases completed by NFAC, which are neither challenged in High Courts nor appealed against and the results therefor.
Every assessee is not capable to approach High court .. There should be defined time in act itself to avoid abuse.