No Income tax penalty proceedings if insufficient time was granted to furnish reply

Aircel Limited Vs DCIT (Madras High Court) Conclusion: Income tax penalty proceedings initiated against the company under Section271(1)(c) was quashed as no sufficient time was given for reply and a personal hearing rendered the proceedings procedurally unfair and legally unsustainable. Held: In the instant case, show cause notice dated 27.03.2024 (for FY 2016–17) was uploaded on GST portal at 08:29 p.m., requiring reply with supporting documents by 06:09 p.m. next day (28.03.2024). Assessee contended that hardly 24 hours for reply; no opportunity of personal hearing was given  before passi...