KEM Hospital And Seth G. S. Medical College Employees Co-op Credit Society Ltd. Vs National Faceless Assessment Centre (Bombay High Court)
Material Facts
The petitioner challenged the final Assessment Order dated 28.09.2022 passed under Sections 144 and 144B of the Income-tax Act, 1961, the Notice of Demand issued under Section 156 on the same date, and the Show Cause Notice initiating penalty proceedings under Section 270A.
The petitioner contended that the Show Cause Notice dated 05.03.2022 proposed an addition of ₹2,69,05,368 to its income. However, the final Assessment Order made an addition of ₹9,81,95,173 without providing any opportunity to explain why such enhanced addition should not be made. According to the petitioner, the enhanced addition was based on the balance sheet and Profit and Loss Account submitted in response to the Show Cause Notice.
Procedural History
- A Show Cause Notice dated 05.03.2022 proposed an addition of ₹2,69,05,368.
- The petitioner submitted its response on 03.08.2022.
- On 28.09.2022, the Assessing Officer passed the final Assessment Order under Sections 144 and 144B, making an addition of ₹9,81,95,173, and issued a demand notice under Section 156 along with a Show Cause Notice for penalty proceedings under Section 270A.
- The petitioner challenged these actions before the Bombay High Court.
Legal Issue(s)
- Whether an assessment order under Sections 144 and 144B of the Income-tax Act could make an enhanced addition beyond the amount proposed in the Show Cause Notice without giving the assessee an opportunity to respond.
- Whether the impugned assessment order was liable to be quashed for lack of such opportunity.
Relevant Statutory Provisions
- Sections 144, 144B, 156 and 270A of the Income-tax Act, 1961.
Petitioner’s Submissions
