BVR Projects Vs Assessment Unit (Andhra Pradesh High Court)
The petitioner, a partnership firm engaged in the business of construction, filed its return of income for Assessment Year 2024-25 declaring a total income of Rs.35,63,490/-. The first respondent issued an intimation under Section 144B of the Income Tax Act, 1961 dated 24.06.2025 along with a notice under Section 143(2). In response, the petitioner submitted its financial statements, tax audit report, computation, and other details on 09.07.2025. Thereafter, a notice under Section 142(1) was issued through the Revenue’s e-proceedings portal.
Subsequently, the first respondent issued a show cause notice under Section 144 dated 28.02.2026, proposing additions of Rs.5,22,51,078/- and requiring the petitioner to submit objections by 13:02 hours on 06.03.2026.
The petitioner contended that the notice was issued on a Saturday and the following day, 01.03.2026, was a Sunday, making the time granted for filing objections unreasonable. It further contended that the assessment order dated 10.03.2026 was passed in violation of the Standard Operating Procedure dated 03.08.2022 governing faceless assessments under Section 144B(6)(xi). According to Clause N.1.3.1 of the SOP, an assessee is to be given seven days to respond to a show cause notice. The petitioner asserted that since the stipulated period was not provided, the assessment order was liable to be set aside on the ground of violation of the principles of natural justice.
