Sanjay Harichand Chugh S/O Harichand B. Vs Assessment Unit (Karnataka High Court)
The Karnataka High Court considered a petition challenging the assessment order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for assessment year 2022-23. The petitioner also challenged the related computation sheet, demand notice, penalty orders, computation sheets, demand notices and the order rejecting the application under Section 154 of the Act. The petitioner contended that the show-cause notice dated 12.02.2024 required a response by 18.02.2024, allowing only six days. According to the petitioner, this violated the principles of natural justice and the SOP applicable to faceless assessment. Reliance was placed on the Court’s earlier order in W.P.No.12923/2023.
The Revenue submitted that although the petitioner challenged the last show-cause notice, the petitioner had not demonstrated due diligence in participating in the earlier proceedings. The Court, however, focused on the time provided under the show-cause notice dated 12.02.2024. Referring to its observations in W.P.No.12923/2023, the Court noted that Clause N.1.3 of the applicable SOP requires at least seven days’ time for responding to a show-cause notice. Since the petitioner was provided only six days, the Court found that the prescribed time limit was in violation of the applicable SOP.
