Sri Lakshmi Narasimha Swamy Vari Devasthanam Vs Assessment Unit (Telangana High Court)
Telangana High Court held that non-granting of at least seven days for furnishing reply is against the Standard Operating Procedure [SOP] dated 03.08.2022 issued by department. Accordingly, notice and order thereof is not sustainable.
Facts- The instant is a petition which has been filed by the petitioner under Article 226 of the Constitution of India praying the Court to declare the Assessment Order dated 11.03.2025, passed by respondent No.1 for the assessment year 2023-24 u/s. 143(3) read with Section 144 B of the Income Tax Act, 1961 as illegal, void-ab-initio, violative of the principles of natural justice and being violative of Articles 14, 19(1)(g) and 265 of the Constitution of India; and also to set aside the show-cause notice on the proposed variations for the assessment year 2023-24, dated 28.02.2025.
Conclusion- Held that the show-cause notice having been issued on 28.02.2025, the Department had around thirty one days time before the assessment order could had been passed. In view of the same, if the petitioner instead of being called upon on 05.03.2025, if he would had been called upon on 07.03.2025 or on 08.03.2025, the requirement as per the SOP could had been met and the assessment order would still been passed with clear two or three weeks time left with the Department. The fact that the petitioner after having submitted his reply to the non-compliance report on 29.10.2024, the Department took almost four months’ time for issuance of the next show-cause notice i.e. the show-cause notice dated 28.02.2025. The Department itself could had issued the show-cause notice on an earlier date so that they themselves would have had reasonable time left with them for comfortably completing the assessment, for which again the Department alone which has to be held responsible. The petitioner cannot be blamed for such actions on the part of the Department in any manner. Thus, the show-cause notice dated 28.02.2025 and the assessment order dated 11.03.2025 are not sustainable and the same deserve to be and are accordingly set aside / quashed.
