Arris Estates Private Limited Vs Assessment Unit & Anr (Gujarat High Court)
Gujarat High Court held that non-granting of personal hearing in spite of being requested is clear violation and breach of principles of natural justice. Accordingly, order quashed and remanded to AO for fresh de novo order.
Facts- The petitioner is engaged in business of renting immovable properties. During scrutiny assessment, the respondent issued a show-cause notice on 10.02.2024 whereby, two additions were proposed viz one addition of Rs.16,46,55,112/- under Sec.68 of the Act in respect of long term borrowings and two addition of Rs.15,87,46,545/- in respect of fresh loans and advances to others.
Subsequent to the notice dated 10.02.2024, a request for adjournment was made by the petitioner. Thereafter, another show-cause notice was issued by the respondent on 22.02.2024 and the petitioner was granted time till 27.02.2024 to furnish its reply. The petitioner again requested for short adjournment. Therefore, another notice was issued on 29.02.2024, wherein, time was extended till 04.03.2024 for the petitioner to furnish the details as envisaged. The petitioner communicated its reply vide communication dated 04.03.2024 and also requested to provide an opportunity of being heard vide video conferencing.
It is the case of the petitioner that despite the request being made for hearing through vide conference, the respondent straightaway framed the assessment u/s.143(3) r/w. Sec.144B of the Act on 15.03.2024 raising the demand of Rs.15,92,65,390/-.
