Shyam Sales Corporation Vs ITO (ITAT Raipur)
ITAT Raipur held that time period of 7 days provided to the assessee company to revert back to show cause notice was unreasonably short, and thus, violative of principles of natural justice. Accordingly, show cause notice/ draft assessment order set aside and matter remitted back.
Facts- The case of the assessee was selected for complete scrutiny assessment and notice u/s 143(2) of the Income Tax Act, 1961 was issued. Consequently, notice u/s 142(1) of the Income Tax Act, 1961 were also issued. After considering the material available on record and proper opportunity, assessment order u/s 143(3) r.w.s. 144B was passed for the year under consideration, by making an addition on account of bogus purchase treating the same as unexplained expenditure u/s 69C of the Act for Rs.1,23,97,06,013/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Jurisdictional High Court of Chhattisgarh in the case of MM Wonder Park Private Limited vs. Union of India & Others, in Writ Petition (T) No.172/2022, dated 17.06.2022, while dealing with the issue of reasonable time to respond towards the show cause notice u/s 148A(b) of the Act, wherein Hon’ble High Court had observed that the time period of 7 days provided to the assessee company vide notice u/s 148A(b) of the Act was unreasonably short, and thus, violative of principles of natural justice.
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