Praveen Sanjiv v. ITO (2024) 300 Taxman 33 (Mad.)(HC)

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Unexplained investments-Violation of principle of natural justice-Order passed without considering the documents submitted by the assessee-Assessment order is set aside and matter is remanded for reconsideration from stage of reply to show cause notice cum draft assessment order.[S. 69, 148, 148A(b), 148A(d), Art. 226]

Reassessment notice under section. 148 is initiated against the assessee. Proceedings under section 148 were initiated against  the assessee in respect of two alleged purchases of immovable property. Assessment order is  passed making addition to income of assessee. On writ the Court held that  the  assessee had placed on record reply to show cause notice cum draft assessment order and produced list of attachments thereto including I.T. acknowledgment of assessee’s mother and father, documents pertaining to sources of income and bank statements.  Assessee had previously enclosed all documents pertaining to purchase of relevant immovable property and construction undertaken thereon. Court held that assessee having submitted a reply along with relevant documents, non consideration thereof violated principles of natural justice  assessment order is unsustainable. Accordingly the  assessment order is  set aside and matter is  remanded for reconsideration from stage of reply to show cause notice cum draft assessment order.  (AY. 2015-16)

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