BACHARANIANDA CHITTIAPPA PRAKASH Vs. NATIONAL FACELESS ASSESSMENT CENTRE

JUDGEMENT

(1.) The petitioner has sought for setting aside of the assessment order under Sec. 147 read with Sec. 144 read with Sec. 144B of the Income Tax Act, 1961 (for short 'the Act') at Annexure-A1; setting aside of the computation sheet at Annexure-A2 and notice of demand at Annexure-A3; penalty notice at Annexure-A4; penalty order at Annexure-A5 and computation sheet at Annexure-A6; notice of demand at Annexure-A7; notice under Sec. 148 of the Act at Annexure-B and notice under Sec. 226(3) of the Act at Annexure-C.

(2.) Sri. Annamalai.S., learned counsel for the petitioner would submit that the show-cause notice at Annexure-F dtd. 25/3/2022 was generated at 15:32 hours which provided for response to be made by 26/3/2022, which was wholly insufficient and the details mentioned at Para-5 of the show- cause notice regarding escapement of income amounting to Rs.81,22,25,541.00 is without any further clarification. It is submitted that the basis for the observation at Para-5 of the show-cause notice is that there were unexplained cash deposits. It is pointed out that the Authority has observed that the source of cash deposits/interest as detailed at Para-2 of the show-cause notice was not explained. It is submitted that, despite no details of the Bank Account of the petitioner having been provided, the show-cause notice is even otherwise cryptic and bereft of details which prevented the petitioner from making out any intelligible reply.

(3.) Having perused the show-cause notice at Annexure-F, there is merit in the contention regarding violation of principles of natural justice insofar as the notice was dtd. 25/3/2022 with direction that response to be made on or before 23:59 hours of 26/3/2022 which is wholly insufficient time afforded for any response. Even otherwise, there is ambiguity in the show-cause notice as the details of the Account, in which the deposits were made is not forthcoming from the show-cause notice. Accordingly, the proceedings post issue of show-cause notice are required to be set aside; the matter is relegated to the stage of issuance of show-cause notice at Annexure-F. The petitioner is at liberty to seek for clarification regarding Account numbers in which according to the Authority there were unexplained cash deposits. Upon clarification being made, the petitioner is at liberty to file his response to the show-cause notice at Annexure-F within a period of 30 days from the date of response being issued regarding the Bank Accounts, in which the deposits are stated to have been found.