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2011 (2) TMI 1128 - HC - Income TaxViolation of the principles of natural justice - demand raised - Held that:- It is clear that the law is well settled in the case of Kothari Filaments v. Commissioner of Customs (2008 (12) TMI 28 - SUPREME COURT) that when a statutory authority has passed an order on the basis of the materials which were known only to itself and on the basis of such materials arrived at the conclusions without supplying copies thereof or without providing opportunity of inspection of such document - it can be safely concluded that no effective opportunity was given to the assessee to respond to the field visit report said to have been handed over to the assessee's representative on 1.12.2010 when on the same day, the hearing of the assessment proceedings were concluded - since, the assessee was entitled to prior notice of any report or material which the Assessment Officer, intended to rely upon and without such advance notice, by merely claiming that the said reports are available on the internet, does not and cannot satisfy the mandate of rules of natural justice Regarding payment made in cash - Held that:- It is open for the petitioner to furnish to the satisfaction of the Assessing Officer the circumstances under which the payment in the manner prescribed in Section 40A(3) was not practicable or would have caused genuine difficulty to the payee - With regard to the exemption to make the payment in the manner prescribed under Rule 6-DD, is not applicable to the petitioner herein as he is a trader - impugned assessment order is hereby quashed & revenue is directed to serve copies of the reports sought to be relied upon by the revenue against the assessee. Decided in favor of the assessee by way of remand.
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