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2019 (3) TMI 437 - MADRAS HIGH COURTPrinciples of natural justice - no reason for passing the impugned order of assessment stated in the first notice of proposal - notice of proposal dated 22.11.2013 does not indicate the proposal to impose penalty, whereas the impugned order imposes penalty - Held that:- Perusal of the reasons stated in the impugned order would show that the Assessing Officer did not make the proposal for reversing the ITC. On the other hand, the Assessing Officer has only given certain facts and figures in the tabular column without stating those two reasons, which are stated as the first time in the impugned order. Therefore, the very order of assessment passed based on those two reasons, is in violation of principles of natural justice, since no notice of proposal was issued to the petitioner stating those reasons for imposing tax. Further, it is seen that the said notice of proposal does not indicate that the Assessing Officer has proposed to impose penalty as well. In the absence of such notice, the Assessing Officer passed the impugned order of assessment imposing penalty also at the rate of 150% - the imposition of penalty without any notice of proposal to that effect, violates the principles of natural justice and consequently, cannot be sustained. Above all, no personal hearing was given to the petitioner before concluding the assessment. The impugned assessment order cannot be sustained and consequently, the matter has to go back to the Assessing Officer to re-do the assessment after hearing the petitioner in person - petition allowed by way of remand.
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