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2022 (2) TMI 690 - HC - Income TaxValidity of assessment u/s 153C - entitled to file reply/objection to the satisfaction note furnished - Denial of natural justice - whether before passing the impugned Assessment Orders, the objections/ representations of the petitioner against initiation of the impugned proceedings u/s 153C were required to be considered or not and if not done, whether it is a violation of principle of natural justice? - HELD THAT:- Where any proceedings u/s 153C is initiated against the person, other than the searched person in whose case the power under Section 132 the search has been carried out, is entitled to file reply/objection to the satisfaction note furnished to that person by the Jurisdictional Assessing Officer (other than the Assessee Searched) and once those objections are furnished, a reasonable time is to be furnished. In the case of Vijaybhai N. Chandrani [2013 (7) TMI 740 - SUPREME COURT] the Apex Court though directed alternative remedy to be resorted to, it had permitted 15 days’ time once the objections were filed and the Assessing Authority is held duty bound to consider such objections and thereafter, to direct the Assessee to file a return of Assessment year in question. Thus, giving of an opportunity is a must before proceeding against the person other than searched person after providing note of satisfaction and passing of a reasoned and speaking order after such opportunity is made available and the assessee avails such opportunity to file objection. In the instant case, we could notice from the material which has been furnished and the objections were raised against the satisfaction note supplied by a speaking order and those objections have been disposed of on 27.12.2021. This Has happened subsequent to the filing of the present petition and therefore, this petition would not survive as the essential prayer was to direct the authority concerned to consider the objections. Request of one week time is made to reply to the final show cause notice dated 27.12.2021 which has been issued after disposing of the objections, as the apprehension on the part of the petitioner is of framing of the Assessment on or before 31.12.2021 and the demand raised in the last show cause notice has been almost doubled. Noticing the disposal of the objections on 27.12.2021 and issuance of demand on 27.12.2021 itself, the petitioner shall be at liberty to make a request to the authority concerned of grant of reasonable time of minimum one week for him to reply and let the same be considered by the authority concerned. As this petition is disposed of without issuance of notice in the circumstances mentioned above which developed during pendency, petition is though not entertained, request to permit the adjournment before the Assessing Officer is permitted considering the date of disposal and final show cause notice.
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