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2022 (10) TMI 376 - HC - Income TaxValidity of reopening of assessment proceedings - unexplained loan receipts - as argued notice received prior to finalisation of the impugned assessment had granted only two days for filing of reply - HELD THAT:- The assessment made in the hands of the company for the earlier year had come to be challenged . [2022 (4) TMI 1456 - MADRAS HIGH COURT] a learned Single Judge of this Court dismissed the writ petition, granting liberty to the petitioner company to file a statutory appeal within a time frame fixed by the Court. All the matters relating to determination of the issue as to whether the cash credits resulting from the loans allegedly given by R.Srinivasan, are genuine. It is appropriate that the aforesaid issue be decided by the appellate authority, who would have the requisite mechanism to call for various relevant details and determine the facts in a proper manner. Petitioners draws attention to the fact that the notice received prior to finalisation of the impugned assessment had granted only two days for filing of reply. The notice is dated 24.12.2019 and calls for a reply to be filed on 26.12.2019. On 26.12.2019, the petitioner has written to the Department asking for various documents relied upon in notice dated 24.12.2019 and seeking more time to respond to the same. The impugned order of assessment has come to be passed on 26.12.2019, without reference to the petitioner's request. Though the above position might be construed as a violation of principles of natural justice, we are not inclined to set aside the impugned order merely on this score, bearing in mind the facts and circumstances as noted above. The appeals of the company as well as R.Srinivasan involving identical issues are before the Appellate authority and thus, it would stand to reason that the case of the petitioners is also taken up in appeal. In my considered view, a violation of natural justice is not fatal in all situations and a wholistic view should be taken of the issue, such that the interests of all parties are properly balanced. The powers of an appellate authority are co-terminus with that of an assessing authority and the details sought for by the petitioner may well be supplied to the petitioner by the appellate authority to ensure that the petitioner is granted full opportunity to put forth his case in appeal. In fine, the impugned assessment orders are upheld and the petitioner is granted liberty to file appeal, if he so desires, within a period of two (2) weeks from today.
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