TMI Blog2020 (7) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... ority is required to be heard before any orders are passed and more so, in the case of this nature, where the assessee becomes liable to pay huge taxes. The third respondent- PCIT shall grant an opportunity to petitioner to put forth its case so far as the application for stay is concerned. - No coercive steps to recover the tax amount shall be initiated till PCIT passes his order. - WRIT PETITION No. 8531 OF 2020 (T-IT) - - - Dated:- 20-7-2020 - THE HON'BLE MR. JUSTICE P. S. DINESH KUMAR FOR THE PETITIONER : SHRI. V. RAGHURAMAN, ADVOCATE) [ THROUGH VIDEO CONFERENCE ] FOR THE RESPONDENT : SHRI. E.I. SANMATHI, ADVOCATE FOR R1 R3) [ THROUGH VIDEO CONFERENCE ] ORDER Though this matter is listed for orders regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has disallowed expenditure of nearly ₹ 7.87 crores, which the petitioner has incurred by making payment to its contractors. The list of eighteen such contractors has been recorded in the assessment order. Notices were issued to the said contractors and they have given reply to the Assessing Authority. However, without properly appreciating the replies, the Assessing Authority has disallowed the expenditure and assessed the payment of tax of ₹ 3.35 Crores. 5. To substantiate his submission, Shri Raghuraman adverted to letter dated 24th December 2019 written by M/s SanWe MEP Contracting Private Limited and email by M/s Credai Calicut on 26th December 2019. He submitted that these replies were given prior to date of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rores, by calling the expenditure as 'bogus'. As noticed herein, the replies of two contractors are on record and the same are admittedly received prior to the date of assessment order. Therefore, saddling on the assessee to pay taxes by disallowing the expenditure without appreciating replies received under Section 133(6) of the Income Tax Act will meet an assessee with consequences of making the payment. It is always expected of the Assessing Authority to take note of and examine the replies of the recipients of such expenditure. In the instant case, it appears the same is overlooked. 9. Admittedly, an application was filed before the PCIT seeking stay of assessment order. The same has also been disposed of without hearing the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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