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TMI Blog2024 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel Mr. Karan Sanghani for the respondent. [2] Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of Rule for the respondent. [3] Having regard to the controversy in narrow compass in the matter and with the consent of learned advocates appearing for the respective parties, the matter is taken up for hearing. [4] By this petition under Article 226 of the Constitution of India, the petitioner has prayed to quash and set aside the assessment order dated 28th March 2024 passed under Section 143 (3) read with Section 144B of the Income Tax Act, 1961 (for short, "the Act") for the Assessment Year 2022-23. [5] The brief facts of the case are that the petitioner, who is engaged in the busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice, issued summons under Section 133 (6) of the Act to the various parties and thereafter, the respondent - Assessing Officer, considering the response to such summons, made addition of Rs.8,96,65,832.2 as unexplained expenditure by invoking the provisions of Section 69C read with Section 115BBE of the Act and penalty proceedings under Section 271AAC (1) of the Act was also initiated for levy of penalty of Rs. 3,82,00,000/-. [6] Learned advocate Mr. Gandhi for the petitioner, therefore, submitted that the petitioner has not been provided any opportunity of hearing after submission of the reply to the show cause notice for the proposed addition to be made and the respondent - Assessing Officer has undertaken an inquiry and accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestigation to arrive at the conclusion in the assessment as the assessee has not discharged its onus to prove that the transactions in respect of unsecured loans, purchase are genuine in absence of any documentary evidence to substantiate such transactions. [11] It was, therefore, submitted that in response to the show cause notice also, the petitioner failed to submit any documentary evidence to prove the identity, creditworthiness and genuineness of the transactions and therefore, it was incumbent upon the Assessing Officer to make inquiry by issuance of notice under Section 133 (6) of the Act to arrive at the conclusion in respect of the unsecured loan and purchases. [12] It was, therefore, submitted that the assessee has an alternati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "[12] It is not in dispute that the Assessing Officer did not supply copy of reply received pertaining to the pursuant to the notice issued under Section 133 (6) of the Act. After issuance of the show cause notice in the form of draft assessment order, no any opportunity of cross-examination of the parties whose reply is considered to make addition under Section 68 of the Act was granted to the petitioner. This Court, in the case of Dineshkumar Chhaganbhai Nandani (supra) and in the case of Darshan Enterprise (supra) and in the case of Prakashchandra Chhotalal Shah (supra), in similar facts, after referring to the relevant provisions under Section 144B of the Act, allowed the petitions quashing and setting aside the assessment order and rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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