Court emphasized the necessity of affording parties an opportunity for a fair hearing and access to evidentiary materials in tax assessments.

COMMON ORDER

By this Common order, all these writ petitions are being disposed of.

2. Heard the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents.

3. In these Writ Petitions, the petitioner has challenged the draft assessment order dated 04.03.2025, assessment order dated 03.04.2025 and the consequential penalty orders dated 31.12.2025 passed for the Assessment Year

2022-2023.

4. Earlier, the petitioner was issued with a detailed Show Cause Notice dated 11.02.2025. There is no dispute regarding the issuance of the said notice.

The petitioner submitted a reply to the show Cause Notice on 20.02.2025. 5. However, on the same date, i.e., 20.02.2025, the petitioner also submitted a representation requesting further time to submit additional details and sought an extension up to 07.03.2025. Despite the request for extension of time, the respondent passed the impugned draft assessment order dated

04.03.2025.

6. The draft assessment order dated 04.03.2025 was challenged by the petitioner in W.P.No.12597 of 2025 on 04.04.2025. However, the petitioner was unable to secure any interim order from this Court.

7. Consequently, the final assessment order dated 03.04.2025, impugned in W.P.No.13923 of 2025, was passed for the Assessment Year 2022-2023. Pursuant thereto, consequential penalty orders dated 31.12.2025 were passed under Section 271AAC and Section 270A of the Income Tax Act, 1961, which are impugned in W.P.Nos.5095 & 5099 of 2026.

8. As per Section 144C of the Income Tax Act, 1961 the last date for passing the draft assessment order for the Assessment Year 2022-2023 expired on 14.03.2025.

9. The draft assessment order relies upon information obtained from 14 out of 30 suppliers, based on which alleged discrepancies in turnover declared in the books of accounts have been arrived at. The discrepancies were alleged found due to inconsistencies between the statements recorded and the books of accounts maintained by the petitioner.

10. The petitioner is entitled to be furnished with the statements obtained from the suppliers, which form the basis of the proceedings initiated pursuant to the Show Cause Notice dated 11.02.2025. The failure to supply these materials has caused serious prejudice to the petitioner and amounts to a violation of the principles of natural justice.

11. Considering the facts and circumatances of the case, this Court is inclined to quash the impugned orders and the cases are remitted back to the 1^st respondent from the stage of the Show Cause Notice dated 11.02.2025. The petitioner shall file a reply to the Show Cause Notice within a period of 30 days from the date for receipt of a copy of this order.

12. Simultaneously, the petitioner may seek all such information and documents as may be additionally required. The 1^st respondent shall furnish the same as expeditiously as possible and thereafter, a further period of 30 days shall be granted to the petitioner to submit an additional response, if any.

13. Upon receipt of the replies from the petitioner, the 1^st respondent to pass final orders on merits and in accordance with law as expeditiously as possible.

14. Needless to state, before passing any final order, the petitioner shall be afforded an opportunity of personal hearing.

15. These Writ Petitions stand disposed of with the above observations.

No costs. Connected Writ Miscellaneous Petitions are closed.