Question ID :
40524
Disallowance made without any inquiry through notices u/s. 142(1)
The assessee was issued show-cause notice under section 143 (2) for scrutiny, followed by notice u/s. 142(1) r.w.s. 129 of the Act along with a detailed questionnaire enclosed requesting the assessee to submit the details which were timely submitted by the assessee.
After reply from the assessee, Further Notices u/s. 142(1) were issued for the cash sales made to the certain customer and the assessee replied to it. In further 142(1) notices, there was nothing mentioned related to decline in the N.P. Ratio and disallowance of administrative expenses.
But in the order u/s. 143(3), disallowance of expenses was made without mentioning this issue in any of the show cause notice issued earlier.
Posted by
Hunny Badlani
on
Jan 01, 2020
Filed Under
DIRECT TAXES
The action is per se illegal and since disallowance is without notice u can challenge it in appeal.
Posted by
SIVADAS CHETTOOR on
Feb 25, 2020