Lack of access to Seized Documents: Madras HC directs to treat Income Tax Assessment Order as SCN

The Madras High Court has directed the Income Tax Department to treat an assessment order as a show cause notice (SCN) due to their failure to provide the assessee, Hussain Mohideen, access to seized documents. Mohideen had challenged the assessment order for 2022-2023, alleging a breach of natural justice principles. The court noted that the petitioner was not given seized materials from M/s J.M. Jain Group, which were crucial for his defense. Although the petitioner did not request these documents earlier, the court acknowledged the department's failure to provide them initially. Consequently, the court imposed a cost of Rs. 10,000 on the petitioner and directed the department to furnish the seized materials within two weeks. The petitioner will then have two weeks to respond, with the department required to offer a personal hearing via video conferencing before issuing a fresh assessment order within three months.