SCN Provided only One Day Time for Reply: Madras HC sets aside Income Tax Assessment Order for Breach of Natural

The Madras High Court set aside an Income Tax assessment order due to a procedural lapse where the taxpayer was provided only one day to respond to a show cause notice. The court found this inadequate and a breach of natural justice. The case arose when the taxpayer received a show cause notice (SCN) from the Income Tax department and was given only one day to respond. The taxpayer argued that this short notice period denied them a reasonable opportunity to present their case effectively. The court agreed, emphasizing the importance of adherence to principles of natural justice in such proceedings. Consequently, the assessment order was set aside, and the matter was remitted back to the assessing officer for reconsideration.