Karnataka HC: Quashes Revenue’s ‘arbitrary’, non-judicious order u/s 201(1); Assessee entitled to appeal remedy

HC allows assessee’s writ, quashes AO’s order u/s 201(1)/(1A) holding assessee as being in default for violating TDS provisions, being passed in breach of natural justice principles; Allows appeal remedy to assessee u/s 246A against AO’s order, since it was  passed without giving due opportunity to assessee to substantiate its defense; Observing that assessee was  saddled with penalty along with tax  liability and AO further resorted to coercive steps to recover demand,  holds entire approach by AO ‘arbitrary’; Further, holds AO’s order  lacks ‘judicious approach’ as it had no reference to information furnished by assessee.

To Read complete text of judgement, click here Remco BHEL-Kar HC