Court sets aside assessment orders for violation of natural justice; directs consideration of objections before proceeding further.

The court found that the assessment orders were passed without considering the petitioners' objections, violating the principle of natural justice. The court set aside the orders and directed the authorities to address the objections before proceeding further. The decision was based solely on the procedural error, not the merits of the case. The Assessing Officer was instructed to follow the law in handling the objections, and the assessment proceedings would be determined by the outcome of the objections' consideration. The writ petition was disposed of with these directions to ensure the petitioners' rights were respected.

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Issues involved:
Violation of principle of natural justice in passing assessment orders without considering objections/representations of petitioners.

Analysis:
The petitioners challenged the assessment orders dated 22nd May, 2021 under Sections 153C and 144 of the Income Tax Act, 1961, alleging that the orders were passed without addressing their objections/representations dated 23rd April, 2021 and 4th May, 2021. The petitioners contended that the orders were in violation of the principle of natural justice as they were not given a hearing or their objections were not disposed of before the assessment orders were passed. The court noted that the Income Tax Authorities failed to demonstrate that the objections were considered and disposed of before passing the impugned assessment orders.

The main issue before the court was whether the petitioners' objections/representations against the initiation of proceedings under Section 153C of the Income Tax Act were duly considered before passing the assessment orders. The court found that the representations were not addressed before the orders were issued, leading to a clear violation of the principle of natural justice. The court, without delving into the merits of the assessment orders or the objections, set aside the impugned orders and remanded the case to the concerned authorities to consider and dispose of the representations in accordance with the law.

The court emphasized that the decision to set aside the assessment orders was solely based on the violation of the principle of natural justice and not on the merits of the case. The respondent Assessing Officer was directed to proceed strictly in accordance with the law while addressing the representations/objections of the petitioners. The court ordered that the continuation of the assessment proceedings would depend on the outcome of the final order to be passed on the objections/representations of the petitioners. The writ petition was disposed of with these directions, ensuring that the petitioners' objections were given due consideration and a fair opportunity of hearing was provided.

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