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of <h1>Short COVID-era deadline to reply to s.144B draft tax assessment notice held unfair; assessment and notices set aside.</h1> The dominant issue was whether an assessment order under s.144B was vitiated for breach of natural justice due to an unreasonably short time granted to ... Validity of assessment order passed u/s 144B - shorter period granted to respond to SCN - HELD THAT:- As timeframe provided, to respond to the show cause notice-cum-draft assessment order dated 16.04.2021, was far too short, having regard to the fact that the pandemic was raging in the city at that juncture. In fact, the pandemic continues to prevail even now, although its severity may have lessened. Therefore, as prayed, the impugned assessment order and consequential notices are set aside with liberty to respondent no. 1/revenue to pass a fresh assessment order and consequential orders, if any, after considering the reply dated 22.04.2021 filed by the petitioner. Respondent no. 1, before passing the fresh assessment order, will accord a personal hearing to the authorised representative of the petitioner. For this purpose, respondent no.1/revenue will take recourse to the videoconferencing ('VC’) mechanism. In this behalf, respondent no.1/revenue will issue a written notice, indicating the date and time of the hearing, and transmit the VC link, albeit, to the registered e-mail id of the petitioner. Issues:1. Exemption from filing court fee and affidavits2. Stay on impugned assessment order and penalty proceedings3. Quashing of assessment order, penalty proceedings, demand notice, and computation4. Fresh assessment of income for the petitioner companyExemption from filing court fee and affidavits:The petitioner sought exemption from filing court fee and sworn/notarised/affirmed affidavits. The court allowed the application subject to exceptions, directing the petitioner to submit the necessary documents within three days of the court resuming normal work patterns.Stay on impugned assessment order and penalty proceedings:The court issued notice on the application seeking a stay on the operation of the impugned assessment order and consequent proceedings. The respondent's counsel accepted service and informed the court of their decision to argue based on the available record. With the consent of the parties, the court proceeded with the final hearing and disposal of the writ petition.Quashing of assessment order, penalty proceedings, demand notice, and computation:The petitioner challenged the impugned assessment order, penalty proceedings, demand notice, and computation related to the Assessment Year 2018-19 under the Income Tax Act, 1961. The petitioner contended that the timeline provided to respond to the show cause notice was inadequate due to pandemic-related circumstances. The court found the timeline unreasonable and set aside the assessment order and consequential notices, allowing the revenue to pass a fresh assessment order after considering the petitioner's reply.Fresh assessment of income for the petitioner company:The court directed the revenue to conduct a fresh assessment after providing a personal hearing to the petitioner's representative through video conferencing. The revenue was instructed to issue a written notice with the hearing details and transmit the video conferencing link to the petitioner's registered email address. The writ petition was disposed of accordingly, with a clarification that the order would not impact the case's merits. The pending application was closed, and the case was consigned to the record.
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