Assessment Order Quashed for Breach of Natural Justice; Rs.5,000 Cost Imposed; Reassessment Ordered with Hearing.

The HC quashed the assessment order dated 26th April 2021, citing a breach of natural justice and non-application of mind by the Assessing Officer, who ignored the petitioner's submissions. The Court imposed a cost of Rs.5,000 on the officer, directing a donation to the PM CARES Fund. A different officer was ordered to reconsider the petitioner's submissions with a personal hearing and issue a new assessment order within six weeks. The petition was disposed of, ensuring compliance with natural justice principles.

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Issues involved:
Impugning assessment order for breach of natural justice and non-application of mind

Analysis:
The petitioner challenged an assessment order dated 26th April 2021, alleging that it was passed without considering the submissions made in writing on 23rd April 2021 and without granting a personal hearing. The High Court noted that the Assessing Officer had failed to properly consider the petitioner's responses, leading to a clear breach of principles of natural justice and a lack of application of mind. The Court highlighted that the Assessing Officer referred to a show cause notice proposing modifications in the returned income but ignored the petitioner's response on 23rd April 2021, which questioned the proposed modifications. This failure to acknowledge the petitioner's submissions was deemed unjust and contrary to the principles of natural justice.

The Court expressed dissatisfaction with the Assessing Officer's handling of the case, emphasizing that if the officer had duly considered the petitioner's responses, the need for court intervention would not have arisen. In light of the blatant disregard for the petitioner's submissions, the Court decided to quash the assessment order dated 26th April 2021, along with the consequent demand and show cause notices. The Court also imposed a cost of Rs.5,000 on the concerned officer, directing them to make a donation to the PM CARES Fund from their personal account. The officer was instructed to provide proof of payment within two weeks, failing which the petitioner's advocate could seek compliance through appropriate legal means.

Furthermore, the Court ordered that a different Assessing Officer should reconsider the petitioner's submissions from 23rd April 2021 and issue a new assessment order within six weeks, ensuring that a personal hearing is granted to the petitioner. This decision aimed to rectify the procedural errors and ensure that the petitioner's case is reviewed fairly and in compliance with the principles of natural justice. Ultimately, the petition was disposed of, providing a resolution to the issues raised regarding the assessment order and the violation of natural justice principles.

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