Natural justice in tax assessment: curtailed notice period and lockdown-based hearing request justified writ interference and remand.

Tax assessment orders were held vulnerable where show-cause notices effectively expired before the assessment was completed, and the taxpayer had sought more time and a personal hearing during the COVID-19 lockdown. On those facts, the court treated the curtailed response period as a denial of reasonable opportunity and a breach of natural justice. Although a statutory appeal was available, writ jurisdiction was considered appropriate because the procedural defect went to the root of the assessments. The impugned orders were set aside and the matters remitted for fresh consideration after granting adequate time and a hearing.

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Issues: (i) Whether the assessment orders were vitiated for denial of reasonable opportunity and personal hearing in the face of the show-cause notices and the lockdown situation. (ii) Whether the writ petitions were maintainable notwithstanding the statutory appellate remedy, and what relief followed.

Issue (i): Whether the assessment orders were vitiated for denial of reasonable opportunity and personal hearing in the face of the show-cause notices and the lockdown situation.

Analysis: The show-cause notices granted seven days from the date of receipt, but the petitioner received them only on 23.03.2020 and the assessment orders were passed on 27.03.2020, before expiry of the time available. The petitioner had also sought additional time and a personal hearing, explaining that the COVID-19 lockdown prevented prompt production of documents. In the admitted factual circumstances, the short time granted was not a fair opportunity to defend a multi-year assessment.

Conclusion: The assessment orders were vitiated by gross violation of principles of natural justice and denial of fair opportunity.

Issue (ii): Whether the writ petitions were maintainable notwithstanding the statutory appellate remedy, and what relief followed.

Analysis: Although an appeal under the statute was available, the defect went to the root of the assessments because the petitioner had been denied a meaningful opportunity to object and produce evidence. That procedural infirmity justified interference in writ jurisdiction. The appropriate course was to set aside the impugned orders and remit the matters for fresh consideration after reasonable time and personal hearing.

Conclusion: The writ petitions were entertained and the assessment orders were set aside with a direction for fresh assessment on remand.

Final Conclusion: The petitioner succeeded on the ground of denial of natural justice, and the assessments were reopened for fresh adjudication after granting adequate opportunity and hearing.

Ratio Decidendi: A quasi-judicial tax assessment made before expiry of the time granted in the show-cause notice, and despite a substantiated request for more time and personal hearing during an admitted lockdown, is vitiated for denial of reasonable opportunity and may be corrected in writ jurisdiction despite the existence of an appellate remedy.

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