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Court sets aside income tax assessment order for 2014-15 citing lack of natural justice The court set aside the income tax assessment order for the assessment year 2014-15 due to the violation of principles of natural justice. The petitioner ...
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Court sets aside income tax assessment order for 2014-15 citing lack of natural justice
The court set aside the income tax assessment order for the assessment year 2014-15 due to the violation of principles of natural justice. The petitioner was not served the show cause notice by e-mail, leading to their non-appearance at the hearing. The court emphasized the importance of proper service of notice to allow the assessee an opportunity to present their case. The petitioner was directed to appear before the Assessing Officer with a reply to the notice, and the assessment was to be completed within six weeks. The writ petition was disposed of with these directions, and no costs were imposed.
Issues involved: Violation of principles of natural justice in an income tax assessment order for the assessment year 2014-15.
Analysis:
The petitioner challenged an assessment order dated 19.11.2019 under the Income Tax Act, 1961 for the assessment year 2014-15. The main contention raised was the violation of principles of natural justice due to the show cause notice dated 06.11.2019 not being served by e-mail, leading to the petitioner not appearing for the scheduled hearing on 11.11.2019. The Assessing Officer proceeded to pass the impugned order without the petitioner's participation, based on this non-appearance.
The court acknowledged that the show cause notice was only uploaded and not served by e-mail, which deprived the petitioner of an effective opportunity to present its case before the Assessing Officer. The court emphasized that the show cause notice stage is crucial as it crystallizes and communicates the issue to be decided in the assessment to the assessee. Therefore, proper service of such notice and granting sufficient time for response are essential before finalizing the assessment.
Considering the above, the court set aside the impugned assessment order dated 19.11.2019. The petitioner was directed to appear before the Assessing Officer on a specified date without expecting further notice, equipped with a reply to the show cause notice. The court mandated the completion of assessment within six weeks after considering the petitioner's reply and any additional materials provided.
In conclusion, the writ petition was disposed of with the above directions, and the connected miscellaneous petition was closed without imposing any costs.
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