Court upholds Income Tax assessment for AY 2017-18, dismissing challenge based on natural justice principles.

The Court dismissed the challenge to the assessment order under Section 144 of the Income Tax Act, 1961 for AY 2017-18. The petitioner's claims of violation of natural justice principles and lack of opportunity were rejected. The Court found that the show cause notice was issued, served, and provided the petitioner with an opportunity to respond. Despite a technical error regarding the notice in the E-portal snapshot, the manual issuance and proof of service were deemed sufficient. Consequently, the Court upheld the assessment order, leading to the dismissal of the writ petition without costs.

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Issues:
Challenge to assessment order under Section 144 of the Income Tax Act, 1961 for AY 2017-18 based on violation of natural justice principles and lack of opportunity for the petitioner.

Detailed Analysis:

1. Violation of Principles of Natural Justice and Denial of Opportunity:
The writ petition challenges an assessment order dated 08.12.2019 under Section 144 of the Income Tax Act, 1961 for AY 2017-18, alleging a breach of natural justice principles and denial of opportunity to the petitioner before assessment. The petitioner failed to file a return of income within the stipulated time, despite receiving a notice under Section 142(1) of the Act dated 30.11.2017, which required the return to be filed by 30.12.2017. The return was belatedly filed on 13.08.2019.

2. Service of Notices and Show Cause Notice:
Subsequently, a summons under Section 131 was issued, and the petitioner appeared before the officer on 16.09.2019. A show cause notice was issued on 20.05.2019, sent via Registered post with acknowledgment due, received and acknowledged on 25.05.2019 by an individual named Lalitha. The records of assessments were examined to confirm the service of the notice.

3. Existence of Show Cause Notice:
The petitioner contended that no show cause notice was issued before the completion of assessment, but this claim was found to be factually incorrect. A copy of the show cause notice dated 20.05.2019 was presented, which outlined the reasons for the assessment and provided an opportunity for the petitioner to respond within seven days. The notice was manually issued and its service was proven.

4. Technical Error and Assessment Validity:
The petitioner raised an objection regarding the absence of the show cause notice in the E-portal snapshot, deeming it a technical error. However, this discrepancy was considered insignificant as the manual issuance and proof of service of the notice were available in the records. The Court concluded that this technicality did not invalidate the assessment.

5. Dismissal of Challenge and Conclusion:
Ultimately, the Court found no grounds to interfere with the assessment order under Article 226 of the Constitution of India. Consequently, the challenge to the assessment failed, leading to the dismissal of the writ petition. The connected miscellaneous petition was also closed, and no costs were awarded in this matter.

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