Court exempts petitioner from fees & affidavits, accepts jurisdiction under Income Tax Act, quashes assessment order.

The court allowed the petitioner's application for exemption from court-fee and affidavit filing, subject to compliance within a specified time frame. It accepted jurisdiction in the matter of an assessment order under the Income Tax Act to expedite proceedings. The court quashed the assessment order, demand notice, and penalty proceedings due to a breach of natural justice, granting an opportunity for a fresh assessment order with a virtual hearing and specific procedural guidelines. The writ petition was allowed, ensuring a fair assessment process in compliance with legal principles.

---

---

Issues Involved:
1. Granting exemption from court-fee and affidavit filing
2. Exercise of jurisdiction by the court
3. Challenge against assessment order, demand notice, and penalty proceedings
4. Breach of principles of natural justice in passing the assessment order
5. Opportunity for personal hearing and fresh assessment order

Issue 1: Granting exemption from court-fee and affidavit filing
In the case, the court allowed the petitioner's application for exemption from filing requisite court-fee and sworn/notarised/affirmed affidavit(s) along with the writ petition, subject to the petitioner depositing the necessary court-fee and filing the required affidavits within three days of the court's normal work pattern resuming.

Issue 2: Exercise of jurisdiction by the court
The court accepted jurisdiction in the matter concerning an assessment order under the Income Tax Act, emphasizing the need to save time and expenses for both the revenue and the assessee. The court acknowledged the jurisdiction in the case, highlighting the importance of concluding the matter to provide certainty for the parties involved.

Issue 3: Challenge against assessment order, demand notice, and penalty proceedings
The writ petition challenged an assessment order, a demand notice, and a notice for penalty proceedings issued under the Income Tax Act for the assessment year 2018-2019. The petitioner raised objections regarding the assessment order dated 30.04.2021, demand notice, and initiation of penalty proceedings issued on the same date.

Issue 4: Breach of principles of natural justice in passing the assessment order
The petitioner contended that the assessment order was passed in breach of natural justice principles as the petitioner's request for a personal hearing was not granted, despite the CBDT extending the deadline for passing the assessment order. The court found merit in the petitioner's argument and concluded that the order was passed unreasonably without accommodating the petitioner's request.

Issue 5: Opportunity for personal hearing and fresh assessment order
Due to the breach of natural justice, the court quashed the assessment order, demand notice, and penalty proceedings. The court granted liberty to the respondent to pass a fresh assessment order after providing an opportunity for a personal hearing to the petitioner's authorized representative. The court directed the respondent to follow specific provisions of the Income Tax Act during the hearing and to conduct the proceedings virtually due to the ongoing pandemic. Additionally, the petitioner was instructed to file objections within seven days of receiving the court's order to expedite the process.

In conclusion, the court allowed the writ petition, quashed the impugned orders, and provided directions for a fair and just assessment process, ensuring compliance with natural justice principles and procedural requirements under the Income Tax Act.

---