Court overturns assessment order for 2018-19 due to procedural unfairness, remands for fresh assessment.

The Court set aside the assessment order dated 18th June, 2021, for the assessment year 2018-19, due to violation of principles of natural justice. The matter was remanded back to the Respondent for a fresh assessment order, allowing the Petitioner to respond to the Show Cause Notice. The Petitioner was directed to file a reply within ten days, and the Respondent was instructed to facilitate the filing on the portal. The Court disposed of the writ petition with these directions, ordering the upload of the order on the website and providing a copy to the counsel via e-mail.

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Issues:
Challenge to Assessment Order under Income Tax Act, 1961 for assessment year 2018-19.

Analysis:
The petition challenged the Assessment Order dated 18th June, 2021, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the assessment year 2018-19. The Petitioner argued that the Respondent made an addition of Rs. 1,06,95,929 against the returned income of Rs. 27,59,656, resulting in a total assessed income of Rs. 1,34,55,590. The Petitioner contended that the Respondent failed to provide reasons for the addition and did not consider the Petitioner's inability to file a reply to the Show Cause Notice due to technical issues with the portal. Additionally, it was highlighted that no Show Cause Notice was served upon the Petitioner as the legal heir of the deceased assessee despite informing the Respondent about the death of the assessee.

The Court observed that the final assessment order was passed in violation of principles of natural justice as the Petitioner did not have a reasonable opportunity to respond to the Show Cause Notice and draft assessment order due to technical issues with the portal. The Court set aside the assessment order dated 18th June, 2021, and remanded the matter back to the Respondent for passing a fresh assessment order in accordance with the law after considering the Petitioner's reply. The Petitioner was directed to file its reply within ten days, and the Respondent was instructed to facilitate the filing of the reply on the portal on behalf of the legal heir of the deceased assessee.

In conclusion, the present writ petition and application were disposed of with the mentioned directions. The Court ordered the upload of the order on the website and forwarded a copy to the learned counsel through e-mail.

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