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Court sets aside assessment order under Income Tax Act 1961, citing violation of natural justice principles. The court set aside the assessment order under Section 153 C of the Income Tax Act, 1961 for the assessment year 2019-20 due to a violation of natural ...
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Court sets aside assessment order under Income Tax Act 1961, citing violation of natural justice principles.
The court set aside the assessment order under Section 153 C of the Income Tax Act, 1961 for the assessment year 2019-20 due to a violation of natural justice principles. The petitioner, not afforded a fair hearing, had the assessment order quashed. The court directed a fresh assessment, emphasizing the importance of providing the petitioner with a proper opportunity to be heard. The writ petition was allowed, and no costs were imposed.
Issues: Quashing of assessment order under Section 153 C of the Income Tax Act, 1961 for the assessment year 2019-20 due to violation of principles of natural justice.
Analysis: The petitioner filed a petition under Article 226 seeking to quash the assessment order passed by the Assistant Commissioner of Income Tax for the assessment year 2019-20. The petitioner, an assessee under the Act, had initially filed a return of income for the said year. Subsequently, incriminating materials related to land purchase were found during a search operation in another individual's case. The assessing officer proceeded ex parte as the petitioner did not respond to notices, leading to an assessment determining a significantly higher income. The petitioner claimed not receiving notices as they were sent to an outdated email address, while the respondent contended that notices were sent to the correct email address available on the ITBA portal. The court noted the violation of natural justice principles due to the petitioner not being heard before the assessment order was passed.
The court examined the assessment order and found discrepancies in the notices sent to the petitioner. Despite the respondent's claims of sending notices, there was no mention of the service of notices, and it was evident that the outdated email address was used. The petitioner had updated their email address with the Income Tax Department, which was not considered during the communication process. Consequently, the court concluded that the petitioner was not given a fair hearing before the assessment order was issued, leading to a violation of natural justice.
In light of the principles of natural justice being breached, the court decided to set aside the impugned assessment order and directed the respondent to conduct a fresh assessment for the assessment year 2019-20, ensuring the petitioner is given a proper opportunity to be heard. The writ petition was allowed accordingly, and any pending interlocutory applications were closed without any costs being imposed.
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