Assessment order set aside for violating natural justice during Covid-19. Fresh hearing granted.

The Court set aside the assessment order due to the violation of principles of natural justice amidst the Covid-19 pandemic. Acknowledging the unique circumstances, including lockdowns and work-from-home arrangements in Maharashtra, the Court deemed the service of notice on the security guard ineffective. The petitioner was granted another opportunity to be heard and produce necessary documents for a fresh assessment. Expedited proceedings were ordered to ensure timely resolution of the matter, with the writ petition being allowed.

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Issues:
Challenge to assessment order on grounds of violation of principles of natural justice due to Covid-19 pandemic circumstances.

Analysis:
The petitioner challenged the assessment order dated 25.11.2020 on the grounds of violation of principles of natural justice under Article 226 of the Constitution of India. The petitioner contended that although a notice was issued by the Assessing Officer following a remand order dated 01.01.2019, it was received by the security guard of the petitioner during a time when the office area was a containment zone due to the Covid-19 pandemic. The petitioner argued that despite the technical service of notice, there was no effective opportunity for the petitioner to be heard due to the unique situation arising from the pandemic.

The Tribunal had allowed the petitioner's appeal and remitted the case to the assessing authority, directing the petitioner to produce documents within a specified time limit. The petitioner claimed to have complied with this directive by submitting the documents to the Assessing Officer as per the appellate order. However, the petitioner raised concerns about the notice being served during a period of complete lockdown in the State of Maharashtra, where the petitioner's office was located, making it practically impossible for the petitioner to be aware of the service of notice.

The Court acknowledged the extraordinary circumstances prevailing in Mumbai, Maharashtra, during the Covid-19 pandemic, with complete lockdowns and work-from-home arrangements in place. Despite the technical service of notice on the security guard, the Court held that it did not constitute an effective service of notice considering the restrictions and limitations imposed by the lockdown situation. The Court emphasized the need for an exceptional approach in such unprecedented circumstances, where the petitioner was disadvantaged due to factors beyond their control.

In light of the peculiar situation and the failure to grant a reasonable opportunity of being heard to the petitioner, the Court set aside the assessment order and granted the petitioner another opportunity to be heard and produce necessary documents for the assessment to be completed afresh. The Court fixed a specific date for the petitioner to appear before the assessing authority and instructed expedited proceedings to ensure timely resolution of the assessment matter. The writ petition was allowed accordingly.

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