Court quashes assessment order, remits for new decision, allows participation via Video Conferencing

The court allowed the Writ Petition, quashed the assessment order, and remitted the case back to the first respondent to issue a speaking order within 60 days. The quashed order was to be treated as a show cause notice and draft assessment order. The respondents were given 15 days for any corrigendum, and the petitioner had 30 days to respond. The first respondent was directed to issue the final order within 60 days and facilitate the petitioner's participation via Video Conferencing. The Writ Petition was allowed, and connected miscellaneous petitions were closed without costs.

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Issues: Challenge to assessment order for lack of show cause notice and draft assessment order under Section 144B of Income Tax Act, 1961.

Analysis:
The petitioner challenged the assessment order dated 31.05.2021, contending that it was issued without the required show cause notice and draft assessment order under Section 144B of the Income Tax Act, 1961. The petitioner, a senior citizen residing in Dubai, faced personal difficulties due to bereavement and contracting COVID, which affected her ability to respond to the notices issued under Section 142(1) on 10.03.2021, 05.04.2021, and 30.04.2021.

The respondents argued that the petitioner had an alternative remedy under Section 246(A) of the Income Tax Act, 1961, and that additional notices were issued to the authorized representative of the petitioner. They contended that previous notices remained unanswered, undermining the merit of the Writ Petition. After hearing both parties and examining the documents, the court noted the petitioner's advanced age of 80 years, personal challenges, and the absence of a show cause notice and draft assessment order.

The court found that the impugned order lacked the necessary procedural steps and could not be upheld. Consequently, the court allowed the Writ Petition, quashed the impugned order, and remitted the case back to the first respondent to issue a speaking order within 60 days. The quashed order was to be treated as a show cause notice and draft assessment order. The respondents were granted 15 days to issue any corrigendum and the petitioner 30 days to respond. The first respondent was directed to issue the final order within 60 days and facilitate the petitioner's participation through Video Conferencing.

In conclusion, the Writ Petition was allowed, and connected miscellaneous petitions were closed without costs.

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