Assessment order set aside for technical glitches, emphasizing natural justice principles.

The Court set aside the Assessment order due to technical glitches hindering compliance, leading to a violation of natural justice principles. The case was remitted back to the respondents for a fresh order within 45 days, emphasizing the importance of fairness in Assessment proceedings and adherence to legal principles. The writ petition was allowed without costs, highlighting the significance of upholding natural justice in such matters.

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Issues:
Challenge to order under Section 144 of the Income Tax Act, 1961 for Assessment year 2011-12 due to technical glitches hindering response submission, violation of principles of natural justice in Assessment proceedings, and remedy sought through writ petition.

Analysis:
The petitioner challenged an order passed under Section 144 of the Income Tax Act, 1961 for the Assessment year 2011-12, citing technical issues hindering compliance. The petitioner received a notice under Section 142(1) on 23.08.2021, but faced difficulties due to the non-functioning website of the department since 01.06.2021. Despite expressing inability to upload required details, the respondent proceeded to issue a show cause notice on 17.09.2021, enclosing a Draft Assessment order with a short response deadline of 20.09.2021. The petitioner's plea for time due to technical issues was disregarded, leading to a violation of principles of natural justice as the Assessment order was passed on 21.09.2021, one day after the response deadline, within a mere two days of the notice issuance. This haste in Assessment proceedings, under the National Faceless Assessment procedure, was deemed a gross violation of natural justice principles.

The respondent argued that the petitioner had multiple opportunities to comply with notices, having received prior reminders, and failed to utilize them. However, the Court found that the hurried Assessment order within a short timeframe, despite technical challenges faced by the petitioner, did not align with the objective of Faceless Assessment to ensure fairness and eliminate irregularities. The Court set aside the impugned order and remitted the case back to the respondents to issue a fresh order within 45 days, directing the petitioner to submit the required information within 15 days. The Court emphasized that Assessment proceedings must adhere to legal principles and be conducted fairly, highlighting the importance of natural justice in such proceedings.

In conclusion, the writ petition was allowed, no costs were imposed, and the connected miscellaneous petitions were closed. The judgment underscored the significance of fair and just Assessment proceedings, emphasizing the need for adherence to legal principles and upholding natural justice in such matters.

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