High Court quashes Assessment Order, emphasizes natural justice principles for fair assessments.

The High Court quashed the ex parte Assessment Order, directing the Petitioner to appear before the Assessment Authority on a specified date. The Petitioner was instructed to cooperate in passing a fresh Order without unnecessary adjournments. Respondent No.2 was directed to issue a fresh Order within 8 weeks, adhering to principles of natural justice. All contentions on merits were left open, and the Writ Petition was allowed without costs, emphasizing the significance of granting reasonable time for parties during assessments to uphold natural justice principles.

---

---

Issues involved:
Challenge to ex parte Assessment Order due to lack of personal hearing and violation of principles of natural justice.

Detailed Analysis:
The Petitioner challenged an ex parte Assessment Order dated 11 June 2021 passed by Respondent No.2 under Article 226 of the Constitution of India. The Respondents did not grant a personal hearing to the Petitioner before finalizing the assessment for the period from 01.04.2011 to 31.03.2012, disallowing all deductions claimed by the Petitioner. The Petitioner submitted various documents for reconciliation, but the Respondents passed the ex parte Order without granting an adjournment despite the Petitioner's request due to the Covid-19 situation. The Petitioner contended that the notices were issued with short notice, violating the principle of natural justice.

The High Court analyzed the documents and notices issued by the Respondents. The Court noted that the first notice was issued after a long gap but with short notice, while the second notice required the Petitioner to remain present within 48 hours. The Court held that the Respondents should have given reasonable time for the Petitioner to appear during the assessment. The Court found the actions of the Respondents in passing the ex parte Order without granting reasonable time to be a gross violation of the principle of natural justice.

As a result, the High Court quashed and set aside the Impugned Order dated 11 June 2021, directing the Petitioner to appear before the Assessment Authority on a specified date. The Petitioner was instructed to cooperate in passing a fresh Order in accordance with the law without seeking unnecessary adjournments. The Respondents were not required to issue a fresh notice for the next hearing. The Respondent No.2 was directed to pass a fresh Order within 8 weeks from the date of the Petitioner appearing, following the principles of natural justice. All contentions of the parties on merits were kept open, and the Writ Petition was allowed with no order as to costs.

In conclusion, the High Court found in favor of the Petitioner, highlighting the importance of granting reasonable time for a party to be present during assessments to ensure the application of principles of natural justice.

---