Court quashes assessment order, remits matter for fresh assessment, emphasizes fair hearing

The Court allowed the writ application, quashed the impugned assessment order, and remitted the matter to the Assessing Officer. The Assessing Officer was directed to issue a show cause notice along with the draft assessment order to allow the writ applicant to respond appropriately. The Court emphasized the need for due opportunity of hearing to be provided to the writ applicant during the fresh assessment proceedings to ensure procedural fairness and adherence to the principles of natural justice.

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Issues:

1. Validity of the impugned assessment order passed under Section 143(3) read with Section 144B of the Act.
2. Alleged violation of principles of natural justice by not considering the reply filed by the writ applicant and not affording an opportunity of video conferencing.
3. Absence of a show cause notice along with the draft assessment order before passing the final order of assessment.
4. Jurisdictional aspect of the final order of assessment.

Analysis:

1. The writ applicant challenged the impugned assessment order dated 30.07.2021 for A.Y. 2018-19, alleging that it was passed without considering their reply and without providing an opportunity for video conferencing. The counsel for the writ applicant argued that the order violated the principles of natural justice. On the other hand, the counsel for the Revenue acknowledged the unassailable facts in the writ application.

2. The Court observed that issuing a show cause notice along with the draft assessment order is a prerequisite before passing an order under Section 144B of the Act. In this case, no show cause notice was issued along with the draft assessment order, rendering the final assessment order without jurisdiction. Consequently, the Court decided to remit the matter to the Assessing Officer for fresh proceedings.

3. In the final judgment, the Court allowed the writ application, quashed the impugned assessment order, and remitted the matter to the Assessing Officer. The Assessing Officer was directed to issue a show cause notice along with the draft assessment order to allow the writ applicant to respond appropriately. The Court emphasized the need for due opportunity of hearing to be provided to the writ applicant during the fresh assessment proceedings.

4. The Court's decision aimed at ensuring procedural fairness and adherence to the principles of natural justice in the assessment process. By setting aside the initial assessment order and directing a de novo assessment with the requisite show cause notice, the Court sought to uphold the integrity and legality of the assessment proceedings for the benefit of all parties involved.

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