Court overturns assessment order and notice of demand citing breach of natural justice, emphasizes right to be heard. The court set aside the assessment order and notice of demand due to a violation of natural justice principles. The petitioner was granted three weeks to ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Court overturns assessment order and notice of demand citing breach of natural justice, emphasizes right to be heard.
The court set aside the assessment order and notice of demand due to a violation of natural justice principles. The petitioner was granted three weeks to respond to the show cause notice, with the Respondents directed to take appropriate action within ten weeks. The court emphasized the importance of upholding the right to be heard and adherence to natural justice principles in tax assessment matters under the Income Tax Act, 1961.
Issues: Challenge to assessment order under Income Tax Act based on violation of principles of natural justice.
Analysis: The petition challenged the assessment order dated 30th March, 2022, passed under Section 147 r/w Section 144B of the Income Tax Act, 1961, and the consequent Notice of Demand on the grounds of gross violation of principles of natural justice. The petitioner claimed that the show cause notice issued on 27th March, 2022, required a reply by 29th March, 2022, but when attempting to upload the reply, the 'submit button' on the e-Filing Portal was disabled. Evidence was presented, including a screenshot and a registered grievance on the portal, along with informing the Respondents via email. The court found merit in the petitioner's contentions and concluded that the impugned order and notice of demand were not sustainable due to the violation of principles of natural justice.
The court set aside the impugned order and notice of demand, granting the petitioner three weeks to file a reply to the show cause notice dated 27th March, 2022, with the National Faceless Assessment Centre, Delhi. The Respondents were given the liberty to pass appropriate orders within ten weeks thereafter in accordance with the law. The writ petition was disposed of accordingly, ensuring that the petitioner's right to be heard and respond to the show cause notice was upheld, emphasizing the importance of adherence to principles of natural justice in administrative actions, especially in matters of tax assessments under the Income Tax Act, 1961.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
