Court overturns assessment orders citing procedural violations under Income Tax Act, 1961. Emphasizes legal timelines and natural justice.

The court set aside all impugned orders of assessment due to violations of natural justice and non-compliance with legal principles under the Income Tax Act, 1961. The petitioner was directed to be heard afresh, and new orders were to be passed within the prescribed limitation period. The court emphasized the importance of adhering to legal timelines and ensuring strict compliance with natural justice. The petitioner was instructed to appear before the authority on a specified date for the recommencement of assessment proceedings. No costs were imposed, and the writ petitions were disposed of, with connected miscellaneous petitions closed.

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Issues:

1. Challenge to orders of assessment under the Income Tax Act, 1961
2. Violation of principles of natural justice in issuance of notices and time for reply
3. Compliance with limitation for passing assessment orders under Section 153A and regular assessment

Analysis:

1. The writ petitions challenged orders of assessment passed under Section 153A and Section 143(3) of the Income Tax Act, 1961, following a search and seizure action conducted in the petitioner's premises. The primary contention raised was regarding the violation of principles of natural justice in the issuance of notices and the time granted for replies to show cause notices.

2. The court noted that notices under Section 153A were issued in December 2021, with responses filed by the petitioner in March 2022. However, show cause notices were issued in September 2022, granting only an average of one week for reply, which was deemed inadequate. The matter was listed for further consideration to address the violations of natural justice.

3. Upon further examination, it was revealed that the impugned assessment orders in several writ petitions had been passed within an average of ten days from the date of issuance of show cause notices for assessment years ranging from 2015-16 to 2020-21. The court emphasized the importance of complying with the limitation period under Section 153A, which was set to expire on 31.03.2023, based on the last date of authorizations.

4. In light of the identified violations of natural justice and the need for adherence to legal principles, the court set aside all impugned orders of assessment. The petitioner was directed to be heard afresh, and new orders were to be passed within the prescribed limitation period, ensuring strict adherence to natural justice and legal requirements.

5. To facilitate the recommencement of assessment proceedings, the petitioner was instructed to appear before the authority on a specified date without further notice. Both parties were reminded to conduct themselves appropriately during the assessment process to ensure timely completion within the legal framework. The writ petitions were disposed of accordingly, with no costs imposed, and connected miscellaneous petitions were closed.

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