Court nullifies assessment order for AY 2013-14 citing lack of fair opportunity.

The court set aside the assessment order for AY 2013-14 due to a violation of natural justice principles. The petitioner's request for an extension to respond to the show cause notice was denied, leading to the portal's closure before the extended deadline. The court emphasized the importance of providing the petitioner with a fair opportunity to respond and granted liberty to the AO to conduct a fresh assessment after the petitioner submits a response within three weeks. Procedural fairness and the opportunity for effective presentation of the case were highlighted in this judgment.

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Issues involved:
The writ petition concerns Assessment Year (AY) 2013-14, challenging the assessment order passed u/s 147 read with 144B of the Income Tax Act, 1961, specifically on the grounds of the infraction of principles of natural justice.

Issue 1: Infraction of Principles of Natural Justice
The petitioner sought to assail the assessment order dated 18.05.2023, contending a violation of natural justice principles. The show cause notice (SCN) dated 08.05.2023 was served on the petitioner proposing a variation of taxable income, with a response deadline of 10.05.2023. Despite the petitioner's request for adjournment till 18.05.2023 to gather material for a response, the portal for uploading responses was closed on the said date. The court, without delving into the merits of the case, decided to set aside the assessment order, emphasizing the importance of providing an opportunity to the petitioner. Consequently, liberty was granted to the Assessing Officer (AO) to conduct a fresh assessment after the petitioner submits a response within three weeks. The AO is directed to ensure the portal is open for the petitioner to upload the reply and to schedule a personal hearing, followed by a speaking order.

This judgment primarily addresses the issue of natural justice in the assessment proceedings for AY 2013-14 under the Income Tax Act, 1961, emphasizing the need for procedural fairness and opportunity for the petitioner to present their case effectively.

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