Court rules Assessment Order invalid due to lack of notice service, orders fresh issuance within specified timelines

The court found in favor of the petitioner, ruling the Assessment Order invalid due to lack of notice service. The respondent was directed to issue a fresh order within 75 days, serving the draft assessment order and show cause notice within 15 days. The petitioner had 30 days to respond, with subsequent orders to be issued within 30 days. The petitioner's right to be heard was ensured through in-person or Video Conference. No costs were awarded, and related petitions were closed.

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Issues involved:
The challenge to the impugned Assessment Order passed under Section 143(3A) and 143(3B) of the Income Tax Act, 1961 for the Assessment Year 2018-2019 based on the lack of issuance of notice.

Issue 1: Lack of issuance of notice

The petitioner challenged the Assessment Order on the grounds of violation of principles of natural justice due to the absence of a notice dated 15.01.2021. The respondent's counter acknowledged the absence of records confirming the delivery of the show cause notice and draft assessment order to the petitioner. The respondent committed to sending the show cause notice by email and completing the assessment proceedings in accordance with the law.

The defence of the respondent was based on the lack of records confirming the service of the draft order and show cause notice to the petitioner. Referring to Section 4 of the Contract Act, 1872, the court highlighted that communication of a proposal is only complete when it comes to the knowledge of the recipient. As there was no proof of service or confirmation of communication of the draft order and show cause notice to the petitioner, the court concluded that there was no valid service to the petitioner.

The court found merit in the petitioner's submission, deeming the impugned order unsustainable. Consequently, the writ petition was allowed, directing the respondent to pass a fresh order on merits within 75 days. The respondent was also instructed to serve a copy of the draft assessment order and show cause notice on the petitioner within 15 days, with the petitioner required to reply within 30 days. Subsequent appropriate orders were to be passed within 30 days, ensuring the petitioner's right to be heard either in person or through Video Conference. No costs were awarded, and connected miscellaneous petitions were closed.

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