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Breach of natural justice in AY 2017-18 assessment: Court sets aside order, mandates new process with fair hearing. The court found a breach of natural justice principles in the assessment process for AY 2017-18 due to insufficient response time and lack of information ...
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Breach of natural justice in AY 2017-18 assessment: Court sets aside order, mandates new process with fair hearing.
The court found a breach of natural justice principles in the assessment process for AY 2017-18 due to insufficient response time and lack of information provided by the AO. The assessment order was set aside, and the AO was instructed to issue a new order after supplying the petitioner with relevant materials. The court mandated a two-week response period for the petitioner, a personal hearing, and the issuance of a speaking order. The writ petition was disposed of with these directions.
Issues Involved: The judgment concerns a writ petition related to Assessment Year (AY) 2017-18. The main issue revolves around the breach of principles of natural justice in the assessment process.
Details of the Judgment:
Issue 1: Allegation of Unverified Transaction The petitioner was alleged to have transferred a significant amount to another individual's account for entry purposes. The case against the petitioner was based on a statement made by the account holder, admitting to being an entry provider. The petitioner denied the transaction and requested relevant information from the Assessing Officer (AO).
Issue 2: Breach of Principles of Natural Justice The petitioner argued that the AO did not provide sufficient time to respond to the show cause notice, as per the Standard Operating Procedure (SOP) guidelines requiring a minimum of seven days. The AO only allowed a day for response, which the petitioner contended was insufficient and breached natural justice principles.
Judgment Summary: The court acknowledged the breach of natural justice principles due to the inadequate time given for response and the lack of supporting information provided by the AO. The court set aside the assessment order and granted the AO the opportunity to pass a fresh order after providing relevant material to the petitioner. The court directed the AO to grant two weeks for the petitioner to respond, conduct a personal hearing, and issue a speaking order. The writ petition was disposed of accordingly.
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