Assessment Order Overturned: Extension Denial Violates Natural Justice and Article 14 Rights, Reassessment Ordered.

The HC set aside the impugned assessment order due to the denial of an extension of time for the petitioner to respond to a show cause notice, which violated principles of natural justice and constitutional rights under Article 14. The court found that the assessing officer acted hastily without addressing the petitioner's request. The authorities were directed to reopen the submission window for objections and finalize the assessment proceedings with a new order in accordance with the law. The writ petition was allowed, ensuring the petitioner's rights were upheld.

---

---

Issues involved:
The issues involved in the judgment are the denial of extension of time for filing reply to a show cause notice by the Income Tax Authorities, violation of constitutional rights guaranteed under Article 14 of the Constitution of India, and the failure to adhere to principles of natural justice in finalizing assessment proceedings.

Details of Judgment:

Issue 1: Denial of Extension of Time
The petitioner, an assessee under the Income Tax Act, 1961, sought an extension of time to submit a reply to a show cause notice issued by the third respondent. Despite the petitioner's request for an extension until 22.05.2023, no decision was communicated, and the window for submission was closed, leading to the issuance of the assessment order. The court held that the assessing officer proceeded in a hurried manner, violating principles of natural justice. The impugned order was set aside, directing the respondents to open the window for uploading objections without granting further time.

Issue 2: Violation of Constitutional Rights
The petitioner contended that the denial of extension and the issuance of the assessment order without addressing the request for more time violated the constitutional rights guaranteed under Article 14 of the Constitution of India. The court acknowledged the petitioner's readiness to submit the reply if given the opportunity. The learned counsel for the Revenue acknowledged the failure to address the petitioner's request for an extension of time.

Issue 3: Failure to Adhere to Principles of Natural Justice
The court emphasized that the liability of tax is a civil liability, requiring adherence to principles of natural justice in assessment proceedings. It noted that the petitioner was issued a show cause notice but had not submitted a reply. The failure to address the request for an extension of time and the subsequent passing of the assessment order without the petitioner's response was deemed a violation of natural justice. The court directed the finalization of assessment proceedings with a fresh order passed in accordance with the law.

In conclusion, the court allowed the writ petition, setting aside the impugned order, and directed the authorities to comply with the order communicated for further proceedings.

---