Tax Assessment Voided for Ignoring Natural Justice and Premature Order, Officer Fined Rs. 10,000 for Misconduct.

The court quashed the assessment order and consequential notices due to a breach of natural justice, as the order was issued before the reply deadline and without considering the petitioner's submitted reply. The court identified discrepancies in the respondent's affidavit and criticized the premature issuance of the assessment order. Consequently, the court imposed a fine of Rs. 10,000 on the concerned officer, directing payment to the PM Cares Fund within two weeks, underscoring the necessity of adhering to procedural fairness in assessment proceedings.

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Issues:
1. Impugning assessment order on grounds of breach of natural justice.
2. Allegation of assessment order being passed before reply deadline and without considering the reply.
3. Discrepancies between the time of reply submission and assessment order issuance.
4. Allegations of incorrect statements in the affidavit and call for perjury proceedings.
5. Quashing of the assessment order and consequential notices.
6. Imposition of costs on the concerned officer and direction for payment to PM Cares Fund.

Detailed Analysis:

1. The petitioner challenged an assessment order dated 12th April, 2021, alleging a breach of natural justice. The petitioner contended that the assessment order was passed before the deadline for filing a reply had expired and without considering the reply already submitted. The respondent, in an affidavit, claimed that no reply was received before the completion of assessment proceedings. Discrepancies arose regarding the timing of the reply submission and the issuance of the assessment order.

2. The notice received by the petitioner on 8th April, 2021, required a response by 12th April, 2021, by 23:59 hours. The petitioner submitted the reply on the same day at 8:20 a.m. However, the assessment order was digitally signed at 2:53 PM on 12th April, 2021, before the reply deadline. The court noted the discrepancy in the timing and lack of consideration for the submitted reply in the assessment order.

3. The court observed discrepancies in the respondent's affidavit, noting that the assessment order was passed hastily without waiting for the reply deadline to expire. The court decided to quash the assessment order and the consequential notices of demand and penalty. Additionally, the court directed the concerned officer to pay a fine of Rs. 10,000 to the PM Cares Fund within two weeks, citing the wrongful action on the part of the respondent.

4. The court criticized the respondent for passing the assessment order prematurely and without verifying the records of the reply submitted by the petitioner. The court deemed the situation fit for imposing a cost on the concerned officer and directed the payment to the PM Cares Fund. The judgment concluded by disposing of the petition.

This judgment highlights the importance of adhering to principles of natural justice in assessment proceedings and the repercussions of hasty decision-making by assessing officers.

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