Natural justice in assessment proceedings requires consideration of a timely adjournment request before finalising an order.
An assessment order cannot be sustained where the authority ignores a timely adjournment request and proceeds on an incorrect assumption that the assessee failed to respond. The Madras HC found that the record showed an adjournment request was uploaded on 03.04.2021, and the revenue did not dispute its genuineness. Because the assessment order wrongly stated that no reply had been made to the notice dated 30.03.2021, the assessee was denied a fair opportunity of hearing. The order was therefore vitiated for breach of natural justice and was set aside, with the matter remitted for fresh adjudication after granting reasonable opportunity.
Issues: Whether the assessment order was vitiated for non-consideration of the assessee's adjournment request and consequent denial of a reasonable opportunity of hearing, thereby violating principles of natural justice.
Analysis: The assessment proceedings showed repeated notices and responses, but the record also contained a screenshot from the departmental portal evidencing that an adjournment request was submitted on 03.04.2021. The revenue did not dispute the genuineness of that record. The assessment order proceeded on the premise that no response had been made to the notice dated 30.03.2021, which was found to be factually incorrect. On that basis, the failure to consider the adjournment request amounted to denial of a fair opportunity before completing the assessment.
Conclusion: The assessment order was vitiated for breach of natural justice and was liable to be set aside.
Final Conclusion: The matter was remitted for fresh adjudication by the assessing authority after granting a reasonable opportunity of hearing in accordance with law.
Ratio Decidendi: An assessment order passed without considering a timely adjournment request and on an erroneous factual assumption of non-response violates the principles of natural justice and cannot be sustained.
TaxTMI 
AI Drafter ✕
TaxTMI 
