Assessment Order Quashed for 2018-19: Violation of Natural Justice, Case Remitted for Fresh Evaluation.

The HC quashed the impugned assessment order dated 13.09.2021 for the assessment year 2018-19, citing a violation of natural justice principles. The case was remitted to the first respondent for a fresh assessment within 90 days. The petitioner must file a reply within 30 days, and the respondents were instructed to enable the portal for submission. The Writ Petition was allowed without costs, and associated Miscellaneous Petitions were closed.

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Issues involved: Writ Petition for Certiorarified Mandamus to quash the impugned order for assessment year 2018-19 and direct completion of fresh assessment after granting opportunity of hearing.

Summary:

Issue 1 - Violation of principles of natural justice:
The petitioner filed a Writ Petition seeking to quash the order passed by the first respondent for the assessment year 2018-19 and to direct a fresh assessment after providing a reasonable opportunity of hearing. The petitioner received a show cause notice proposing additions to the taxable income, but was not given sufficient time to respond. Despite requesting an adjournment, the assessment order was passed adding a further sum under Section 68 of the Income Tax Act, 1961, without allowing the petitioner to reply. The court held that the impugned order was passed in violation of principles of natural justice and quashed it under Article 226 of the Constitution of India.

Outcome:
The impugned order dated 13.09.2021 was quashed, and the case was remitted back to the first respondent to pass fresh orders within 90 days. The petitioner was directed to file a reply within 30 days, and the respondents were instructed to enable the portal for receiving the reply. The Writ Petition was allowed with no costs, and connected Miscellaneous Petitions were closed.

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