Assessment Order Overturned Due to Insufficient Response Time; Reconsideration Ordered with Video-Conference Option.

The HC set aside the impugned assessment order for the year 2018-2019 due to insufficient response time to a show cause notice concerning bank statement credits. The matter was remanded for reconsideration, directing the petitioner to reply within two weeks. The 1st respondent must provide a reasonable opportunity, including a video-conference hearing, and issue a new assessment order within four months. Portal access for uploading the reply must be granted. The writ petition was disposed of without costs, and related miscellaneous petitions were closed.

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Issues:
Challenge to assessment order for assessment year 2018-2019 due to insufficient time provided to respond to show cause notice regarding credits in bank statement.

Analysis:
The assessment order dated 23.03.2023 for assessment year 2018-2019 is being challenged in this writ petition due to the initiation of reassessment proceedings against the petitioner. The petitioner requested additional time to respond to the proposal regarding credits in the bank statement, but the impugned assessment order was issued before granting sufficient time. The petitioner's counsel argued that the proposed variation in credits was introduced for the first time in the show cause notice dated 13.03.2024, and the time provided to respond was inadequate. The communication adjourning the case was digitally signed late at night, raising concerns about effective response time.

The respondent's counsel contended that the petitioner had received prior notices under Sections 143(2) and 142(1), so the limited time provided for the show cause notice did not prejudice the petitioner. However, upon reviewing the show cause notice dated 13.03.2024, which dealt with a substantial amount in the bank statement, it was found that the issue was not raised in earlier notices. The court concluded that the petitioner was not given sufficient time to respond meaningfully, leading to interference with the assessment order.

Therefore, the High Court set aside the impugned assessment order and remanded the matter for reconsideration. The petitioner was directed to reply to the show cause notice within two weeks, enclosing all relevant documents. The 1st respondent was instructed to provide a reasonable opportunity, including a personal hearing via video-conference, and issue a fresh assessment order within four months from receiving the petitioner's reply. The respondents were also directed to grant necessary portal access for uploading the reply. The writ petition was disposed of without costs, and connected miscellaneous petitions were closed.

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