Assessment Order Overturned for Breach of Natural Justice; Case Remanded for Reconsideration with New Submission Timeline.

The HC set aside the impugned assessment order due to a breach of natural justice, as it failed to consider the petitioner's submissions and provided inadequate response time. The matter was remanded for reconsideration, allowing the petitioner 15 days to submit additional documents. The respondent must offer a reasonable opportunity, including a personal hearing, and issue a new assessment order within three months. The Writ Petition was disposed of without costs, and connected miscellaneous petitions were closed.

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Issues:
Challenge to assessment order on grounds of breach of principles of natural justice.

Analysis:
The petitioner challenged an assessment order dated 24.03.2024, alleging a breach of natural justice principles. The assessment was reopened under Section 148A(d) and notices were issued under various sections of the Income Tax Act. The petitioner responded to the notices, disputing the amount received in the bank and providing documents to support their claim. However, the impugned order did not discuss these submissions, leading to the challenge on the basis of lack of consideration of petitioner's contentions.

Analysis Continued:
The petitioner contended that the amount received in the bank was lower than what was stated in the order, supported by a certificate from the bank. The respondent argued that the petitioner failed to respond to several notices and did not satisfactorily explain the cash deposits, leading to the confirmation of variations. The respondent claimed that the impugned order was reasoned and offered a personal hearing through video conferencing.

Analysis Continued:
The court observed that the show cause notice provided only one day for the petitioner to reply, which was deemed unreasonable. The petitioner consistently maintained that the deposits were not income but contributions from members for chit savings. Despite this, the impugned order did not address these contentions or consider the documents submitted by the petitioner, rendering it unsustainable.

Analysis Continued:
Consequently, the court set aside the impugned order and remanded the matter for reconsideration. The petitioner was granted 15 days to submit additional documents, with the respondents directed to facilitate the process. The first respondent was instructed to provide a reasonable opportunity, including a personal hearing, and issue a fresh assessment order within three months from receiving the additional documents.

Analysis Continued:
The Writ Petition was disposed of with no order as to costs, and the connected miscellaneous petitions were closed accordingly.

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