Assessment Order Overturned for Violating Natural Justice; Case Remanded for Personal Hearing Under Income Tax Act.

The HC set aside the Assessment Order and notice dated 30.04.2024, citing a violation of natural justice due to insufficient response time and lack of personal hearing. The matter was remanded for a personal hearing, ensuring adherence to the Income Tax Act's procedural requirements, with all contentions remaining open.

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Issues involved:
Challenge to validity of Assessment Order, computation sheet, demand notice, and refund; challenge to notice dated 30.04.2024; violation of principles of natural justice; inadequate time for reply; lack of personal hearing; hurried manner of passing order; violation of Standard Operating Procedure regarding response time; contention of prejudice due to lack of time for reply and personal hearing; request for opportunity of personal hearing; setting aside Assessment Order and notice; providing opportunity of personal hearing; consideration of replies; avoiding passing orders at the last moment; keeping all contentions open.

Analysis:
The petitioner challenged the validity of the Assessment Order, computation sheet, demand notice, and sought a refund. Additionally, the petitioner contested a notice dated 30.04.2024. The petitioner argued that the time provided for reply to the show cause notice was inadequate, leading to a hurried response and lack of personal hearing, causing prejudice. The respondent, representing Revenue, argued that a written response sufficed, denying any violation of natural justice principles.

Upon examination, it was found that the show cause notice had a response time shorter than the Standard Operating Procedure's requirement of seven days. Although the petitioner submitted responses within the given time, the hurried nature of the replies to meet deadlines could lead to prejudice due to insufficient time for clarification and lack of personal hearing. The petitioner requested a personal hearing to explain the replies further and provide additional clarifications if needed.

Acknowledging the need for a thorough consideration of the replies, the court set aside the Assessment Order and the notice dated 30.04.2024. The matter was remanded for a personal hearing to allow the petitioner to elaborate on the responses provided. Emphasis was placed on avoiding hasty decisions at the last minute to prevent prejudice to the assessee. The authority was instructed to adhere to the time constraints under the Income Tax Act to ensure fair proceedings. The petitioner was advised to await further communication from the authority and was granted the liberty to share the court's order.

In conclusion, the writ petition was disposed of accordingly, with all contentions left open for further consideration.

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