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G. S. KULKARNI, SOMASEKHAR SUNDARESAN
Cheftalk Food and Hospitality Services Pvt. Ltd. – Appellant
Versus
Income Tax Officer, Ward (9)(2)(1) Mumbai – Respondent
JUDGMENT :
(G.S. Kulkarni, J.) :
1. This petition under Article 226 of the Constitution of India assails the Assessment Order dated 27 March, 2024 (“Assessment Order”) passed by Respondent No.2 under the provisions of Section 144 read with Section 144B of the Income Tax Act, 1961 (“the Act”).
2. The primary grievance as raised by the Petitioner is that prior to the Assessment Order being passed, the Petitioner was issued a Show Cause Notice dated 22 March, 2024 (“Show Cause Notice”) (Exhibit “G”) calling upon the Petitioner to show cause on the variations which were sought to be made, in the return of income, as filed by the Petitioner. Paragraph 3 of said Show Cause Notice recorded that the Petitioner should submit its response through its registered e-filing account by 17:30 hours of 23 March, 2024. The said paragraph reads thus :
3. Kindly submit your response through your registered e- filing account at www.incometax.gov.in by 17.30 hours of 23/03/2024, whereby you may either :-
b. file your written reply objecting to the proposed variation ; or
c. If required, in addition to filing written reply you may request for personal hearing so as to make
The court established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
Violation of the principle of natural justice in the assessment process warrants setting aside the assessment order and remanding the matter for a decision in accordance with law.
The main legal point established in the judgment is that the assessment order passed under the Income Tax Act, 1961 must grant proper and meaningful opportunity to the assessee to respond to the show....
The impugned assessment order, passed without allowing the petitioner to respond within the given time frame and in light of technical glitches preventing the petitioner from filing objections, was n....
The assessment order was invalid due to non-compliance with procedural requirements under Section 144B of the Income Tax Act, breaching principles of natural justice.
The assessment order was quashed due to violations of natural justice and failure to follow mandatory procedures under Section 144B of the Income Tax Act.
The central legal point established in the judgment is the mandatory requirement of issuing a prior Show Cause Notice and draft assessment order before passing the final assessment order under the Fa....
The court emphasized the necessity of adhering to principles of natural justice, particularly the right to a fair opportunity to respond to show-cause notices in tax assessments.
The court ruled that non-consideration of a petitioner's reply to a show-cause notice violates principles of natural justice, necessitating the quashing of the assessment order.
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