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IN THE HIGH COURT OF CALCUTTA
Md. Nizamuddin, J.
Bhadrish Jayantilal Sheth - Appellant
Versus
Income Tax Officer - Respondent
WPA 8232 of 2022
Decided On : 17-05-2022
Income Tax Act - Assessment Order - Violation of Principle of Natural Justice
Fact of the Case:
The petitioner challenged an assessment order under the Income Tax Act, 1961, alleging violation of natural justice due to not being provided an opportunity to respond to a show-cause-notice within the given time frame, citing technical glitches in the Department's portal.
Finding of the Court:
The court found that the impugned assessment order, passed before the expiry of the time granted to the petitioner and in light of the technical glitches preventing the petitioner from filing objections, was not sustainable in law. The court set aside the assessment order and remanded the case to the Assessing Officer to pass a fresh assessment order after providing the petitioner with an opportunity to respond to the show-cause-notice and observing the principle of natural justice.
Issues: Violation of natural justice due to lack of opportunity to respond to show-cause-notice within the given time frame and technical glitches in the Department's portal.
Ratio Decidendi: 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 not sustainable in law.
Final Decision: The writ petition was disposed of, setting aside the impugned assessment order and remanding the case to the Assessing Officer to pass a fresh assessment order after providing the petitioner with an opportunity to respond to the show-cause-notice and observing the principle of natural justice.
ORDER
1. Heard learned Advocates appearing for the parties.
2. In this writ petition, petitioner has challenged the impugned assessment order dated 30th March, 2022 under Section 147 read with Section 144B of the Income Tax Act, 1961 relating to assessment year 2013-2014 on the ground of violation of principle of natural justice by not providing the petitioner an opportunity to file reply to the show-cause-notice dated 29th March, 2022 by which petitioner was asked to give his reply/show-cause-notice to the proposed draft assesment through Department's Register e-filing account by 23:17:59 hours IST of 30th March, 2022, on the ground that before expiry of such time granted to file such reply/objection to the aforesaid show-cause-notice/draft assessment, the respondent/Assessing Officer passed the impugned assessment order on 30th March, 2022 at 15:17:08 IST and it is the specific case of the petitioner as appears from paragraph 5 of the pleadings in the writ petition that the petitioner could not file reply or objection to the aforesaid show-cause-notice due to technical glitches in the portal of the Department.
3. Learned Advocate appearing for the respondents could not deny the aforesaid allegation of the petitioner, which are substantiated by record.
4. Considering the submission of the parties, I am of the view that the impugned assessment order dated 30th March, 2022, which has been passed before the expiry of the time granted by the Assessing Officer to the petitioner to file reply to the aforesasid showcause-notice relating to the draft assessment in question and further in view of the technical glitches in the portal of the Department by which petitioner could not file his aforesaid objection, the impugned assessment order is not sustainable in law and the same is set aside and the case is remanded back to the Assessing Officer concerned to pass a fresh assessment order in accordance with law after giving an opportunity to the petitioner to file reply to the aforesaid show-cause-notice dated 29th March, 2022, which shall be filed by the petitioner within seven days from date and shall pass a reasoned and speaking order and by observing principle of natural justice.
5. With these observations, this writ petition being WPA 8232 of 2022 is disposed of.
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....
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.
Violation of the principle of natural justice due to unreasonable time given to file reply to show cause notice
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
Violation of principles of natural justice due to failure to provide a reasonable opportunity to file a reply to the Show Cause Notice and draft assessment order.
The court established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
The court ruled that an assessment order issued without observing due process and the principles of natural justice is invalid, necessitating a fresh assessment.
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....
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