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IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Navin Chawla, JJ.
Bl Gupta Construction Private Limited - Appellant
Versus
National E-assessment Centre & Ors. - Respondents
Civil Writ Petition No. 5060 of 2021
Decided On : 10-09-2021
Natural Justice - Assessment Order - The court quashed the assessment order, notice of demand, and penalty notice due to a breach of principles of natural justice, as the order was passed before the end date given in the show cause notice.
Fact of the Case:
The petitioner challenged the assessment order, notice of demand, and penalty notice issued on 25th March, 2021, claiming a breach of principles of natural justice.
Finding of the Court:
The court found that there was a breach of principles of natural justice as the assessment order was passed before the end date given in the show cause notice, and the respondents failed to file a counter affidavit despite sufficient opportunity.
Issues: Breach of principles of natural justice, validity of assessment order, notice of demand, and penalty notice.
Ratio Decidendi: The court held that the assessment order, notice of demand, and penalty notice dated 25th March, 2021, were quashed due to a breach of principles of natural justice, and the matter was remanded back to the Assessing Officer for a decision in accordance with law.
Final Decision: The assessment order, notice of demand, and penalty notice dated 25th March, 2021, were quashed, and the matter was remanded back to the Assessing Officer for a decision in accordance with law.
JUDGMENT
Manmohan, J. - Present writ petition has been filed challenging the assessment order, notice of demand as well as penalty notice under Section 271AAC all dated 25th March, 2021.
2. Mr. Ved Jain, learned counsel for the petitioner states that vide show cause notice dated 18th March, 2021, the petitioner was called upon to respond to the draft assessment order till 23:59 hours on 26th March, 2021. He states that prior to the date stipulated in the show cause notice, the impugned assessment order was passed on 25th March, 2021. He also states that on the very same day, the notice of demand as well as penalty notice was issued to the petitioner.
3. Mr. Kunal Sharma, learned counsel for the respondents prays for some further time to file a counter affidavit and obtain instructions.
4. However, we find that the notice in the present writ petition had been issued on 29th April, 2021 and the matter was adjourned to 21st May, 2021. On 21st May, 2021, Mr. Sharma had been given further time to file a counter affidavit and the interim stay granted by this Court was made absolute. However, till date, no counter affidavit has been filed.
5. This Court is of the view that the respondents have had sufficient opportunity to file a counter affidavit. Consequently, this Court has no other option but to proceed ahead with the matter.
6. Keeping in view the unrebutted averments in the writ petition, this Court is of the view that there has been a breach of principles of natural justice, inasmuch as, prior to the end date given in the show cause notice of 26th March, 2021, the impugned assessment order had been passed on 25th March, 2021. Consequently, the impugned assessment order, notice of demand as well as penalty notice dated 25th March, 2021 are quashed and the matter is remanded back to the Assessing Officer and he is directed to decide the same in accordance with law as expeditiously as possible. Petitioner is directed to file its reply to the show cause notice and draft assessment order within three working days. To facilitate filing of the said reply, AO is directed to open ITBA portal so that the petitioner can file its reply.
7. With the aforesaid directions, present writ petition stands disposed of.
Breach of principles of natural justice leading to the quashing of assessment order, notice of demand, and penalty notice.
Premature issuance of an assessment order before the response period violates natural justice, leading to the quashing of the order and remand for proper adjudication.
A breach of principles of natural justice warrants setting aside an assessment order and notices, allowing for a de novo exercise by the Assessing Officer.
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 court emphasized the importance of adhering to principles of natural justice and providing adequate time for response in assessment proceedings.
Failure to consider a request for accommodation on medical grounds by the Assessing Officer amounted to a breach of principles of natural justice, leading to the setting aside of the impugned assessm....
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....
Procedural due process in tax assessments requires adherence to statutory mandates, including the issuance of show cause notices, failure of which invalidates the assessment order.
Violation of Standard Operating Procedure (SOP) and breach of natural justice warrant setting aside assessment order and notices, and necessitate a de novo exercise by the Assessing Officer.
The court reinforced that the principles of natural justice require that parties be given notice and opportunity to respond before adverse decisions are made.
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