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MANMOHAN, NAVIN CHAWLA
Faqir Chand – Appellant
Versus
National E-assessment Centre, Delhi – Respondent
JUDGMENT
Manmohan, J. - Cm APPL. 25044/2021 (exemption)
Allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) 8054/2021 & CM APPL. 25043/2021
1. The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the Assessment Order dated 18th June, 2021 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 ('the Act') for assessment year 2018-19.
3. Learned counsel for the Petitioner states that the Respondent No.1 passed the assessment order dated 18th June, 2021 under Section 143(3) read with Section 144B of the Act by making an addition of Rs. 1,06,95,929/- (Rupees One Crore Six Lakhs Ninety Five Thousand Nine Hundred and Twenty Nine Only) against the returned income of Rs. 27,59,656/- (Rupees Twenty Seven Lakhs Fifty Nine Thousand Six Hundred and Fifty Six Only) resulting in total assessed income of Rs. 1,34,55,590/ (Rupees One Crore Thirty Four Lakhs Fifty Five Thousand Five Hundred and Ninety Only).
4. He contends that Respondent No.1 apparently copied the addition proposed in Show Cause Notice dated 09th June, 2021 in the final assessment order and failed to give any rea
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.
Assessment orders must uphold principles of natural justice, ensuring affected parties have a reasonable opportunity to respond, particularly in cases involving technical barriers to communication.
Insufficient time provided to respond to a complex show cause notice violates principles of natural justice, warranting the reassessment of the proceedings.
Natural justice mandates that parties be given adequate time to respond to show cause notices, especially when new demands are presented.
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
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 established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
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 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....
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