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MANMOHAN, NAVIN CHAWLA
Urban Improvement Co Pvt. Ltd. – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
JUDGMENT
Manmohan, J. - The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the Impugned Assessment Order u/s 143(3), the Impugned Notice of Demand issued u/s 156 of the Income Tax Act, 1961 [the Act], both dated 23rd April, 2021 and the Show Cause Notice for Penalty dated 09th
3. Learned counsel for the Petitioner states that there has been a violation of principles of natural justice as the Petitioner due to covid19 pandemic was prevented from furnishing a response to the Show Cause Notice and file objections to the Draft Assessment Order, for reasons beyond its control and as such, the impugned order operates to the prejudice of the Petitioner.
4. He states that though the Show Cause Notice/Draft Assessment Order was issued on 19th April 2021 requiring the Petitioner to explain by 22nd April 2021 as to why the assessment should not be completed as per the Draft Assessment Order, yet the petitioner could not file a response as the petitioner s office was closed due to a lockdown w.e.f. 19th April, 2021, in Delhi and as the petitioner s Chartered Accountant was suffering from Covid from 10th June, 2021 under Section 270A of the
Violation of principles of natural justice overrides the availability of an appellate remedy.
Violation of natural justice in administrative proceedings necessitates judicial intervention, and the availability of appeals does not negate this requirement.
The court affirmed that a violation of natural justice occurs if a party cannot respond due to circumstances beyond their control, allowing writ intervention despite alternative remedies.
The central legal point established in the judgment is that the Covid-19 pandemic and its impact on the petitioner's ability to respond constituted a violation of the principle of natural justice. Ad....
Violation of principles of natural justice in assessment proceedings.
The failure to consider a request for adjournment during COVID-19 lockdown breached principles of natural justice, necessitating the setting aside of the assessment order.
The court ruled that a valid assessment order under the Income Tax Act requires adherence to statutory procedures, including compliance with natural justice, particularly when external circumstances ....
Assessment orders violated principles of natural justice due to lack of opportunity for the petitioner to be heard, warranting remand for fresh consideration.
Assessment orders must respect natural justice, providing parties an effective opportunity to respond, especially during extraordinary situations like a pandemic.
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