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MANMOHAN, MANMEET PRITAM SINGH ARORA
Ketan Ribbons Private Limited – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
ORDER
Manmohan, J. (Oral). - Present writ petition has been filed challenging the assessment order dated 23rd May 2021 and also notice of demand issued under Section 156 of the Income Tax Act, 1961 [for short 'the Act'] and notice for initiating penalty proceedings issued under Section 274 read with Section 271AAC(1) of the Act, of even date for the AY 2018-19.
2. The relevant facts of the present case are that the Assessing Officer had extended the timeframe for filing response/objections to the show cause notice and draft assessment order dated 22nd April 2021 from 26th April 2021 to 17th May 2021. As, admittedly, no response/objection was filed by the petitioner, the Assessing Officer proceeded to pass the impugned assessment order dated 23rd May 2021 under Section 143(3) read with Section 144B of the Act in violation of the principle of natural justice.
3. Learned counsel for the Petitioner contends that the Petitioner was unable to file reply due to the lockdown imposed in the NCT of Delhi on 19th April 2021 due to the Covid-19 pandemic. He emphasises that for reasons beyond the Petitioner's control and in particular COVID-19 pandemic, non-accessibility to login credentials and m
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....
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.
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.
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.
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 ....
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the order.
Taxation - Assessment order - Challenged - Impugned assessment order has been passed without providing adequate opportunity to submit reply in response to show cause-cum-draft assessment order.
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