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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
M/s. Bakshi Mark (p) Ltd. – Appellant
Versus
Assessment Unit & Anr. – Respondents
W.P.(C) 9193 of 2023
Decided On : 13-07-2023
Natural Justice - Assessment Order - The court set aside the impugned assessment order for breach of principles of natural justice due to the Assessing Officer's failure to consider the petitioner's request for accommodation on medical grounds, leading to the petitioner not being able to respond to the show-cause notice. The court granted liberty to the Assessing Officer to pass a fresh order and directed the petitioner to file a response within one week.
Fact of the Case:
The petitioner challenged the impugned assessment order for Assessment Year 2016-17, alleging a breach of principles of natural justice due to the Assessing Officer's failure to consider the petitioner's request for accommodation on medical grounds, which led to the petitioner not being able to respond to the show-cause notice.
Finding of the Court:
The court set aside the impugned assessment order, granted liberty to the Assessing Officer to pass a fresh order, and directed the petitioner to file a response within one week.
Issues: Breach of principles of natural justice, failure to consider the petitioner's request for accommodation, validity of the impugned assessment order.
Ratio Decidendi: The failure of the Assessing Officer to consider the petitioner's request for accommodation on medical grounds amounted to a breach of principles of natural justice, leading to the setting aside of the impugned assessment order.
Final Decision: The writ petition was disposed of with the impugned assessment order set aside, liberty granted to the Assessing Officer to pass a fresh order, and the petitioner directed to file a response within one week.
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM APPL. 34952/2023
1. Allowed, subject to just exceptions.
W.P.(C) 9193/2023 and CM APPL. 34951/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Zoheb Hossain, senior standing counsel, accepts notice on behalf of the respondents/revenue.
3. Mr Hossain says that, in view of the directions that we propose to pass, a counter-affidavit need not be filed and that he will argue the matter based on record presently available to the court.
4. This writ petition concerns Assessment Year (AY) 2016-17.
5. The principal grievance of the petitioner qua the impugned assessment order dated 26.05.2023 is that there has been a breach of principles of natural justice.
6. The record shows that a show-cause notice dated 12.05.2023 was issued to the petitioner, indicating the proposed variation in the petitioner's income. This notice required the petitioner to file a response by 18.05.2023(11:00 hours).
7. The petitioner lodged a request for accommodation on 16.05.2023. The reason accommodation was sought concerned "medical grounds". The petitioner sought leeway till 01.06.2023.
7.1. In support of the plea that the request for accommodation was lodged, our attention has been drawn to the screenshot of the ITBA portal. [See Annexure-P2 appended on page 31 of the case file].
8. The Assessing Officer (AO), somehow, missed the request made for accommodation, and thus, went on to note that no request for accommodation was lodged. This is contrary to the record, as is noticed hereinabove.
9. Given this position, the impugned assessment order is set aside. Liberty is, however, given to the AO to pass a fresh order. Consequently, the impugned demand and penalty notices will collapse.
9.1. The petitioner will file a response to the show-cause notice dated 12.05.2023 within the next one (1) week.
9.2. The AO will open the designated portal to enable the petitioner to upload the response.
10. The AO will, thereafter, take the next steps in law.
11. The writ petition is disposed of in the aforesaid terms. Pending application shall also stand closed.
12. Parties will act based on the digitally signed copy of the order.
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....
Failure to inform the petitioner about the decision on their request for accommodation constituted a breach of principles of natural justice, warranting the setting aside of the assessment order and ....
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 necessity of issuing a show cause notice cum draft assessment order before making any upward revision in income for assessment under the Income Tax Act, 1961.
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.
Breach of principles of natural justice leading to the quashing of assessment order, notice of demand, and penalty notice.
The assessing officer must consider any requests for accommodation before issuing assessment orders, ensuring procedural fairness in tax assessments.
The central legal point established is the requirement to adhere to the principles of natural justice, including providing sufficient time for the party to respond to notices.
Breach of principles of natural justice and practical timeframe for gathering information for assessment orders.
The central legal point established in the judgment is the statutory right of the petitioner to a personal hearing under Section 144B(7)(vii) of the Income Tax Act, 1961, and the requirement for the ....
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