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RAJIV SHAKDHER, GIRISH KATHPALIA
Gyan Chand Gupta – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM APPL. 48538/2023
1. Allowed, subject to just exceptions.
W.P.(C) 12328/2023 and CM APPL. 48539/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition concerns Assessment Year (AY) 2017-18.
3. The petitioner seeks to challenge the assessment order dated 28.05.2023, passed under section 147 r/w Section 144 and Section 144B of the Income Tax Act,1961 [in short, "the Act"].
4. It is not in dispute that before passing the aforementioned assessment order, a show-cause notice (SCN), dated 28.05.2022, was issued to the petitioner under Section 148A(b) of the Income Tax Act, 1961 [in short, "the Act"].
5. The record also shows that a SCN dated 15.05.2023 was also served on the petitioner/assessee.
6. Mr Nitin Gulati, who appears on behalf of the petitioner/assessee, points out that a reply dated 10.06.2022 was tendered vis-`-vis the first SCN dated 28.05.2022.
6.1. Likewise, we are told by Mr Gulati that replies were filed on 25.05.2023 and 26.05.2023 to the SCN dated 15.05.2023 albeit, after the date for filing the response provided in the said notice.
7. The record show
The court emphasized that a writ action may not be a suitable remedy for matters involving contentious facts requiring thorough enquiry, and provided the petitioner with the option to file a statutor....
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 ....
Breach of principles of natural justice in assessment proceedings under the Income Tax Act, 1961.
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.
Failure to adhere to the directions in the Standard Operating Procedure (SOP) for Assessment Unit, which led to the quashing of the impugned notices and order.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
The denial of personal hearing sought by the petitioner constituted a breach of principles of natural justice, leading to the setting aside of the order and notice.
Compliance with natural justice principles under Section 144B is mandatory, necessitating personal hearing opportunities when variances in assessment orders are proposed.
The central legal point established in the judgment is the importance of adhering to principles of natural justice and setting practical timeframes for compliance with assessment notices under the In....
The court has the authority to set aside penalty orders and demand notices that emanate from assessment orders previously set aside, and can direct the Assessing Officer to frame a fresh assessment o....
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