Back
DELHI HIGH COURT
RAJIV SHAKDHER, TALWANT SINGH
Renew Power Private Limited – Appellant
Versus
National E-assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. breach of natural justice during assessment. (Para 1 , 2 , 3 , 4) |
| 2. court's reasoning on natural justice. (Para 5) |
| 3. duty of authority post show cause notice. (Para 6) |
| 4. writ petition allowed, order quashed. (Para 7 , 8) |
JUDGMENT
[Court hearing convened via video-conferencing on account of COVID-19]
Rajiv Shakdher, j. (Oral)--Via this writ petition, challenge has been laid to the assessment order, dated 22.04.2021, passed under Section 143 (3) read with Section 144B of the INCOME TAX ACT , 1961 (in short "the Act"). The impugned assessment order concerns the assessment year (in short `AY') 2018-2019. Besides this, challenge is also laid to the notice of demand issued under Section 156 of the Act and the notice for initiation of penalty proceedings issued under Section 274 read with Section 270A of the Act of even date, i.e., 22.04.2021.
2. On the previous date, i.e., 10.05.2021, while issuing notice in the matter, we had recorded the following:
"2. Mr. Ajay Vohra, learned senior counsel, who appears on behalf of the petitioner, says that there has been a breach of principles of natural justice. 2.1. According to Mr. Vohra, the show cause notice-cum-draft asses
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the order.
The assessment order was set aside due to breach of natural justice, specifically failure to consider the petitioner's objections filed before the order was made.
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.
Procedural safeguards mandated under the Income Tax Act must be adhered to, including issuing a show cause notice to the assessee before passing an assessment order.
Assessment orders violated principles of natural justice due to lack of opportunity for the petitioner to be heard, warranting remand for fresh consideration.
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.
A breach of principles of natural justice warrants setting aside an assessment order and notices, allowing for a de novo exercise by the Assessing Officer.
Non-issuance of mandatory Show Cause Notice in faceless assessments violates principles of natural justice, rendering such assessment orders invalid under the Income Tax Act.
The central legal point established in the judgment is the mandatory requirement of issuing a prior Show Cause Notice and draft assessment order before passing the final assessment order under the Fa....
The assessing officer must consider any requests for accommodation before issuing assessment orders, ensuring procedural fairness in tax assessments.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
