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DELHI HIGH COURT
RAJIV SHAKDHER, TALWANT SINGH
YCD Industries – Appellant
Versus
National Faceless Assessment Centre, Delhi – Respondent
| Table of Content |
|---|
| 1. lack of due process in assessment order. (Para 3 , 7 , 8 , 9 , 10 , 11 , 12 , 13) |
| 2. contentions of parties on natural justice. (Para 14 , 15) |
| 3. court's analysis on violation of natural justice. (Para 16) |
| 4. setting aside assessment order with guidelines for new hearing. (Para 17 , 18) |
| 5. conclusion and closure of the petition. (Para 19) |
JUDGMENT
[Court hearing convened via video-conferencing on account of COVID-19]
Rajiv Shakdher, J. (Oral)
CM APPL. 17212/2021
1. Allowed, subject to just exceptions.
CM APPL. 17213/2021
2. The prayer made in the captioned application is to grant exemption from filing requisite court-fee and sworn/notarised/affirmed affidavit. The captioned application is disposed of with a direction to the petitioner to place on record the duly sworn/notarised/affirmed affidavit and to deposit the requisite court-fee, within three days of the resumption of the normal and usual work pattern by this court.
W.P.(C) 5552/2021 and CM APPL. 17211/2021 [Application filed on behalf of petitioner, under Section 151 of Code of Civil Procedure, 1908, seeking stay on the operation of order passed by respondent, dated 20.04.2021]
3. The principal grievance of
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 must adhere strictly to procedural requirements, including show cause notices, to ensure fairness in the income assessment process.
The impugned assessment order and consequential notices were set aside as they were passed without issuance of a show cause notice-cum-draft assessment order, as required by Section 144B of the Act a....
Failure to grant a personal hearing in tax assessments, as required under Section 144B of the Income Tax Act, renders such assessments non-est in law.
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 absence of a show cause notice in tax assessments violates natural justice, requiring annulment of any adverse variations to taxable income.
The failure to grant a personal hearing in assessment proceedings violates principles of natural justice, invalidating the assessment order.
The court found a breach of natural justice due to the respondent's failure to consider the petitioner's request for adjournment, resulting in the setting aside of the assessment order.
The court emphasized the obligation of the revenue to consider the request for a personal hearing and to frame standards, procedures, and processes for approving such requests under Section 144B(7) o....
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