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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Urban Improvement Co. Pvt. Ltd. – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. violation of natural justice principles. (Para 2 , 3 , 4) |
| 2. alternative remedy available. (Para 5) |
| 3. court acknowledges lack of effective response opportunity. (Para 6) |
| 4. settled law on natural justice violations. (Para 7) |
| 5. petition disposed and order communicated. (Para 8 , 9) |
JUDGMENT
Manmohan, J. (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the Impugned Assessment Order u/s 143(3), the Impugned Notice of Demand issued u/s 156 of the INCOME TAX ACT , 1961 [the Act], both dated 23rd April, 2021 and the Show Cause Notice for Penalty dated 09th June, 2021 under Section 270A of the Act issued by the Respondent in the Petitioner's case for the Assessment Year 2018-19.
3. Learned counsel for the Petitioner states that there has been a violation of principles of natural justice as the Petitioner due to covid-19 pandemic was prevented from furnishing a response to the Show Cause Notice and file objections to the Draft Assessment Order, for reasons beyond its control and as such, the impugned order operates to the prejudice of the Petitioner.
4. He states that though the Show Cause Notice/Draft
Violation of natural justice in administrative proceedings necessitates judicial intervention, and the availability of appeals does not negate this requirement.
Violation of principles of natural justice overrides the availability of an appellate remedy.
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.
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....
Assessment orders must respect natural justice, providing parties an effective opportunity to respond, especially during extraordinary situations like a pandemic.
Assessment orders violated principles of natural justice due to lack of opportunity for the petitioner to be heard, warranting remand for fresh consideration.
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 ....
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.
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the order.
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