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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Faqir Chand – Appellant
Versus
National E-Assessment Centre, Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order based on procedural flaws (Para 2 , 3) |
| 2. failure to provide opportunity for defense due to procedural errors (Para 4 , 5) |
| 3. court analysis of natural justice violation (Para 7) |
| 4. remanding case for fresh assessment in compliance with law (Para 8) |
| 5. writ petition disposed with directions for compliance (Para 9 , 10) |
JUDGMENT
Manmohan, J.: (Oral)
CM APPL. 25044/2021 (exemption)
Allowed, subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) 8054/2021 & CM APPL. 25043/2021
2. The petition has been heard by way of video conferencing.
2.1. Present writ petition has been filed challenging the Assessment Order dated 18th June, 2021 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (`the Act') for assessment year 2018-19.
3. Learned counsel for the Petitioner states that the Respondent No.1 passed the assessment order dated 18th June, 2021 under Section 143(3) read with Section 144B of the Act by making an addition of Rs. 1,06,95,929/- (Rupees One Crore Six Lakhs Ninety Five Thousand Nine Hundred and Twenty Nine Only) against the returned income of Rs. 27,59,656/- (Rupees Twe
Assessment orders must uphold principles of natural justice, ensuring affected parties have a reasonable opportunity to respond, particularly in cases involving technical barriers to communication.
Violation of principles of natural justice due to failure to provide a reasonable opportunity to file a reply to the Show Cause Notice and draft assessment order.
Natural justice mandates that parties be given adequate time to respond to show cause notices, especially when new demands are presented.
The court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
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.
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 ....
Assessment orders must respect natural justice, providing parties an effective opportunity to respond, especially during extraordinary situations like a pandemic.
The impugned assessment order, passed without allowing the petitioner to respond within the given time frame and in light of technical glitches preventing the petitioner from filing objections, was n....
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