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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Centum Finance Limited – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order (Para 2) |
| 2. violation of natural justice and e-filing issues (Para 3 , 4) |
| 3. insufficient time for instructions and responses (Para 5 , 6 , 7) |
| 4. setting aside assessment order with liberty (Para 8) |
| 5. disposal of writ petition and order transmission (Para 9 , 10) |
JUDGMENT
Manmohan, J. (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the assessment order and demand notice dated 11th June, 2021 passed by the National Faceless Assessment Centre, Delhi under Section 143(3) read with Section 144B. Petitioner also seeks stay on the demand arising out of the impugned assessment order.
3. Learned counsel for the Petitioner states that the impugned assessment order has been passed without observing the principles of natural justice, inasmuch as, the compliance date for show cause-cum-draft assessment order dated 23rd May, 2021 was 07th June, 2021. He points out that the action of the Respondent in passing the impugned assessment order was in violation of the directions issued vide Notification No. 486/2020-21 dated 19th May 2021 by Directorate of Income Tax (Systems) and CBD
An assessment order issued without observing procedural fairness and without providing adequate opportunity for compliance violates principles of natural justice.
Taxation - Assessment order - Challenged - Impugned assessment order has been passed without providing adequate opportunity to submit reply in response to show cause-cum-draft assessment order.
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
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 ....
Assessment orders must respect natural justice, providing parties an effective opportunity to respond, especially during extraordinary situations like a pandemic.
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.
Assessments without proper prior notice and opportunity to be heard violate natural justice principles as mandated under Section 144B of the Income Tax Act.
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....
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