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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Renew Wind Energy (Shivpur) Private Limited – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to the assessment order and procedural issues (Para 1 , 4 , 5 , 6) |
| 2. petitioner seeks remand (Para 2) |
| 3. court's view on natural justice violations (Para 3 , 7) |
| 4. directions for procedural compliance and decision (Para 8) |
| 5. disposition of the writ petition (Para 9) |
JUDGMENT
Manmohan, J. (Oral)--Today Mr.Ruchir Bhatia, learned counsel for the Revenue, once again requests for an opportunity to file a counter affidavit. On the last date of hearing i.e., 28th September, 2021, Mr.Ruchir Bhatia, learned counsel for the Revenue, had accepted notice on behalf of the respondent and had been directed to file a counter affidavit within a period of four weeks. However, no counter affidavit has been filed till date.
2. Learned senior counsel for the petitioner states that the petitioner is only praying for a remand.
3. Keeping in view the aforesaid limited prayer, further time to file a counter affidavit is declined and the matter is taken up for hearing.
4. It is pertinent to mention that present writ petition has been filed challenging the impugned draft assessment order dated 02nd September, 2021 passed by the respondent under Section 143(3) read with Section
Procedural fairness in administrative actions requires sufficient notice and time for response; violations can invalidate assessments under tax law.
Violation of principles of natural justice in the issuance of draft assessment orders under the Income Tax Act, 1961.
Premature issuance of an assessment order before the response period violates natural justice, leading to the quashing of the order and remand for proper adjudication.
The court emphasized the importance of considering the petitioner's reply and according a personal hearing before passing an assessment order under the Income Tax Act, 1961.
Violation of principles of natural justice and failure to adhere to the timeline given in the notice led to the setting aside of the impugned assessment orders.
Natural justice mandates that parties be given adequate time to respond to show cause notices, especially when new demands are presented.
Breach of principles of natural justice leading to the quashing of assessment order, notice of demand, and penalty notice.
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.
The court ruled that an assessment order issued without observing due process and the principles of natural justice is invalid, necessitating a fresh assessment.
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.
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