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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Gita Rattan International Business School - Appellant
Versus
North Delhi Municipal Corporation - Respondent
W.P.(C) 1176 of 2022 & CM. Appls. 3395-96 of 2022
Decided On : 19-01-2022
| Table of Content |
|---|
| 1. assessment order details and payments made. (Para 2 , 4) |
| 2. dispute over show cause notice and willingness for fresh hearing. (Para 3 , 6 , 7 , 8) |
| 3. notice and order publication directives. (Para 5 , 11) |
| 4. setting aside rectification order and staying coercive steps. (Para 9 , 10) |
JUDGMENT
Sanjeev Sachdeva, J. (ORAL)--The hearing was conducted through video conferencing.
2. Appellant impugns suo motu assessment order dated 14.01.2019 as well as the rectification order dated 27.05.2021.
3. Learned counsel for the petitioner submits that no show cause notice was issued prior to passing of the suo motu assessment order 14.01.2019. She further submits that show cause notice dated 12.03.2021, received post the assessment order, was duly responded to by a detailed reply dated 27.03.2021. She submits that the impugned rectification order dated 27.05.2021, though refers to the reply given, however, no grounds taken by the petitioner have been dealt with in the rectification order.
4. Learned counsel for the petitioner submits that a total amount of Rs.72,46,595/- has already been deposited with the respondents (Rs.5,00,000/- on 14.01.2019, Rs.5,92,485/- on 23.03.2021 and thereafter Rs.61,54,110/- on 31.03.2021).
5. Issue notice. Notice is accepted by learned counsel for respondents.
6. Learned counsel for respondents submits that the assessment order dated 14.01.2019 preceded a show cause notice dated 08.10.2019 on account of wrong filing of PTR for the Financial Years 2004-05 to 2017-18.
7. Learned counsel for the petitioner disputes receipt of the said notice dated 08.10.2018.
8. Learned counsel for respondents submits that that without prejudice to the above, respondents are willing to give a fresh hearing to the petitioner and pass a fresh detailed speaking rectification order.
9. In view of the above, the rectification order dated 27.05.2021 is set aside. Petition is disposed of directing the respondents to grant a personal hearing to the petitioner and pass a speaking order taking into account the grounds raised by the petitioner in their reply as well as the objections submitted to them.
10. Till passing of the rectification order, no further coercive steps shall be taken against the petitioner pursuant to the assessment order dated 14.01.2019.
11. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through e-mail by the Court Master.
Procedural fairness mandates that parties be given adequate notice and opportunity to respond before adverse administrative decisions are made.
The court reinforced that the principles of natural justice require that parties be given notice and opportunity to respond before adverse decisions are made.
Violation of principles of natural justice due to reliance on evidence created after the petitioner's reply constitutes a procedural irregularity.
Procedural fairness requires clear communication of discrepancies and an opportunity for defense in tax assessment processes.
Proper opportunity of hearing and clear show cause notice are essential before passing an assessment order.
The assessing officer must consider any requests for accommodation before issuing assessment orders, ensuring procedural fairness in tax assessments.
The principle of natural justice and the requirement for factual accuracy in assessment orders were central to the court's decision.
The assessing authority must consider submitted objections before amending the assessment list, ensuring compliance with statutory obligations and providing fair opportunity for hearing.
The necessity of issuing a show cause notice cum draft assessment order before making any upward revision in income for assessment under the Income Tax Act, 1961.
Quash of Assessment – Demand notice - Order records to the contrary that no response has been received from the recorded owner with regard to the said notice.
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