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DELHI HIGH COURT
MANMOHAN, DINESH KUMAR SHARMA
CCTEB India Private Limited – Appellant
Versus
Deputy Commissioner of Income Tax – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order due to procedure. (Para 1 , 2 , 3) |
| 2. arguments on adequacy of notice and response. (Para 4 , 5 , 6 , 7) |
| 3. insufficient time for response noted. (Para 8) |
| 4. assessment order set aside; instructions given. (Para 9) |
| 5. writ petition disposed; rights left open. (Para 10) |
JUDGMENT
Manmohan, J. (Oral)
CM APPL.19432/2022 (exemption)
Exemption allowed subject to all just exceptions.
Accordingly, the application stands disposed of.
W.P.(C) 6417/2022 & CM APPL. 19431/2022 (stay)
1. Present writ petition has been filed challenging the Assessment Order dated 31st March, 2022, passed under Section 143(3) read with Section 153A of the Income Tax Act, 1961 (hereinafter referred to as `the Act') for Assessment Year 2019-20.
2. Learned counsel for the petitioner states that the respondent No.1 while passing the said impugned order, made additions totalling to Rs.14.75 crores primarily on the ground that the petitioner had failed to file reply to the show cause notice issued by the respondent No.1 on 21st March, 2022 around midnight. He states that the said show cause notice was served upon the petitioner via e-mail asking the petitioner to respond t
Natural justice mandates that parties be given adequate time to respond to show cause notices, especially when new demands are presented.
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.
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 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 established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
The court ruled that an assessment order issued without observing due process and the principles of natural justice is invalid, necessitating a fresh assessment.
The court emphasized the necessity of adhering to principles of natural justice, particularly the right to a fair opportunity to respond to show-cause notices in tax assessments.
The court ruled that the failure to provide adequate time for response to a show-cause notice constitutes a breach of natural justice, necessitating the quashing of the Assessment Order.
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....
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....
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