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DELHI HIGH COURT
MANMOHAN, DINESH KUMAR SHARMA
Rahul Biala – Appellant
Versus
Income Tax Officer – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order. (Para 1) |
| 2. insufficient time for response to notice. (Para 2 , 3) |
| 3. time limitation affected assessment. (Para 4) |
| 4. violation of natural justice acknowledged. (Para 5) |
| 5. order set aside; response timeline established. (Para 6 , 7) |
JUDGMENT
Manmohan, J. (Oral)--Present writ petition has been filed challenging the assessment order dated 31st March, 2022 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short `the Act') for the Assessment Year 2016-17.
2. Learned counsel for the Petitioner states that the Petitioner was not given reasonable time to file reply to the show cause notice which was issued only on 30th March, 2022 at 16:21 p.m. effectively giving the Petitioner only eight hours' time to file reply to the show cause notice. He states that it was not possible to gather all the details of expenses incurred towards improvement of property, details of exemption claimed under Section 54 of the Act and the authentic supporting documents/evidences, which had been referred to in the draft assessment order.
3. Learned counsel for the Petitioner contends that the time gap between giving the show cause
Natural justice mandates that parties be given adequate time to respond to show cause notices, especially when new demands are presented.
Insufficient time provided to respond to a complex show cause notice violates principles of natural justice, warranting the reassessment of the proceedings.
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 failure to provide adequate opportunity to respond in tax assessment proceedings constitutes a violation 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....
Violation of the principle of natural justice due to lack of reasonable time to file objections to the reasons furnished by the Respondents
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 court established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
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 an assessment order issued without observing due process and the principles of natural justice is invalid, necessitating a fresh assessment.
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