Back
DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
Ketan Ribbons Pvt. Ltd. – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order and notice. (Para 1 , 2) |
| 2. petitioner's inability to respond due to covid-19. (Para 3 , 4) |
| 3. violation of principle of natural justice. (Para 5 , 6) |
| 4. writ jurisdiction and alternative remedies. (Para 7) |
| 5. setting aside the assessment order. (Para 8 , 9) |
JUDGMENT
Manmohan, J. (Oral):
1. Present writ petition has been filed challenging the assessment order dated 23rd May 2021 and also notice of demand issued under Section 156 of the Income Tax Act, 1961 [for short `the Act'] and notice for initiating penalty proceedings issued under Section 274 read with Section 271AAC(1) of the Act, of even date for the AY 2018-19.
2. The relevant facts of the present case are that the Assessing Officer had extended the timeframe for filing response/objections to the show cause notice and draft assessment order dated 22nd April 2021 from 26th April 2021 to 17th May 2021. As, admittedly, no response/objection was filed by the petitioner, the Assessing Officer proceeded to pass the impugned assessment order dated 23rd May 2021 under Section 143(3) read with Section 144B of the Act in violation of the principle of natural justice.
3. Learned counse
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.
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....
Violation of natural justice in administrative proceedings necessitates judicial intervention, and the availability of appeals does not negate this requirement.
Violation of principles of natural justice overrides the availability of an appellate remedy.
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.
An assessment order issued without observing procedural fairness and without providing adequate opportunity for compliance violates principles of natural justice.
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the order.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
