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DELHI HIGH COURT
MANMOHAN, MANMEET PRITAM SINGH ARORA
K.K Wine – Appellant
Versus
National E-assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order and penalty proceedings (Para 1) |
| 2. arguments regarding procedural adherence in assessment (Para 2 , 3 , 4 , 5) |
| 3. court's reasoning on mandatory procedures (Para 6) |
| 4. remand of case for proper consideration of objections (Para 7) |
| 5. disposition of the writ petition (Para 8) |
JUDGMENT
Manmohan, J. (Oral):
1. Present writ petition has been filed challenging the assessment order and demand notice dated 19th April 2021 as well as the subsequent penalty proceedings initiated by the Respondent under Section 270A of Income Tax Act, 1961 (hereinafter referred to as the `Act') for the Assessment Year 2018-19.
2. Learned counsel for the Petitioner states that the impugned assessment order has been passed without adverting to the reply/objections filed by the Petitioner to the show cause notice-cum-draft assessment order for the Assessment Year 2018-19. He emphasises that since a very narrow window was made available to file the response/objections, the Petitioner sought adjournment to file a response up to 15th April 2021. He submits that the impugned final assessment order dated 19th April 2021 was passed without adverting to the reply/object
The court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
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....
An assessment order passed without compliance with procedural requirements of the Income Tax Act is invalid and must be set aside.
Violation of mandatory procedure under Section 144C of the Income Tax Act and a circular issued by the Central Board of Direct Taxes led to the setting aside of the Assessment Order and restoration o....
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 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.
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 court ruled that an assessment order issued without observing due process and the principles of natural justice is invalid, necessitating a fresh assessment.
Mandatory procedures under the Income Tax Act for show cause notices and draft assessments must be followed to ensure natural justice; failure to comply renders the assessment order invalid.
An assessment order finalized without allowing objections to a draft constitutes a jurisdictional defect, rendering the order invalid.
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