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.

ORDER :

(BHARGAV D. KARIA, J.)

1. Heard learned Senior Advocate Mr.Tushar Hemani with learned advocate Ms.Vaibhavi K. Parikh for the petitioner and learned Senior Standing Counsel Mr.Varun K. Patel with learned advocate Mr.Dev D. Patel for the respondent.

2. This petition is filed challenging the Assessment Order dated 31^st March, 2022 passed by the respondent under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short ‘the Act’) as well as the demand notice of even date issued under Section 156 of the Act for Assessment Year 2015-16 on the ground of breach of principles of natural justice as the show-cause notice for proposed addition was issued on 30^th March, 2022 and the petitioner was asked to file reply on the same day before 23.59 hours which was humanly impossible.

3. The brief facts of the case are as under :

3.1. During the year under consideration, the petitioner was engaged in the business of manufacturing and trading in ornaments and bullions. The petitioner filed return of income on 24.09.2015 declaring total income at Rs.3,87,540/-.

3.2. The case of the petitioner was reopened by issuance of notice dated 31.03.2021 under Section 148 of the Act.

3.3. The petitioner, vide letter dated 17.08.2021 (sent through email) intimated the respondent about filing of return of income and further requested to supply copy of reasons recorded for reopening.

3.4. Thereafter, the petitioner was called upon to furnish certain details vide notice dated 17.11.2021 issued under Section 142(1) of the Act. The petitioner, vide letter dated 22.11.2021 furnished certain details as called for by the respondent.

3.5. The respondent, vide notice dated 10.02.2022 issued under Section 142(1) of the Act, called upon the petitioner to furnish certain further details and petitioner, vide letter dated 16.02.2022 furnished certain further details as called for by the respondent.

3.6. It is the case of the petitioner that the respondent issued a show-cause notice dated 30.03.2022 calling upon the petitioner to show cause as to why proposed variation should not be made and assessment should not be completed accordingly and the petitioner was granted time till 23:59 hours of 30.03.2022 i.e. same day for furnishing reply to the show-cause notice.

3.7. Before the petitioner could file reply to the show-cause notice, the respondent passed the impugned Assessment Order on 31.03.2022 under Section 147 read with Sections 144 and 144B of the Act determining total income of the petitioner at Rs.2,87,69,730/- as against the returned income of Rs.3,87,540/- and consequential demand notice was also issued for the year under consideration. Hence, being aggrieved and dis-satisfied, the petitioner has preferred this petition.

4.1. Learned Senior Advocate Mr.Tushar Hemani for the petitioner has submitted that the facts of the case speaks for itself as no time was granted to the petitioner to file reply, the Assessment Order deserves to be quashed and set aside and the matter may be remanded back.

4.2. It is also pointed out by learned Senior Advocate Mr.Tushar Hemani that inspite of filing return of income in response to the notice issued under Section 148 of the Act and categorically requesting for reasons for re- opening by letter dated 17.08.2021, the same have not been provided to the petitioner.

5. As the reasons for reopening are not provided to the petitioner as averred in the petition, the respondent-Assessing Officer shall provide the reasons and the petitioner shall have an opportunity to file objections. In the facts of the case, as the Assessment Order is already passed by the respondent, the objections shall be disposed of along with a fresh de-novo Assessment Order which may be passed on remand of the matter.

6. With the aforesaid directions, the impugned Assessment Order dated 31.03.2022 as well as the demand notice of even date are hereby quashed and set aside and the matter is remanded back to the Assessing Officer to pass a fresh de-novo order