An assessment order passed by violating the principles of natural justice and lacking consistency between the reasons in the initial notice and the show cause notice is liable to be set aside for fresh adjudication.

ORDER

Heard the learned counsel for the Petitioner and the learned Senior Standing Counsel for the Respondent.

2. The Petitioner is before this Court against the impugned Assessment order dated 13.03.2025 for the Assessment Year 2020-2021. The impugned order has preceded a Show Cause Notice dated 16.02.2025, wherein, five days time was given to the Petitioner to respond to the same. The Petitioner has positively responded by 21.02.2025.

3. However, the Petitioner failed to respond to the same and thereafter on

10.03.2025 the Petitioner sent representation stating that the Petitioner will file a reply in due course.

4. However on 13.03.2025, the impugned order has been passed. The reasons stated in Section 148 Notice seems to indicates that the Petitioner had purchased an immovable property during the previous year i.e., 2019-2020 assessable to tax under Assessment Year 2020-2021. The Petitioner has enclosed a copy of the sale deed dated 24.08.2020 signed with one Srinivasan Chithatoor Radhakrishnan, whereby, the Petitioner transferred an agricultural property for a total sum of Rs.1,35,00,000/-. This transaction was the reason for issuance of Section 148 Notice which has now culminated in the impugned order.

5. Prima facie indications are that demand that has been sustained in the impugned order is unsustainable on the grounds stated in the Notice issued under Section 148. However, since the Petitioner is not aggrieved by re-opening of the assessment, no opinion is expressed in this regard. No views shall be expressed in this regard and is to be eschewed in the remand proceedings in this regard.

6. The fact of the matter is that time line for completing the assessment would have expired on 31.03.2025, whereas, the impugned order has been passed on 13.03.2025 to ensure that the assessment does not lapse in view of the limitation under Section 153 of the Income Tax Act, 1961.

7. Since there is a palpable violation of principles of natural justice and there is a variance between the reasons given under Section 148 Notice and the reasons given in the Show Cause Notice, I am inclined to remit the case back to the Respondent to pass a fresh order on merits within a period of thirty days from the date of receipt of a copy of this order.

8. Needless to state, the Petitioner shall file a reply within a period of thirty days from the date of receipt of a copy of this order and upload as and when the Respondent is ready to receive the same in the Portal. The Respondent shall thereafter proceed to pass fresh assessment order.

9. Needless to state, the limitation under Section 153 shall not bind on the Respondent.

10. This Writ Petition stands disposed of with the above observations.

No costs. Connected Writ Miscellaneous Petition is closed.