2021 (11) TMI 1093 - HC - Income Tax

Faceless assessment - validity of Order u/s 144 r.w.s. 254 and 144B - allegation of violation of principles of natural justice by way of not affording effective opportunity of hearing to the petitioner and not allowing him to file relevant documents in spite of repeated requests - HELD THAT - Inability on the part of the petitioner to file relevant documents due to technical glitches in the portal system of the Income Tax Department over which he has got no control and to establish these facts of facing of technical glitches petitioner has annexed series of documents annexed to the writ petition from time to time and correspondences made to the department bringing it to the notice of the department of its grievance. Respondent is not in a position to contradict these allegations which are matters of records and part of the writ petition as annexures. Considering the submissions of the parties no purpose will be served by keeping the writ petition pending and interest of justice will be served if the impugned assessment order dated 26th September, 2021 is set aside with the direction upon the respondent assessing officer to pass a fresh assessment order after affording effective opportunity of hearing to the petitioner and by observing principles of natural justice preferably within two months from date.

Summary

Issues Involved:
Violation of principles of natural justice in an income tax assessment order

Analysis:
The petitioner filed a writ petition against an impugned order dated 26th September, 2021 under Section 144 read with Section 254 and 144B of the Income Tax Act, 1961. The grievance raised was regarding the violation of principles of natural justice due to the petitioner not being afforded an effective opportunity of hearing and not being allowed to file relevant documents despite repeated requests. The petitioner cited technical glitches in the portal system of the Income Tax Department as the reason for the inability to submit the documents. The court noted the annexed documents and correspondences provided by the petitioner as evidence of facing technical issues. The respondent's advocate did not contest these allegations, acknowledging them as part of the records.

The court, after considering the submissions of both parties, concluded that keeping the writ petition pending would serve no purpose. In the interest of justice, the court decided to set aside the impugned assessment order dated 26th September, 2021. The assessing officer was directed to pass a fresh assessment order after affording an effective opportunity of hearing to the petitioner and observing principles of natural justice, preferably within two months from the date of the judgment. It was explicitly stated that the court did not delve into the merits of the assessment order but invalidated it solely on the grounds of the violation of principles of natural justice.

Consequently, the writ petition, numbered WPO 1121 of 2021, was disposed of with the aforementioned observations and directions.