2021 (5) TMI 883 - HC - Income Tax

Denial of principles of natural justice - petitioner has sought an adjournment on the ground that the petitioner is collating materials necessary to substantiate its stand before the Officer. However, the impugned order of assessment has been passed without taking note of the request of the petitioner for adjournment - HELD THAT - Admittedly, the request for adjournment has not been rejected, neither the assessee duly intimated. Thus, there has been apparent violation of principles of natural justice. The impugned order is set aside. The petitioner will comply with the directions in notice dated 10.03.2021 and intimate the Assessing Officer accordingly within a period of three (3) weeks from today. The respondents will facilitate receipt of such reply by the petitioner by enabling the portal to receive the objections. Upon receipt of objections, the Assessing Authority will hear the petitioner and take forward the assessment and complete the same in accordance with law.

Summary

Issues: Violation of principles of natural justice in passing the impugned order.

The judgment delivered by the High Court of Madras pertains to a writ petition challenging an order on the grounds of violating the principles of natural justice. The petitioner had requested an adjournment to collate necessary materials before the Officer, but the impugned order was passed without considering this request, leading to an apparent violation of natural justice. The court noted that the request for adjournment was neither rejected nor duly intimated to the assessee, further emphasizing the breach of natural justice principles.

The High Court, in its ruling, set aside the impugned order and directed the petitioner to comply with the directions in the notice dated 10.03.2021. The petitioner was instructed to intimate the Assessing Officer within three weeks and provide objections through the portal. The respondents were mandated to facilitate the receipt of objections and ensure that the Assessing Authority hears the petitioner to proceed with the assessment in accordance with the law. The court's decision aimed to rectify the procedural lapse and uphold the principles of natural justice in the assessment process.

The Writ Petition was disposed of with no costs imposed on either party. The judgment concluded by closing the connected Miscellaneous Petition, bringing the legal proceedings to a resolution. The court's decision highlighted the importance of adhering to natural justice principles in administrative processes, ensuring fairness and procedural regularity in the assessment proceedings.