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2024 (6) TMI 944 - HC - Income TaxIssues: Challenge to assessment order u/s 143(3) of the Income Tax Act, 1961 on grounds of violation of natural justice. Summary: The petitioners sought to add a co-petitioner and challenged an assessment order dated 31st March 2024 u/s 143(3) of the Income Tax Act, 1961, alleging a violation of natural justice. The petitioner company, a private entity, received a show-cause notice on 26th March 2024, requiring a response by 27th March 2024. Due to a holiday on 26th March, the response was submitted on 30th March 2024. Despite this, the faceless assessment unit did not consider the response, leading to the petitioners claiming a lack of reasonable opportunity to respond. The Court acknowledged that the show-cause notice was digitally signed on 26th March 2024, after working hours, giving the petitioner only 24 hours to respond. Considering the response submitted on 30th March 2024, the Court held that the assessment unit should have considered it. The Court criticized the mechanical approach of the assessment unit in not acknowledging the response and set aside the assessment order, remanding the matter for a fresh decision with an opportunity for a personal hearing via online video conference. The Court quashed the order dated 31st March 2024 and directed the faceless assessment unit to reconsider the matter based on the response already submitted by the petitioner, providing an opportunity for a personal hearing within 6 weeks. The writ petition was disposed of with the directive that all parties act based on the official order downloaded from the Court's website.
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