2023 (5) TMI 166 - HC - Income Tax

Validity of assessment order - Shorter period to reply to SCN - violation of principles of natural justice - The adjournment application submitted by the petitioner on 25.03.2023 in the portal was rejected on the ground that time for completion of assessment is barred on 31.03.2023. - HELD THAT - Admittedly, the second show cause notice was issued to the petitioner on 27.03.2023 at 19.10.33 p.m. and the petitioner was given time to reply till 9.00a.m. on 28.03.2023, which is clear violation of principles of natural justice. The impugned order passed by the first respondent is set aside and the matter is remanded back to the respondents for fresh consideration. Respondents shall pass appropriate orders, within a period of four weeks from the date of receipt of a copy of this order. WP allowed.

Summary

Issues involved: Violation of principles of natural justice in assessment proceedings.

Summary:
The petitioner filed a writ petition seeking a Writ of Certiorarified Mandamus to challenge an order by the first respondent related to the Assessment Year 2018-19. The petitioner claimed that they were not given a proper opportunity to provide detailed explanations before the assessment. Despite submitting relevant details and seeking more time, the petitioner was issued a second show cause notice with insufficient time to respond. The petitioner argued that this violated the principles of natural justice as they were not able to reply during late hours. The Court found that the second show cause notice with limited response time indeed breached natural justice principles. Consequently, the impugned order was set aside, and the matter was remanded back to the respondents for fresh consideration within four weeks while ensuring the petitioner is given a proper opportunity. The writ petition was allowed with no costs, and connected miscellaneous petitions were closed.