Passing order without disposing of request of adjournment is violation of principles of natural justice: HC

  • Blog|Income Tax|News|
  • 65 Views
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 20 October, 2021

Assessment - Faceless assessment (Opportunity of hearing)

Case Details: Sudev Industries Ltd. v. National Faceless Assessment Centre - [2021] 131 taxmann.com 74 (Delhi)

Judiciary and Counsel Details

    • Manmohan and Navin Chawla, JJ.
    • Ms. Kavita Jha and Udit Naresh, Advs. for the Petitioner. 
    • Puneet Rai, Sr. SC and Ms. Adeeba Mujahid, Jr. SC for the Respondent.

Facts of the Case

Assessee filed the writ petition before the Delhi High Court challenging the faceless assessment order, notice of demand, and notices of initiation of penalty proceedings.
The assessee submitted that the Assessment Order and the notices issued by the Assessing Officer were patently illegal, bad in law, issued without application of mind, and the same is against the principles of natural justice.
Assessee submitted that the adjournment application/letter filed by it wasn’t considered by Assessing Officer. The Chartered Accountant and his entire family were suffering from Covid-19 pandemic during the relevant time, and therefore, the assessee did not have adequate opportunity to file his response against the draft assessment order.
The Delhi High Court held that Section 144B(7) mandatorily provides for the issuance of a prior show cause notice and draft Assessment Order before issuing the final Assessment Order. The said section also provides for an opportunity of personal hearing, if requested, by the assessee.

High Court Held

In the instant case, the Assessing Officer had proceeded to pass the Assessment Order without dealing with the assessee’s request for adjournment. Thus, there had been a violation of the principles of natural justice.
Accordingly, the Assessment Order, notice of demand, and penalty notices are set aside. Further, the matter is remanded back to the Assessing Officer, who shall grant an opportunity of personal hearing by way of Video Conferencing after serving a copy of the draft Assessment Order, and thereafter pass a reasoned order in accordance with law.

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

Subscribe to our weekly news letters!

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied