301 orders · Page 7 of 7
The High Court held that the impugned assessment order dated March 29, 2022, passed under Section 147 read with Sections 144 and 144B of the Income Tax Act for the assessment year 2015-16, was liable to be set aside. The Court found that there was a clear violation of the principles of natural justice. The petitioner-assessee was not afforded an opportunity of being heard, nor was sufficient time granted for filing a reply to the notice dated March 12, 2022, issued under Section 142(1) of the Income Tax Act. Consequently, the Court set aside the assessment order and remanded the matter back to the 1st respondent, the National Faceless Assessment Centre, New Delhi. The 1st respondent was directed to provide the petitioner with an opportunity of being heard before finalizing the assessment. It was clarified that the petitioner would not be afforded more than one opportunity of hearing through video conference. A fresh assessment order was to be passed after hearing the petitioner and considering the submissions. The ratio decidendi is that failure to provide a reasonable opportunity of hearing and adequate time for compliance with statutory notices constitutes a violation of natural justice, vitiating the assessment order.
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