Calcutta HC quashes Income Tax Assessment Order and remands the matter back to AO for violation of Principle of Natural Justice [Read Order]

The Calcutta High Court quashed the Income Tax Assessment Order and remanded the matter back to AO for violation of the principle of natural justice.

The petitioner, Tarakeswar Estate has challenged the impugned assessment order dated 20th March 2021 under Section 143(3) of the Income Tax Act, 1961 relating to the assessment year 2018-2019, mainly on the ground of violation of the principle of natural justice as well as total non-application of mind as appears from the record that the impugned final assessment order dated 20th March 2021, which has been annexed to the show- cause-notice is nothing but a carbon copy of the draft assessment order dated 27th February, 2021 as in both the draft assessment order and final assessment order, there is no change and each and every paragraph, word and sentence are the same and further, there is no reference and discussion of the reply to the show-cause-notice including the documents filed by the petitioner along with its reply to the show-cause notice against the draft assessment order, in the final assessment order.

Usually, writ court does not interfere in the assessment order under Section 143(3) of the Act, which is an appealable order but in view of these exceptional features in this case and in view of the fact that the Advocate appearing for the Respondent Income Tax Authority is not in a position to contradict these facts, which appear from the record that the impugned final assessment order which is nothing but a simple copy-paste of the draft assessment order, this Court is inclined to interfere and set aside the impugned assessment order.

The single bench of Justice Md Nizamuddin held that there is no use of keeping this writ petition pending and interest of justice will be served, if the impugned assessment order dated 20th March, 2021 is set aside and the respondent Assessing Officer is directed to pass a fresh assessment order in accordance with law and bypassing a reasoned and speaking order after observing principles of natural justice by affording the opportunity of hearing to the petitioner.

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