Bombay HC Quashes Assessment, Imposes Costs for order before expiry of time to file reply

Mateen Pyarali Dholakia Vs Union of India & Ors (Bombay High Court) In a significant ruling emphasizing adherence to due process, the Bombay High Court has quashed an income tax assessment order, along with its consequential demand and penalty notices, on grounds of a fundamental breach of natural justice. The court observed that the assessment order was issued prematurely, even before the taxpayer’s allotted time to respond had expired, and critically, without considering a reply that had already been filed. The judgment also initiated proceedings against an Assistant Commissioner o...