Case Law Details
Mohammed Sait Vs National Faceless Assessment Centre Rep By Additional / Joint / DCIT /ITO (Karnataka High Court)
In a significant decision, the Karnataka High Court addressed the issue of procedural fairness in income tax assessments, specifically in Mohammed Sait’s case against the National Faceless Assessment Centre. The petitioner challenged the legality of an assessment order under Section 143(3) of the Income Tax Act, 1961, citing violations of natural justice.
The petitioner argued that the assessment order, along with associated notices and computation sheets, was unjustly passed without allowing sufficient time to respond to a show cause notice issued just two days before the mandated reply date. This short timeframe, according to the petitioner, prevented a fair opportunity to present a defense, ultimately prejudicing the case.
The court examined the records and acknowledged that the short notice period of two days for reply indeed violated principles of natural justice. Emphasizing the importance of procedural fairness, the court set aside the assessment order, computation sheets, demand notices, and related notices. The matter was remanded to the stage where the petitioner could adequately respond to the show cause notice.
In its judgment, the Karnataka High Court upheld the principles of natural justice and fairness in administrative proceedings, ensuring that taxpayers have adequate time to respond to notices and defend their cases effectively.
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