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 of Income Tax for allegedly making incorrect statements under oath.
The case, involving Mateen Pyarali Dholakia as the petitioner against the Union of India and others, centered on an assessment order dated April 12, 2021, pertaining to Assessment Year 2018-19. The petitioner challenged this order, asserting that it was passed in violation of the principles of natural justice.
According to court records, the petitioner received a show cause notice on April 8, 2021. This notice, digitally signed at 22:50:08 IST, explicitly directed the petitioner to submit a response through their e-filing account by “23:59 hours of 12/04/2021.” In compliance with this directive, the petitioner filed their reply on April 12, 2021, at 8:20 a.m., as evidenced by the e-Proceedings Response Acknowledgment submitted to the court.
