Sai Kiran Clearing Co. Pvt. Ltd. Vs DCIT (Bombay High Court)
The Bombay High Court has set aside a reassessment order dated March 30, 2022, citing a “gross and apparent violation of principles of natural justice.” The ruling came in a writ petition challenging the order, which was passed by the second respondent even before the petitioner’s response to a show cause notice could be considered.
The petitioner had been issued a show cause notice on March 29, 2022, requiring a response by 11:59 PM on March 30, 2022. Despite the short timeframe, the petitioner filed their response at 5:59 PM on March 30, 2022. However, the impugned reassessment order was issued earlier, at 5:22 PM on the same day. This meant the petitioner’s timely submitted response was entirely overlooked by the assessing authority.
Counsel for the petitioner, Mr. Bhatt, argued that this constituted a clear breach of natural justice, warranting the court’s intervention despite the availability of an alternate statutory remedy of appeal. He informed the court that an appeal against the order had already been filed, with the understanding that it would be withdrawn pending the outcome of the present petition.
The court acknowledged the general rule of exhausting alternate remedies but found the “undisputed facts indicate a clear violation of the principles of natural justice and fair play,” thus justifying the petition’s entertainment.
