HC Set Aside Assessment Order for lack of adequate opportunity

HIROTEC India Private Limited Vs Assessing Officer (Madras High Court)

Introduction: In the case of HIROTEC India Private Limited vs. Assessing Officer, the Madras High Court’s recent judgment emphasizes the importance of upholding principles of natural justice in the assessment process under the Income Tax Act, 1961. This article delves into the details of the case, highlighting the violation of these principles and the subsequent quashing of the assessment order.

Impugned Assessment Order and Show Cause Notice: The petitioner contested the impugned Assessment Order dated September 21, 2022, with reference to DIN:ITBA/AST/S/143(3)/2022-2023/1045749202(1). This order was issued under Section 143(3) read with Section 144B of the Income Tax Act, 1961, for the Assessment Year 2020-2021. It followed a Show Cause Notice dated September 5, 2022, which required a response by September 9, 2022.

Late Response and Video Conferencing Request: The petitioner responded to the Show Cause Notice on September 19, 2022, which was belated. On the same day, the petitioner also requested a video conferencing session. The petitioner successfully sent the video conferencing request, but the respondent proceeded to pass the impugned order on September 21, 2022.

Challenging the Assessment Order: The petitioner swiftly approached the Court, alleging that the impugned Assessment Order had been passed in gross violation of the principles of natural justice.

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