Dover India Private Limited Vs Assessment Unit (Karnataka High Court)
Karnataka High Court Treats Assessment Order as Fresh Show Cause Notice; Quashes Demand and Penalty Notices
The Karnataka High Court granted relief to the assessee after finding that the principles of natural justice had not been adequately followed during the faceless assessment proceedings. The assessee contended that despite requesting a video hearing, no such opportunity was provided, and that while the original show cause notices dealt with certain proposed additions, the final assessment order contained an additional disallowance that had never formed part of the show cause notice.
Accepting these contentions, the Court held that the assessee should be afforded a proper opportunity to respond to the proposed additions. Accordingly, it directed that the assessment order itself be treated as a fresh show cause notice, permitting the assessee to file a detailed reply within four weeks. The Court also quashed the consequential demand notice and penalty notice, leaving all issues on merits open for fresh consideration. It further directed that if the assessee seeks a video hearing in its reply, such opportunity should be granted before passing a fresh assessment order.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
