Court Finds Fundamental Right Infringed; Orders Fresh Proceedings with Proper Hearing for Petitioner
In a significant judgment, the Delhi High Court on May 12, 2026, set aside an assessment order against Sanjeev Kumar Bidhuri, citing violations of the Principles of Natural Justice and the infringement of the petitioner's Fundamental Right under Article 14 of the Indian Constitution. The court's decision came in response to a writ petition challenging the assessment order and the consequential notice of demand issued on February 28, 2026, for the assessment year 2024-25.
The Division Bench, comprising Justices Dinesh Mehta and Vinod Kumar, highlighted the failure of the National Faceless Appeal Centre to consider the petitioner's reply and adjournment request. The petitioner, represented by Advocate Ms. Ananya Kapoor, argued that his request for adjournment filed on February 12, 2026, was neither explicitly accepted nor rejected by the Assessing Officer. Despite filing a reply on the requested adjourned date of February 28, 2026, an assessment order was passed without considering this submission.
The court scrutinized the process and found that the Assessing Officer did not communicate the acceptance or rejection of the adjournment request, thereby leaving the petitioner in uncertainty. This omission violated the petitioner's right to be heard, a fundamental aspect of natural justice.
The judgment emphasized the duty of the Assessing Officer to decide on adjournment requests explicitly and inform the petitioner about the decision and the next date of hearing through official communication channels. The court underscored that failing to do so infringes upon the petitioner's rights.
The High Court quashed the assessment order and notice of demand, directing the Assessing Officer to conduct fresh proceedings. The court ordered that the petitioner should be notified about the hearing date and provided a video conferencing link. Moreover, the Assessing Officer is required to consider all submissions, including the reply dated February 28, 2026, before issuing a new assessment order by August 31, 2026.
This ruling underscores the judiciary's commitment to uphold the Principles of Natural Justice and the constitutional rights of individuals in tax assessment proceedings.
Bottom line:-
Principles of Natural Justice - Assessment order passed without considering the petitioner's reply and without addressing the adjournment request violates the petitioner's Fundamental Right under Article 14 of the Constitution of India.
Statutory provision(s):
Income Tax Act, 1961 Sections 143(3), 144B, 156; Constitution of India, 1950 Article 14
