Brief Facts 

In the case of Dinesh Kumar Chhaganbhai Nandani v. Income Tax Officer, a petition was filed under Article 226 of the Indian Constitution, asking the court to nullify and annul the Income Tax Officer respondent’s contested assessment decision and order that a new one be issued. In his income tax return for the assessment year 2014–2015, the petitioner stated that he had earned a total of Rs. 3,39,730. On March 31, 2021, the respondent sent a show-cause notice, and on April 30, 2021, the petitioner filed a return. A show cause notice was issued on February 15, 2022, after more notices had been sent. Initial objections made by the petitioner to halt the assessment processes were denied. The petitioner claimed that a show cause order was issued on March 29, 2022, but that only 12 hours were allotted for filing a reply, which was judged insufficient and in violation of the natural justice principle.

Analysis of court order 

The petition was approved and the contested order was overturned by the division bench of the Gujrat High Court’s justices Vipul M. Pancholi and Devan M. Desai because the petitioner was not given a sufficient window of time to file a complete reply and because it was challenging for the petitioner to do so within the allotted 12-hour time frame.

The petitioner needed to be provided a fair and appropriate chance when the show causes notice-cum-draft assessment order was issued, according to the court. As a result, the Court declared that the petition was only approved on the grounds that the petitioner was not provided with a sufficient chance. The Court so nullified and annulled the contested assessment order dated 31-03-2022. The Court further stated that the respondent would not be prohibited from taking any further action from the position it was in when it was left.

CASE NAME – Dinesh Kumar Chhaganbhai Nandani v. Income Tax Officer, R/SCA No. 7864 of 2022.