Allowing the petition the Court held that the reasons for re-opening the assessments had not been furnished to the assessee. The orders of reassessment had been passed without hearing the assessee and a consequent demand notice had also been issued. There had been a breach of the principles of natural justice and the procedure required to be adopted for passing assessment orders on reassessment and demand orders had not been followed. Therefore, an exceptional case had been made out for invoking power under article 226 of the Constitution of India. Both the orders being unsustainable the assessment and demand orders were liable to be quashed. (AY. 2012-13 to 2016-17)
North Eastern Electric Power Corporation v. PCIT (2019) 416 ITR 425/ 182 DTR 16/ 310 CTR 706 (Meghalaya) (HC)
S. 147 : Reassessment–Reasons for issue of notice must be given –Objections must considered by passing speaking order– Reassessment is held to be not valid-Existence of alternative remedy would not bar issue of writ. [S.148, Art. 226]