Show cause notices were issued to the petitioner requiring it to show cause as to why the proposed variation should not be made for concerned years and replies were sought from the petitioner and an option was given to the petitioner to seek personal hearing through video conferencing. Option for submitting a reply and seeking a personal hearing on the “Dashboard of the Income Tax Portal” was found to be closed by the petitioner on or about 12:30 PM, i.e. well before the time limit given in the show cause notices that is, 23:59 hours of 19.03.2022. Due to the untimely/premature closure of the window, the petitioner was unable to file the reply and was also prevented from seeking an opportunity for a personal hearing.

Held that proceedings done by the NFAC suffer from gross violation of principles of natural justice and thus, the petitioners cannot be thrown out on the ground of alternative remedy. The Assessment order passed was declared invalid and quashed and set aside by providing a reasonable opportunity to submit the reply and if so provide a personal video conference hearing.  (AY. 2013-14,  2016-17)