Assessment Set aside

The Karnataka High Court quashed a faceless assessment order after finding that the assessee was denied a meaningful opportunity to explain a ₹2.50 crore property investment. 

Although time was granted until 14 March 2026 to furnish supporting documents, the assessment portal was closed a day earlier and the assessment was finalized on the basis of non-submission of evidence. 

Holding that procedural fairness cannot be compromised by technological or administrative actions, the Court restored the assessment proceedings and directed fresh adjudication after providing an effective opportunity to the assessee.