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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G. S. KULKARNI, ADVAIT M. SETHNA, JJ
Madhuri Sameer Gokhale – Appellant
Versus
Addl. Joint/deputy/asst. Commissioner Of Income Tax/ Income Tax Officer – Respondent
JUDGMENT :
Advait M. Sethna, J.
1. Rule returnable forthwith. Respondents waive service. By consent of parties, heard finally.
2. As the issues and reliefs involved in both the petitions are identical, with consent of learned counsels for the parties, we dispose of these petitions by this common order, taking Writ Petition No. 3430 of 2022 as the lead petition.
3. This petition is filed under Article 226 of the Constitution of India. The petitioner is primarily aggrieved by the order dated 29 March 2022 passed by the Assessing Officer, National Faceless Assessment Centre, New Delhi (“NFAC” for short) under Section 147 read with Section 144 and 144B of the Income Tax Act, 1961 (“IT Act” for short) and consequential demand notice dated 30 March 2022 issued under section 156 of the IT Act (“Impugned Demand notice” for short). The substantive prayers read thus:-
“(a) Declare that the Impugned Order and Demand Notice dated 29 March 2022 (Exhibit A) are illegal, arbitrary, in breach of natural justice, and liable to be quashed and/or set aside;
(b) Issue a Writ of Certiorari, or a writ in the nature of Certiorari, or any other appropriate Writ, order or direction under Articles 226 and 227 of
The assessment order was invalid due to non-compliance with procedural requirements under Section 144B of the Income Tax Act, breaching principles of natural justice.
The assessment order was quashed due to violations of natural justice and failure to follow mandatory procedures under Section 144B of the Income Tax Act.
The court held that failure to provide a personal hearing as mandated by Section 144B of the Income Tax Act renders the assessment order invalid, violating principles of natural justice.
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
Reopening of assessment beyond four years without fresh tangible material or proper disposal of objections is illegal under the Income Tax Act.
Assessment - Ground of violation of principle of natural justice-not giving adequate and effective opportunity of hearing not made out - series of adjournments were granted on the prayer of the petit....
The main legal point established in the judgment is the requirement to afford the petitioner reasonable opportunity of hearing before concluding the assessment, in accordance with principles of natur....
Taxation - Faceless Assessment System/e-Assessment - It is open to authorities to carry forward process in accordance with section 144B of Act, 1961 by giving opportunity of hearing to petitioner.
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