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IN THE HIGH COURT OF DELHI AT NEW DELHI
Manmohan, Navin Chawla, JJ.
Lemon Tree Hotels Ltd. - Appellant
Versus
National Faceless Assessment Centre Delhi (earlier National E-assessment Centre Delhi) & Anr. - Respondents
W.P.(C) 5427/2021 & CM Appl. 16831/2021
Decided On : 18-08-2021
Assessment Order - Income Tax Act - The court set aside the impugned assessment order, notice of demand, and notice for initiation of penalty proceedings for the assessment year 2018-2019, as they were passed without granting the petitioner a personal hearing, contrary to the principles of natural justice.
Fact of the Case:
The petitioner challenged the impugned assessment order, notice of demand, and notice for initiation of penalty proceedings issued under the Income Tax Act for the assessment year 2018-2019, stating that they were passed in breach of the principles of natural justice as a request for personal hearing was not granted.
Finding of the Court:
The court set aside the impugned assessment order, notice of demand, and notice for initiation of penalty proceedings, and remanded the matter back to the Assessing Officer to grant the petitioner an opportunity of hearing and pass a reasoned order in accordance with law.
Issues: The issue was whether the impugned assessment order was passed in breach of the principles of natural justice by not granting the petitioner a personal hearing as requested.
Ratio Decidendi: The court held that the impugned assessment order was contrary to law as it was passed without granting the petitioner a personal hearing, as required under Section 144B(7)(vii) of the Income Tax Act.
Final Decision: The court set aside the impugned assessment order, notice of demand, and notice for initiation of penalty proceedings, and remanded the matter back to the Assessing Officer to grant the petitioner an opportunity of hearing and pass a reasoned order in accordance with law.
JUDGMENT
Manmohan, J.:-- (Oral)
1. The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the impugned assessment order, notice of demand and notice for initiation of penalty proceedings dated 22nd April 2021, issued under Section 143(3) read with Section 144B, Section 156 and Section 274 read with Section 270A of the Income Tax Act, 1961 [the Act] for the assessment year [AY] 2018-2019.
3. Learned counsel for the Petitioner states that the impugned Assessment order has been passed in breach of the principles of natural justice. He states that since the matter was complex in terms of facts and law, a request for personal hearing was made to respondent No. l, via its designated e-portal, on 27thMarch 2021.
4. He contends that Respondent no. l had an obligation to grant a personal hearing to the petitioner in terms of Section 144B(7)(vii) of the Act and since personal hearing was sought and was not granted by respondent no. l before passing the impugned assessment order, the same is contrary to law.
5. Ms. Vibhooti Malhotra, learned counsel for the respondents, states that the respondents have no objection if this Court were to set aside the impugned order and remand back the matter to the Assessing Officer for passing a fresh order after following the due procedure.
6. Keeping in view the aforesaid, the impugned assessment order, notice of demand and notice for initiation of penalty proceedings dated 22nd April 2021, issued under Section 143(3) read with Section 144B, Section 156 and Section 274 read with Section 270A of the Act for the assessment year [AY] 2018-2019 are set aside and the matter is remanded back to the Assessing Officer who shall grant an opportunity of hearing to the petitioner and thereafter pass a reasoned order in accordance with law. With the aforesaid direction, the present writ petition and pending application stand disposed of.
7. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
The main legal point established in the judgment is that the principles of natural justice, including the right to a personal hearing, must be adhered to in the assessment proceedings under the Incom....
The failure to grant a personal hearing in complex assessments violates principles of natural justice as mandated by the Income Tax Act.
The court emphasized the importance of granting the petitioner an opportunity of hearing as required by Section 144B(7) of the Income Tax Act, and held that the failure to do so violated the principl....
A taxpayer's request for a personal hearing under Section 144B must be considered by the revenue authority, and failure to do so violates natural justice, rendering the assessment order null.
The failure to grant a personal hearing during assessments constitutes a violation of natural justice, mandating the setting aside of the impugned orders.
The central legal point established in the judgment is the mandatory nature of affording a personal hearing in case of a proposed variation in the assessment order, as provided in Section 144B(7) of ....
The court emphasized the obligation of the revenue to consider the request for a personal hearing and to frame standards, procedures, and processes for approving such requests under Section 144B(7) o....
The court upheld the necessity of granting a personal hearing under Section 144B(7) of the Income Tax Act, emphasizing that natural justice principles must be respected in assessment processes.
The central legal point established in the judgment is the requirement to provide an opportunity of personal hearing to the assessee as per the provisions of Section 144B (7) and the mandatory proced....
The obligation of the revenue to consider the request for a personal hearing and the absence of framed standards, procedures, and processes for dealing with such requests.
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