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RAJIV SHAKDHER, TARA VITASTA GANJU
Samir Saran – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM APPL. 3109/2023
1. Allowed, subject to just exceptions.
W.P.(C) 801/2023
2. Issue notice. 2.1 Mr Sunil Agarwal accepts notice on behalf of the respondents/revenue.
3. In view of the directions that we propose to pass, Mr Agarwal says that counter-affidavit is not required to be filed. Therefore, with the consent of the counsels for the parties, the writ petition is taken up for final hearing and disposal, at this stage itself.
4. This writ petition is directed against assessment order dated 29.12.2022 passed under Section 143(3), read with Section 144B of the Income Tax Act, 1961 [in short, "the Act"] concerning Assessment Year (AY) 2021-22.
4.1. Besides this, challenge is also being laid to the notice of demand of even date i.e., 29.12.2022, issued under Section 156 of the Act and the consequential proceedings initiated under the Act.
5. The record, as made available to the court, shows that a show cause notice dated 20.12.2022 was served on the petitioner/assessee proposing an upward variation in income chargeable to tax.
5.1. The record also shows that the petitioner/assessee had filed a re
Grant of personal hearing is a mandatory requirement under Section 144B(6)(vii) of the Income Tax Act, and failure to provide such a hearing can result in the setting aside of the assessment order.
Breach of principles of natural justice in assessment proceedings under the Income Tax Act, 1961.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
Denial of a personal hearing in income assessment cases under Section 144B(6)(vii) violates natural justice, necessitating the assessment order's cancellation.
A personal hearing is essential in tax assessment procedures to ensure administrative fairness; failure to provide one invalidates the assessment orders.
The court emphasized the importance of providing a personal hearing to the assessee as per the provisions of Section 144B(6)(vii) and (viii) of the Income Tax Act, 1961.
Failure to grant a personal hearing by the Assessing Officer violates principles of natural justice, necessitating the annulment of the assessment order.
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 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.
Failure to grant a personal hearing in tax assessments, as required under Section 144B of the Income Tax Act, renders such assessments non-est in law.
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