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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Vaibhav Jindal – Appellant
Versus
Income Tax Officer New Delhi & Anr. – Respondents
W.P.(C) 6806 of 2023
Decided On : 19-05-2023
Interim Relief - Income Tax - The court set aside the impugned order and directed the petitioner to file a reply within two weeks. The Assessing Officer (AO) was instructed to pass a fresh order considering the reply and grant a personal hearing to the petitioner.
Fact of the Case:
The petitioner received a notice under Section 148A(b) of the Income Tax Act, 1961 for Assessment Year 2019-2020. The petitioner requested an extension to file a reply due to a family bereavement, but the impugned order was passed before the extended deadline.
Finding of the Court:
The court set aside the impugned order and directed the petitioner to file a reply within two weeks. The AO was instructed to pass a fresh order considering the reply and grant a personal hearing to the petitioner.
Issues: The issue revolved around the petitioner's request for an extension to file a reply due to a family bereavement and the subsequent passing of the impugned order.
Ratio Decidendi: The court held that greater latitude should have been granted to the petitioner due to the bereavement in the family, and set aside the impugned order as a result.
Final Decision: The writ petition was disposed of with the direction for the petitioner to file a reply within two weeks, and for the AO to pass a fresh order and grant a personal hearing to the petitioner.
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral):
CM APPL. 26565/2023
1. Allowed, subject to just exceptions.
W.P.(C) 6806/2023 and CM APPL. 26564/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1 Mr. Gibran Naushad, learned senior standing counsel who appears on behalf of the respondents/revenue accepts notice.
3. Mr Nushad says, that in view of the order that we propose to pass, he does not wish to file a counter-affidavit in the matter, and he will argue the matter based on the record presently available with the Court.
4. Therefore, with the consent of the counsel for parties, the writ petition is taken up for hearing and final disposal at this stage itself.
5. This writ petition concerns Assessment Year (AY) 2019-2020.
6. The record shows, that the petitioner was issued a notice dated 31.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961 [in short, "the Act"].
7. Via this notice, the petitioner was granted time to file documents in support of his defense on or before 13.04.2023.
8. The record shows, that on 13.04.2023, the petitioner made a request for accommodation, on the ground that a close member of his family had passed away on 08.04.2023. On this ground, the petitioner sought 30 days to file a reply.
9. In response thereto, on 15.04.2023, the respondents/revenue granted a short accommodation to the petitioner. The petitioner was advised to file a reply on or before 18.04.2023.
10. As noticed above, it appears that the petitioner was not able to file reply, which led to the impugned order being passed on 19.04.2023.
11. The death certificate of the relative has been placed on record by the petitioner. A copy of this document is marked as Annexure P5.
11.1 According to us, since there was bereavement in petitioner's family, the AO could have granted greater latitude to the petitioner. At times, ceremonies connected to obsequies take, if not more, at least two weeks.
12. Having regard to the aforesaid, we are of the view that the best way forward would be to set aside the impugned order dated 19.04.2023.
13. It is ordered accordingly.
14. The petitioner will file a reply within two weeks of receipt of a copy of the order passed today. The AO will, thereafter, pass a fresh order, having regard to the reply filed by the petitioner.
15. The AO will also grant personal hearing to the petitioner and/or his authorized representative.
16. The writ petition is disposed of in the aforesaid terms.
17. Consequently, pending application shall stand closed.
18. Parties will act based on the digitally signed copy of the order.
Courts may set aside orders when greater latitude should have been granted due to family bereavement, and may direct the filing of a fresh reply and grant a personal hearing.
The court has the discretion to set aside an assessment order and grant liberty to the Assessing Officer to pass a fresh order after considering the petitioner's response to the notice issued under S....
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
Violation of principles of natural justice and failure to adhere to the timeline given in the notice led to the setting aside of the impugned assessment orders.
Breach of principles of natural justice in assessment proceedings under the Income Tax Act, 1961.
Failure to inform the petitioner about the decision on their request for accommodation constituted a breach of principles of natural justice, warranting the setting aside of the assessment order and ....
The importance of granting a fair opportunity to be heard and considering relevant judicial precedents in assessment proceedings.
The central legal point established in the judgment is the requirement to adhere to principles of natural justice in assessment proceedings, and the consequences of a breach of such principles.
A personal hearing is essential in tax assessment procedures to ensure administrative fairness; failure to provide one invalidates the assessment orders.
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