Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Ashok Jain – Appellant
Versus
Assessment Unit Income Tax Department New Delhi – Respondent
W.P.(C) 7825 of 2023
Decided On : 31-05-2023
Natural Justice - Income Tax - The court set aside the order passed under Section 148A(d) of the Income Tax Act, 1961 and the assessment order passed under Section 147 of the Act, as it found that principles of natural justice were breached. The court ordered the Assessing Officer to recommence the proceeding, issue notice to the petitioner for a personal hearing, and pass a speaking order.
Fact of the Case:
The writ petition concerned Assessment Year (AY) 2016-17. The petitioner alleged breach of natural justice and challenged the order passed under Section 148A(d) of the Income Tax Act, 1961.
Finding of the Court:
The court found that principles of natural justice were breached and set aside the impugned orders. It ordered the Assessing Officer to recommence the proceeding, issue notice to the petitioner for a personal hearing, and pass a speaking order.
Issues: Breach of natural justice, validity of orders under Section 148A(d) and Section 147 of the Income Tax Act, 1961.
Ratio Decidendi: The court held that the breach of natural justice warranted setting aside the impugned orders and directed the Assessing Officer to follow due process in recommencing the proceeding.
Final Decision: The court disposed of the writ petition by setting aside the impugned orders and ordering the Assessing Officer to recommence the proceeding, issue notice to the petitioner for a personal hearing, and pass a speaking order.
ORDER
CM APPL.30174/2023
1. Allowed, subject to the petitioner filing legible copies of the annexures, at least three days before the next date of hearing.
W.P.(C) 7825/2023 and CM APPL.30173/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Gaurav Gupta, learned senior standing counsel, who appears on behalf of the respondent/revenue, accepts notice.
3. Given the directions that we propose to pass, Mr Gupta says that 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.
3.1. Therefore, with the consent of the learned counsels for the parties, the writ petition is taken up for hearing and final disposal, at this stage itself.
4. This writ petition concerns Assessment Year (AY) 2016-17.
5. The substantive prayer made in the writ petition reads as follows:
"(A) Issue a writ, order or direction in the nature of Mandamus or Certiorari or any other appropriate writ against quashing of SCN u/s 148A(b) dated 18.05.2022, impugned order u/s 148A(d) dated 22.07.2022 and impugned order u/s 147 dated 19.04.2023 for the A.Y. 2016-17 and all other consequential proceedings."
6. The principal grievance of the petitioner is that not only were principles of natural justice breached, but that the order passed on 22.07.2022 under Section 148A(d) of the Income Tax Act, 1961 [in short, "the Act"] traverses beyond the allegations levelled against the petitioner in the notice dated 18.05.2022 issued under Section 148A(b) of the Act.
7. Mr Gupta, who appears on behalf of the respondent/revenue, cannot but accept that principles of natural justice have been breached.
8. Accordingly, in our view, the best way forward would be to set the clock back to the stage at which notice dated 18.05.2022 under Section 148A(b) of the Act is positioned.
8.1. It is ordered accordingly.
9. Consequently, the order dated 22.07.2022 passed under Section 148A(d) of the Act and the assessment order dated 19.04.2023 passed under Section 147 of the Act are set aside. The consequential notice issued under Section 148 of the Act, which is dated 22.07.2022, is also set aside.
9.1. The AO is, however, given liberty to recommence the proceeding. Before the AO recommences the proceeding, he will issue notice to the petitioner, according him and/or his authorised representative an opportunity of personal hearing.
9.2. For this purpose, the AO will issue notice indicating the date and time of the hearing.
10. Needless to add, the AO will pass a speaking order both insofar as the provisions of Section 148A(d) of the Act are concerned, and insofar as the assessment order is concerned.
11. The writ petition is disposed of in the aforesaid terms.
12. Pending application shall also stand closed.
13. Parties will act based on the digitally signed copy of the order.
Breach of natural justice warrants setting aside impugned orders and necessitates following due process in recommencing the proceeding.
The central legal point established in the judgment is the requirement to adhere to principles of natural justice, including providing a hearing to the petitioner before passing orders under the Inco....
The central legal point established in the judgment is that the failure to consider the petitioner's reply in the assessment proceedings amounted to a breach of principles of natural justice, leading....
Principles of natural justice must be adhered to in administrative proceedings, and failure to do so may result in the setting aside of orders and the requirement for a fair process.
The denial of personal hearing sought by the petitioner constituted a breach of principles of natural justice, leading to the setting aside of the order and notice.
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 ....
Violation of the right to fair hearing can vitiate orders and necessitate their setting aside and remand for fresh orders with a fair opportunity for the affected party to be heard.
Prevailing state of affairs clearly reflects that in absence of any effective system of accountability of erring officers, the harassment of the assessees and breach of principles of natural justice ....
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the order.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
