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RAJIV SHAKDHER, GIRISH KATHPALIA
Rajib Saha – Appellant
Versus
Income Tax Officer, Ward 10(1) – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM APPL. 31209/2023
1. Allowed, subject to just exceptions.
W.P.(C) 8109/2023 and CM APPL. 31208/2023[Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Shlok Chandra, learned senior standing counsel, who appears on behalf of the respondents/revenue, accepts notice.
3. Given the directions that we propose to pass, Mr Chandra 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 learned counsel for the parties, the writ petition is taken up for hearing and final disposal, at this stage itself.
4. The petitioner, via this writ petition has assailed the notice dated 25.04.2023 issued under Section 179 of the Income Tax Act, 1961 [in short, "Act"]. This notice seeks to recover the demand which is outstanding against a company going by the name Gisil Designs Pvt. Ltd. (GDPL) concerning Assessment Year (AY) 2008-09. It is not disputed, that the petitioner is one of the Directors of GDPL.
5. Mr Satyen Sethi, learned counsel, who appears on behalf of the petitioner, says tha
The court emphasized the right to adjudication of the show-cause notice and provided a safeguard against adverse decisions under the Income Tax Act, 1961.
The court emphasized the importance of considering the petitioner's reply and according a personal hearing before passing an assessment order under the Income Tax Act, 1961.
Failure to adhere to the directions in the Standard Operating Procedure (SOP) for Assessment Unit, which led to the quashing of the impugned notices and order.
Compliance with procedural requirements and the right to a fair hearing are essential in proceedings under the Income Tax Act, 1961.
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.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
The court emphasized the importance of the Commissioner of Income Tax to dispose of the petitioner's application and accord a personal hearing, and allowed filing of written submissions. It also prov....
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.
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