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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Modi Overseas – Appellant
Versus
Income Tax Officer Ward 47(1) Delhi & Anr. – Respondents
W.P.(C) 8118 of 2023 & CM Nos.31230-31 of 2023
Decided On : 01-06-2023
Natural Justice - Income Tax - The court set aside the order and notice issued under Section 148A(d) and Section 148 of the Income Tax Act, 1961, due to the breach of principles of natural justice. The Assessing Officer was given liberty to pass a fresh order after taking into account the reply filed by the petitioner and was directed to accord personal hearing to the authorized representative of the petitioner.
Fact of the Case:
The writ petition concerned the challenge to the order and notice issued under Section 148A(d) and Section 148 of the Income Tax Act, 1961 for Assessment Year 2019-20. The petitioner alleged that although personal hearing was sought, it was not granted, leading to a breach of principles of natural justice.
Finding of the Court:
The court set aside the impugned order and notice, and directed the Assessing Officer to pass a fresh order after considering the petitioner's reply and to accord personal hearing to the authorized representative of the petitioner. The writ petition was disposed of accordingly.
Issues: Breach of principles of natural justice due to the denial of personal hearing sought by the petitioner.
Ratio Decidendi: The court emphasized the importance of principles of natural justice and held that the denial of personal hearing constituted a breach of such principles, leading to the setting aside of the order and notice.
Final Decision: The impugned order and notice were set aside, and the Assessing Officer was directed to pass a fresh order after considering the petitioner's reply and according personal hearing to the authorized representative of the petitioner. The writ petition was disposed of accordingly.
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM No.31231/2023
1. Allowed, subject to just exceptions.
W.P.(C) 8118/2023 & CM No.31230/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Shlok Chandra, learned standing counsel accepts notice on behalf of the respondents/revenue.
3. Given the direction that we propose to issue, Mr Shlok Chandra says, that he does not wish to file a counter-affidavit, 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 matter is taken up for hearing and final disposal, at this stage itself.
4. This writ petition concerns Assessment Year (AY) 2019-20.
5. The petitioner has laid a challenge to the order dated 06.04.2023 passed under Section 148A(d) of the Income Tax Act, 1961 [in short, "Act"].
5.1. In addition thereto, challenge is also laid to the consequential notice of even date i.e., 06.04.2023 issued under Section 148 of the Act.
6. The short ground, on which the petitioner challenges the aforementioned order and notice is, that although personal hearing was sought, the same was not granted.
7. Given this position, Mr Chandra cannot but accept, that there has been a breach of principles of natural justice.
8. Accordingly, the impugned order and notice are set aside.
9. The Assessing Officer (AO) is, however, given liberty to pass a fresh order, after taking into account the reply filed by the petitioner.
10. The AO will accord personal hearing to the authorized representative of the petitioner.
10.1. For this purpose, the AO will issue a notice, indicating the date and time of hearing.
11. Needless to add, the AO will pass a speaking order; a copy of which will be furnished to the petitioner.
12. The writ petition is disposed of in the aforesaid terms.
13. Consequently, pending application shall stand closed.
14. Parties will act based on the digitally signed copy of the order.
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.
Breach of principles of natural justice in assessment proceedings under the Income Tax Act, 1961.
A personal hearing is essential in tax assessment procedures to ensure administrative fairness; failure to provide one invalidates the assessment orders.
The central legal point established in the judgment is the statutory right of the petitioner to a personal hearing under Section 144B(7)(vii) of the Income Tax Act, 1961, and the requirement for the ....
Failure to grant a personal hearing by the Assessing Officer violates principles of natural justice, necessitating the annulment of the assessment order.
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....
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
Compliance with procedural requirements and the right to a fair hearing are essential in proceedings under the Income Tax Act, 1961.
Denial of a personal hearing in income assessment cases under Section 144B(6)(vii) violates natural justice, necessitating the assessment order's cancellation.
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....
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