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IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Subodh Gupta - Appellant
Versus
Assistant Commissioner of Income Tax, Circle 28 (1) , Delhi & Anr. - Respondents
W.P.(C) 9471 of 2023 & CM APPL. 36180 of 2023 and W.P.(C) 9472 of 2023 & CM APPL. 36182 of 2023
Decided On : 01-09-2023
Natural Justice - Assessment Orders - The court set aside the assessment orders for the Assessment Years 2015-16 and 2016-17 due to the disruption of audio during the video conference, which resulted in ineffective hearing. The Assessing Officer was directed to pass fresh assessment orders after according a personal hearing to the petitioner and/or his authorized representative.
Fact of the Case:
The petitioner approached the court on the ground of breach of principles of natural justice due to disruption of audio during the video conference for personal hearing, which led to ineffective interaction with the Assessing Officer.
Finding of the Court:
The court found that the disruption of audio during the video conference resulted in ineffective hearing, and therefore, set aside the assessment orders for the respective assessment years.
Issues: Breach of principles of natural justice due to disruption of audio during the video conference for personal hearing.
Ratio Decidendi: The disruption of audio during the video conference led to ineffective interaction with the Assessing Officer, which violated the principles of natural justice.
Final Decision: The court set aside the assessment orders for the respective assessment years and directed the Assessing Officer to pass fresh assessment orders after according a personal hearing to the petitioner and/or his authorized representative.
JUDGMENT
Rajiv Shakdher, J. (Oral) - We have heard counsel for the parties at some length on 19.07.2023 and we have asked Mr Shlok Chandra, learned senior standing counsel, who appears on behalf of respondents/revenue, to obtain instructions in the matter.
2. For the sake of convenience, the relevant part of order dated 19.07.2023 is extracted hereafter:
"2. These writ petitions concern Assessment Year (AY) 2015-16 [WP(C) 9471/2023] and AY 2016-17 [WP(C) 9472/2023].
3. Dr Rakesh Gupta, learned counsel, who appears on behalf of the petitioner, says that in the above-captioned writ petitions, the petitioner has approached this court on a very limited ground, i.e., breach of principles of natural justice.
4. The record shows that two separate show cause notices of even date, i.e., 11.05.2023, were issued proposing variation of income.
5. A link was transmitted to the petitioner for personal hearing via video conferencing; fixed on 22.05.2023.
6. It is the petitioner's case that since the Assessing Officer (AO) did not log in till 01.39 p.m. he was issued a fresh link for 24.05.2023.
6.1 It is averred by the petitioner that, on 24.05.2023, the hearing was disrupted since the audio was absent during the video conference, and hence, interaction between the petitioner's authorized representative and the AO took place via the chat box.
6. It is in this context that assessment order dated 30.05.2023 is assailed in WP(C) 9471/2023, and likewise assessment order dated 31.05.2023 is challenged in WP(C) 9472/2023.
7. Mr Shlok Chandra, learned senior standing counsel, who appears on behalf of the respondents/revenue, will ascertain from the AO, the exact position in the backdrop of the assertions made by the petitioner.
8. List the matters on 19.07.2023."
3. On 09.08.2023, Mr Chandra sought further time to obtain instructions regarding the aspect that we had recorded on 19.07.2023.
4. Mr Chandra has returned with instructions. Mr Chandra states that the audio was indeed disrupted, and therefore effective hearing did not take place.
5. Having regard to the aforesaid, we are inclined to set aside the impugned assessment orders.
6. It is ordered accordingly.
7. Accordingly, assessment orders dated 30.05.2023 & 31.05.2023 passed in W.P. (C) 9471/2023 and 9472/2023 respectively are set aside.
8. However, the Assessing Officer (AO) will be at liberty to pass fresh assessment order after according personal hearing to the petitioner and/or his authorized representative.
9. The AO in this regard will issue notice to the petitioner indicating therein date and time of the hearing.
10. The above-captioned writ petitions are disposed of, in the aforesaid terms.
11. Pending interlocutory applications stand disposed of.
12. Accordingly, interim order dated 09.08.2023 stands vacated.
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 ....
The assessment order was set aside due to a breach of natural justice, emphasizing the need for a fair hearing and consideration of all relevant submissions.
The court established that adherence to natural justice is essential, particularly the right to a fair hearing, which was not upheld in this case.
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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.
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