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IN THE HIGH COURT OF DELHI
Manmohan, Navin Chawla, JJ.
Rajesh Kumar - Appellant
Versus
Commissioner of Income Tax - Respondent
W.P.(C) 6670 of 2020 & C.M. No. 23186 of 2020
Decided On : 23-08-2021
| Table of Content |
|---|
| 1. judgment process and absence of petitioner (Para 2 , 5) |
| 2. challenge to tax order on limitations (Para 3) |
| 3. itat restores appeal for fresh hearing (Para 4) |
| 4. order disposal and notification instructions (Para 6 , 7) |
JUDGMENT
Manmohan, J. (Oral)--The petition has been heardby way of video conferencing.
2. The matter has been taken up for hearing today as 20th August, 2021 was declared a holiday.
3. Present writ petition has been filed challenging the order dated 11th March, 2020 passed by the respondent - Commissioner of Income Tax under section 147 read with section 144 of the Income Tax Act, 1961 dismissing the appeal filed by the petitioner against demand notice dated 17th July, 2019 for the Assessment Year 2007-2008 on the ground of limitation and in the alternative, seeking a direction to the respondent - Commissioner of Income Tax to adjudicate de novo on merits the application filed by the petitioner for the Assessment Year 2007-2008.
4. Learned counsel for the respondent states that the petitioner, after filing the present petition, had also filed an appeal before the ITAT impugning the same order dated 11th March,2020. He states that ITAT has allowed the petitioner's appeal vide judgment and order dated 23rd June, 2021. The relevant portion of the order dated 23rd June, 2021 passed by the ITAT is reproduced hereinbelow:
"10. Considering the facts of the case in the light of the aforestated findings of the Hon'ble Supreme Court (supra) we restore the entire appeal to the file of the AO. The AO is directed to issue notice to all the legal heirs of the deceased assessee and decide afresh as per the provisions of the law after giving a reasonable and sufficient opportunity of being heard to the assessee."
5. On the last date of hearing,none was present for the petitioner. Even today, none is present for the petitioner.
6. Keeping in view the aforesaid, the present writ petition alongwith pending application is disposed of as satisfied.
7. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail
The court upheld administrative discretion of tax authorities and directed prompt resolution of appeals, emphasizing the separation of case merits from procedural timelines.
Assessment orders must uphold principles of natural justice, ensuring affected parties have a reasonable opportunity to respond, particularly in cases involving technical barriers to communication.
Failure to provide a personal hearing as required under Section 144B of the Income Tax Act violates principles of natural justice, rendering the assessment order invalid.
The court has the discretion to direct the Commissioner of Income Tax (Appeals) to decide an appeal within a specified timeframe.
The court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
Violation of principles of natural justice due to failure to provide a reasonable opportunity to file a reply to the Show Cause Notice and draft assessment order.
The failure to grant a personal hearing in complex assessments violates principles of natural justice as mandated by the Income Tax Act.
The main legal point established in the judgment is that the failure to dispose of the objections of the assessee prior to issuing a reassessment notice and the requirement of a valid approval for re....
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
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