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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Dar Housing Limited – Appellant
Versus
National E Assessment Centredelhi – Respondent
| Table of Content |
|---|
| 1. factual background regarding assessment order (Para 2) |
| 2. arguments regarding denial of personal hearing (Para 3 , 4 , 5) |
| 3. court's interpretation of section 144b(7) (Para 6 , 7) |
| 4. impugned order set aside for lack of hearing (Para 8) |
| 5. conclusion and directive for future hearings (Para 9 , 10) |
JUDGMENT
Manmohan, J.: (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the impugned assessment order dated 15th April, 2021 passed by the Respondents under Section 143(3) read with Sections 143(3A) & 143(3B) of Income Tax Act, 1961for the Assessment Year 2018-19 in the case of the Petitioner.
3. Learned counsel for the Petitioner states that the impugned assessment order has been passed without affording the petitioner due opportunity of being heard despite the Petitioner seeking a personal hearing.
4. He also states that a show cause notice dated 06th April, 2021 was issued to the Petitioner stating as to why the addition of Rs. 7,98,32,462/- pertaining to creditnotes and of Rs.5,32,00,000/- pertaining to interest on debentures should not be made in the ongoing assessment proceedings. He states that
Procedural fairness in tax assessment necessitates consideration of an assessee's request for a personal hearing under the Income Tax Act.
The failure to grant a personal hearing during assessments constitutes a violation of natural justice, mandating the setting aside of the impugned orders.
The court emphasized the obligation of the revenue to consider the request for a personal hearing and to frame standards, procedures, and processes for approving such requests under Section 144B(7) o....
The court upheld the necessity of granting a personal hearing under Section 144B(7) of the Income Tax Act, emphasizing that natural justice principles must be respected in assessment processes.
The central legal point established in the judgment is the requirement to provide an opportunity of personal hearing to the assessee as per the provisions of Section 144B (7) and the mandatory proced....
The court ruled that the failure to provide a personal hearing upon request in the faceless assessment process violated principles of natural justice, rendering the assessment order invalid.
A taxpayer's request for a personal hearing under Section 144B must be considered by the revenue authority, and failure to do so violates natural justice, rendering the assessment order null.
The court emphasized the importance of granting the petitioner an opportunity of hearing as required by Section 144B(7) of the Income Tax Act, and held that the failure to do so violated the principl....
Section 144B(7) mandates personal hearing if requested by the assessee, and failure to provide it invalidates the assessment order.
The court ruled that failure to provide a personal hearing in faceless assessment violated principles of natural justice, necessitating the setting aside of the assessment order and remanding the mat....
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