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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Bharat Aluminium Company Ltd. – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. challenge to tax assessment order (Para 1) |
| 2. violation of procedural fairness in tax assessment (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 3. discretion in granting personal hearings in tax cases (Para 8 , 9 , 10) |
| 4. importance of personal hearing in faceless assessments (Para 12 , 13 , 14 , 15) |
| 5. mandatory nature of personal hearing under section 144b (Para 16 , 17 , 18 , 19 , 20 , 21) |
| 6. assessee's right to personal hearing upheld (Para 22 , 23 , 24) |
| 7. order to set aside and remand the assessment (Para 26) |
JUDGMENT
Manmohan, J.
1. Present writ petition has been filed by the petitioner challenging the action of respondent No.3 in passing the impugned final assessment order dated 27th November, 2021 under Section 143 (3) of the INCOME TAX ACT , 1961 [for short `the Act'] and the impugned notice dated 27th November, 2021 under Section 156 of the Act for Assessment Year 2018-19.
ARGUMENTS ON BEHALF OF THE PETITIONER
2. Mr. Arvind Datar, learned senior counsel for the petitioner stated that the impugned orders have been passed arbitrarily, without following the principles of natural justice and in gross violation of the scheme of faceless assessment under Section 144B of the Act,
The right to personal hearing in faceless assessments under Section 144B of the Income Tax Act is mandatory and must be granted when requested, reinforcing adherence to principles of natural justice.
Issuance of Show Cause Notice, mentioning proposed additions under Section 144B(xvi), is a mandatory requirement and any assessment order passed without issuance of such Show Cause Notice is bad in l....
Taxation - Faceless Assessment System/e-Assessment - It is open to authorities to carry forward process in accordance with section 144B of Act, 1961 by giving opportunity of hearing to petitioner.
The court held that failure to provide a personal hearing as mandated by Section 144B of the Income Tax Act renders the assessment order invalid, violating principles of natural justice.
The court established that failure to provide a personal hearing in tax assessments violates natural justice, necessitating the quashing of the assessment order.
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....
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