Back
DELHI HIGH COURT
RAJIV SHAKDHER, TARA VITASTA GANJU
Lemon Tree Hotels Ltd. – Appellant
Versus
Assistant Commissioner of Income Tax – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM No.55647/2022
1. Allowed, subject to the petitioner filing legible copies of annexures, at least three days before the next date of hearing.
W.P.(C) 17457/2022&CM APPL. 55646/2022[Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Abhishek Maratha accepts notice on behalf of the respondents/revenue.
3. In view of the order that we intend to pass, Mr Maratha says that he does not wish to file a counter-affidavit at this juncture.
4. Thus, with the consent of learned counsel for the parties, the writ petition is taken up for personal hearing and final disposal, at this stage itself.
5. This writ petition is directed against the notice dated 30.06.2021 issued under Section 148 of the Income Tax Act, 1961 [in short "Act"].
In addition thereto, challenge is also laid to the letter/notice dated 02.06.2022, the order dated 30.07.2022 passed under Section 148A(d) of the Act, and lastly the consequent notice of even date i.e., 30.07.2022 issued under Section 148 of the Act.
6. To be noted, the instant writ petition concerns Assessment Year (AY) 20
A personal hearing is essential in tax assessment procedures to ensure administrative fairness; failure to provide one invalidates the assessment orders.
Failure to grant a personal hearing by the Assessing Officer violates principles of natural justice, necessitating the annulment of the assessment order.
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.
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.
The importance of factual accuracy in the Assessing Officer's assumptions and the requirement to grant a fair opportunity for a personal hearing influenced the court's decision.
Grant of personal hearing is a mandatory requirement under Section 144B(6)(vii) of the Income Tax Act, and failure to provide such a hearing can result in the setting aside of the assessment order.
Notices issued under updated provisions of the Income Tax Act cannot stand when the initial notice was issued under the previous provisions and is valid.
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
Breach of principles of natural justice in assessment proceedings under the Income Tax Act, 1961.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
