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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Hasmukh Nanalal Parekh – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. procedural violations in tax assessment. (Para 4 , 5) |
| 2. importance of hearing in tax proceedings. (Para 6 , 7) |
| 3. ruling emphasizes need for fair hearing. (Para 8) |
JUDGMENT :
PRANAV TRIVEDI, J.
1. Heard learned advocate Mr. Anshul Jain for learned advocate Mr. Love Sharma for the petitioner and learned Senior Standing Counsel Mr. Varun Patel for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule for and on behalf of the respondent.
3. Having regard to the controversy arising in this petition which is in a narrow compass, with the consent of the learned advocates for the parties, the same is taken up for hearing.
4. By this petition under Article 226 of the Constitution of India, the petitioner has challenged and prayed for quashing and setting aside the impugned demand notice dated 31.3.2023 issued by the respondent No.2 (hereinafter referred to as ‘the respondent’ for short) under Section 156 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’ for short) as well as impugned order dated 31.3.2023 issued under Section 147 read with Section 144 of the Act as well as show-cause notice
Adherence to principles of natural justice is imperative in tax assessment proceedings.
The court ruled that an assessment order issued without adhering to principles of natural justice, specifically the right to be heard, is invalid and must be set aside.
Failure to consider submissions in an assessment order constitutes a breach of natural justice, necessitating a remand for fresh consideration.
The failure to provide a personal hearing constitutes a breach of natural justice, necessitating the quashing of the assessment order.
Assessment orders must adhere to principles of natural justice, including granting personal hearing as per statutory requirements.
Violation of the principle of natural justice in the assessment process warrants setting aside the assessment order and remanding the matter for a decision in accordance with law.
An assessment order under Section 148 is invalid if notice is not effectively served, violating principles of natural justice.
The court emphasized the necessity of adhering to principles of natural justice, particularly the right to a fair opportunity to respond to show-cause notices in tax assessments.
Procedural fairness and rules of natural justice are essential in administrative proceedings, and failure to adhere to these principles may result in the setting aside of orders and the direction for....
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