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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Mukeshbhai Babarbhai Desai – Appellant
Versus
Income Tax Department Assessment Unit National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. the law regarding notice under section 148 and assessment procedures. (Para 4 , 5) |
| 2. arguments on the principles of natural justice in assessment proceedings. (Para 6 , 7) |
| 3. court's observations on procedural compliance and the necessity for fair hearings. (Para 8 , 9 , 10) |
| 4. the court's decision to quash and remand for compliance with procedures. (Para 11) |
JUDGMENT :
PRANAV TRIVEDI, J.
1. Heard learned advocate Mr. Sudhir Mehta for for the petitioner and learned Senior Standing Counsel Ms. Maithili Mehta for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Ms. Maithili Mehta, waives service of notice of rule for and on behalf of the respondent.
3. Having regard to the controversy involved in this petition, which is in a narrow compass and with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing.
4. By this petition under Article 226/227 of the Constitution of India, the petitioner has challenged and prayed for quashing and setting aside of the impugned notice dated 29.7.2022 under Section 148 of the Income Tax Act, 1961 (for short ‘the Act’) and consequential Assessment Order dated 19.5
Assessment orders must adhere to principles of natural justice, including granting personal hearing as per statutory requirements.
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 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 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....
The central legal point established in the judgment is the mandatory nature of affording a personal hearing in case of a proposed variation in the assessment order, as provided in Section 144B(7) of ....
Violation of Section 144B of the Income Tax Act and principles of natural justice.
Taxation - Assessment order - Demand Notice - Section 144B (7) mandatorily provides for issuance of a prior show cause notice and draft assessment order before issuing the impugned assessment order.
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.
The failure to grant a personal hearing during assessments constitutes a violation of natural justice, mandating the setting aside of the impugned orders.
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