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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Gayatri Cotton Private Limited – Appellant
Versus
ITO Ward – Respondent
| Table of Content |
|---|
| 1. observations on violation of natural justice principles. (Para 4) |
| 2. argument regarding the lack of communication in adjournment. (Para 6 , 7) |
| 3. final decision to quash the assessment order. (Para 8) |
JUDGMENT :
PRANAV TRIVEDI, J.
1. Heard learned advocate Mr. S.N. Divatia 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 involved in this petition, with the consent of the learned advocates for the respective parties, the matter is taken up for final hearing.
4. By way of present petition under Article 226 of the Constitution of India, the petitioner challenges the validity of the Assessment Order passed by the respondent under Section 143 (3) read with Section 144B of the Income Tax Act, 1961 (For short ‘the Act’) on 22.3.2024 for the Assessment Year 2022-23 whereby the respondent has assessed the total income of the petitioner at Rs.49,54,76,100/-.
5. Brief facts giving rise to present petition are as under:
5.1 The Petitioner is a duly incorporated
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 court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
Adherence to principles of natural justice is imperative in tax assessment proceedings.
The assessment order was set aside due to breach of natural justice, specifically failure to consider the petitioner's objections filed before the order was made.
The Court upheld the violation of natural justice in income tax assessment procedures, invalidating the assessment order due to improper acknowledgment of the petitioner's adjournment request.
Proper procedural safeguards must be adhered to in assessment proceedings; however, sufficient opportunities for response mitigate claims of natural justice violations.
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