Tax liabilities cannot be altered without providing the affected party with notice and an opportunity to be heard.

JUDGMENT

The petitioner has approached this Court with the following prayers:

“i) Call for records leading to Ext.P2&P3 and quash the same by issuance of a writ of certiorari or any other appropriate writ, direction or order found fir and proper by this Honourable Court.

ii) Issue any appropriate writ, direction or order found fir and proper by this Honourable Court on the facts and in the circumstances of the case.”

2. The learned counsel for the petitioner submits that, the petitioner has got every right to challenge Ext.P1 assessment order 2009-2010 and according to the petitioner, he has filed an appeal before the Appellate Authority today. It is also stated that, there is every chance for intercepting the assessment order already passed and as such, enhancement of the liability by way of unilateral compounding slapped on the petitioner as per the impugned proceedings, that too without serving any notice of hearing, is not correct or sustainable and hence the challenge.

3. Heard the learned Government Pleader as well, who W.P.C.No.6719 OF 2014 2 submits that, Ext.P1 order was passed pursuant to an inspection and the incriminating materials collected at the time of inspection. The said proceedings were finalised after giving an opportunity of hearing to the petitioner and the offence was compounded by the petitioner. This being the position, the higher tax satisfied by the petitioner in respect of the concerned assessment year came to be the highest one, during the 'previous three assessment years', which in turn was taken as the base figure for computing the tax liability in respect of the relevant assessment year, ie. 2010-2012 as per Exts.P2&P3 orders. Admittedly, no notice was issued to the petitioner before varying/enhancing the liability as per Exts.P2&P3. It also goes without saying that, if Ext.P1 order passed by the 1st respondent came to be intercepted by the Appellate Authority, the consequential proceedings by way of Exts.P2&P3 will naturally undergo change. This being the position, it was very much necessary to have given an opportunity to the petitioner to explain the facts and figures by issuing proper notice, if at all any assessment was to be made, in respect of the concerned W.P.C.No.6719 OF 2014 3 assessment years.

4. In the said circumstances, this Court finds that the matter has to be re-considered by the concerned authority in respect of the assessment years 2010-2013.

Accordingly, Exts.P2&P3 are set aside and the 1st respondent is set at liberty to issue proper notice to the petitioner as to the proposed cause of action and pass appropriate orders after giving an opportunity of hearing. The proceedings as above shall be finalised at the earliest, at any rate, within 'two months'

from the date of receipt of a copy of this judgment.

Petitioner shall produce a copy of this judgment, along with a copy of the writ petition, before the concerned respondent, for further steps.

The writ petition is disposed of.

P.R. RAMACHANDRA MENON, JUDGE sp