Court sets aside order, remands for fresh consideration, emphasizing fair hearing, procedural compliance

The Court granted the Writ Petition, setting aside the impugned order and remanding the case for fresh consideration by the respondent. The Court emphasized the necessity of adhering to legal procedures, providing a fair opportunity of hearing to the petitioner, and ensuring compliance with the principles of natural justice.

---

---

Issues:
Challenge to order dated 20.3.2013 in PAN/GIR No.AABCG3714B for Assessment Year 2005-06.

Analysis:
The petitioner, a Real Estate Company, disputed an order by the respondent regarding the Assessment Year 2005-06, seeking to quash it. The petitioner's main argument was that no profits or income accrued from a property sale transaction funded by M/s. Wescare (India) Ltd., hence no tax liability existed. Despite maintaining complete documentation and following banking procedures, the petitioner received a notice of re-assessment under Section 148 of the I.T. Act, leading to a series of events including a notice under Section 143(2) for clarifications. However, due to errors in communication and timing, the petitioner was deprived of a fair opportunity to respond before the assessment was completed. The petitioner contended that the order was passed without granting a proper hearing, violating principles of natural justice and the provisions of the I.T. Act.

The respondent, on the other hand, argued that they issued a notice under Section 143(2) on 7.3.2013 for a hearing on 14.3.2013, but due to an oversight, the notice was dispatched late, leading to a delay in the petitioner's receipt of the notice. The respondent claimed that the mistake was unintentional. The Court noted that the delay in serving the notice denied the petitioner a fair opportunity to be heard before the assessment was concluded, which is a violation of natural justice. The authority is obligated to provide the assessee with a chance to present their case before making a decision. Therefore, the Court set aside the impugned order and remanded the matter back to the respondent for fresh consideration, emphasizing the importance of following due process and affording the petitioner a proper hearing as required by law.

In conclusion, the Court granted the Writ Petition, setting aside the impugned order and remanding the case for fresh consideration by the respondent. The Court highlighted the necessity of adhering to legal procedures, providing a fair opportunity of hearing to the petitioner, and ensuring compliance with the principles of natural justice.

---