Court Remands Tax Assessment, Emphasizes Right to Hearing & Order Upload

The Court set aside the Assessment Order for lack of opportunity for a personal hearing, emphasizing the obligation on revenue authorities to consider such requests. The matter was remanded to the Assessing Officer for a hearing via Video Conferencing and subsequent order issuance in compliance with the law. The Court directed immediate order upload on the website and email forwarding to the petitioner's counsel.

---

---

Issues:
Challenge to Assessment Order based on violation of natural justice principles and lack of opportunity for a personal hearing.

Analysis:
The petitioner challenged the Assessment Order dated 21st April 2021, alleging a violation of the principle of natural justice due to the absence of a Video Conferencing or oral hearing opportunity. The petitioner emphasized that this lack of opportunity for a personal hearing before the finalization of the tax assessment resulted in serious injustice. The petitioner relied on relevant statutory norms and Central Board of Direct Taxes (CBDT) instructions to support their claim for a fair opportunity of Video Conferencing or oral hearing.

The respondent argued that there is no vested right for the petitioner to claim a personal hearing, citing the use of the term 'may' instead of 'shall' in clause (vii) of sub-section (7) of Section 144B. However, the Court, after hearing both parties, interpreted Section 144B (7) to provide for a personal hearing in cases where a variation is proposed in the draft assessment order. The Court referred to a previous judgment in Sanjay Aggarwal v. National Faceless Assessment Centre Delhi, which emphasized the obligation on the revenue authority to consider and approve requests for a personal hearing.

Based on the interpretation of the law and previous judgments, the Court set aside the impugned assessment order dated 21st April 2021 and remanded the matter back to the Assessing Officer. The Assessing Officer was directed to grant the petitioner an opportunity for a hearing through Video Conferencing and then pass an order in accordance with the law. The Court disposed of the writ petition with this direction, ordering the immediate upload of the order on the website and forwarding a copy to the petitioner's counsel via email.

---