Court quashes assessment order due to lack of personal hearing, citing violation of natural justice principles.

The court quashed the assessment order for lack of personal hearing, citing a violation of natural justice principles. Relying on precedent, the court emphasized that granting a personal hearing is mandatory under Section 144B(7)(vii) when civil consequences are at stake. The matter was remanded for a fresh order after providing the petitioner with a personal hearing, with all parties' rights and contentions left open for further proceedings.

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Issues Involved:
Challenging assessment order under Section 147 read with Section 144B of the Income Tax Act, 1961 for lack of personal hearing.

Analysis:
The petitioner filed a writ petition challenging the Assessment Order dated 28th March, 2022, under Section 147 read with Section 144B of the Income Tax Act, 1961, citing a violation of the principle of natural justice due to the absence of a personal hearing despite a request made. The petitioner relied on the judgment in Sanjay Aggarwal vs. National Faceless Assessment Centre Delhi, where the final assessment order was set aside for not providing a personal hearing to the assessee.

Upon hearing both parties, the court noted that the issue was settled in the case of Bharat Aluminium Company Ltd. vs. Union of India & Ors., where it was held that the discretion to grant a personal hearing under Section 144B(7)(vii) should be construed as mandatory when civil consequences are involved. The court emphasized that the requirement of providing a reasonable opportunity for personal hearing is mandatory, and any classification between matters involving disputed questions of fact and questions of law is not legally sustainable.

Consequently, the court quashed the impugned assessment order dated 28th March, 2022, and remanded the matter back to the respondent for passing a fresh order in compliance with the law after granting a personal hearing to the petitioner. The court disposed of the writ petition and applications, leaving the rights and contentions of all parties open for further proceedings.

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