High Court sets aside order under Income Tax Act for Assessment Year 2015-2016, emphasizes right to personal hearing

The High Court set aside the order and notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-2016, as the petitioner was not granted a personal hearing before the order was passed. The matter was remitted to the assessing officer for a fresh assessment, with directions to provide a personal hearing to the petitioner's authorized representative. The court emphasized that all defences would be available to the petitioner/assessee. The writ petition was disposed of accordingly, highlighting the importance of procedural fairness and the right to a personal hearing in tax assessment matters.

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Issues:
Challenging notice under Section 148 of the Income Tax Act, 1961; Personal hearing not granted before passing the order under Section 148 A (d); Setting aside the order and notice issued under Section 148 of the Act; Remitting the matter to the assessing officer for a de novo exercise; Granting a personal hearing to the authorized representative of the petitioner; Issuing a notice for the hearing; Availability of all defences to the petitioner/assessee.

Analysis:
The High Court judgment pertains to a writ petition challenging a notice issued under Section 148 of the Income Tax Act, 1961, for Assessment Year 2015-2016. The petitioner requested a personal hearing in response to a show-cause notice but was not granted one before the order under Section 148 A (d) was passed. The court noted this deficiency and set aside the order dated 30.07.2022 passed under Section 148 A (d) and the consequential notice issued under Section 148 of the Act.

The court remitted the matter to the assessing officer for a de novo exercise and directed the officer to grant a personal hearing to the authorized representative of the petitioner. The assessing officer was instructed to issue a notice specifying the date and time of the hearing. The judgment emphasized that all defences would be available to the petitioner/assessee, citing the case of Union of India v. Ashish Aggarwal (2022 SCC OnLine SC 543).

In conclusion, the writ petition was disposed of with the aforementioned directions. The pending application was closed, and the parties were instructed to act based on the digitally signed copy of the order. The judgment underscores the importance of procedural fairness and the right to a personal hearing in matters concerning tax assessments under the Income Tax Act, ensuring that all defences are duly considered in the process.

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