2023 (7) TMI 86 - HC - Income Tax

High Court overturns orders citing fair hearing violation under Income Tax Act, 1961

The High Court set aside the impugned notice and orders due to the acknowledged violation of the right to a fair hearing in passing orders under sections ... Validity of reopening of assessment - adjournment request rejected - Violation of natural justice - Petitioner sought adjournment for 15 days itself on “adjournment request window on e-portal”; but ignoring the adjournment request respondent no. 1 completed the assessment, observing that the petitioner was provided personal hearing through video-conferencing - HELD THAT:- Revenue, in all fairness concedes that the above mentioned violation of right to fair hearing has vitiated the impugned orders. Under these circumstances, the impugned notice and orders are set aside and matter is remanded to the Assessing Officer to pass fresh orders after affording a fair opportunity to the petitioner or his authorized representative to be heard. Issues involved: Violation of principles of natural justice in passing orders u/s 147, 148, and 148A(d) of the Income Tax Act, 1961 for Assessment Year 2014-15.Summary:Violation of Principles of Natural Justice:The petitioner challenged orders passed u/s 147, 148, and 148A(d) of the Income Tax Act, 1961, for the Assessment Year 2014-15, alleging violation of principles of natural justice. The petitioner contended that the impugned order was passed without affording a fair opportunity for a response, leading to a gross violation of the right to a fair hearing. Despite the petitioner's adjournment request, the assessment was completed without considering the request, claiming that the petitioner did not provide any response or evidence. The respondent acknowledged the violation of the right to a fair hearing, conceding that it has vitiated the impugned orders.Judgment and Remand:In light of the acknowledged violation of the right to a fair hearing, the High Court set aside the impugned notice and orders. The matter was remanded to the Assessing Officer for fresh orders, emphasizing the need to provide a fair opportunity for the petitioner or their authorized representative to be heard. Consequently, the writ petition and the application were disposed of, ensuring compliance with principles of natural justice in the proceedings.