Court sets aside order under Income Tax Act for non-compliance with hearing opportunity requirement.

The Court set aside the impugned order passed under Section 147 of the Income Tax Act, 1961 for the assessment year 2018-19 due to non-compliance with Section 144B(6)(vii) which mandates providing an opportunity of hearing. The matter was remanded back to the assessing officer for a fresh order ensuring compliance within three months. The writ petition, numbered as WPO 890 of 2023, was disposed of with these directions.

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Issues involved:
The issue involved in this case is the challenge to an order passed under Section 147 of the Income Tax Act, 1961 for the assessment year 2018-19, on the grounds of non-compliance with Section 144B(6)(vii) of the Act, which requires providing an opportunity of hearing before passing such an order.

Judgment Summary:

Violation of Section 144B(6)(vii) of the Income Tax Act:
The petitioner challenged the impugned order dated 10th March, 2023, passed under Section 147 of the Income Tax Act, 1961, for the assessment year 2018-19, on the basis that it was passed without providing any opportunity of hearing as mandated by Section 144B(6)(vii) of the Act. The respondent Income Tax Authority, upon verification, admitted that the order was indeed passed without complying with the formalities of providing an opportunity of hearing to the petitioner, as required by the said statutory provision. The Court noted that while it is generally reluctant to interfere with orders under Section 143(3) or Section 147 of the Act, being appealable orders, in this case, the admitted noncompliance with the statutory provision necessitated intervention. Consequently, the impugned order dated 10th March, 2023, passed under Section 147 of the Act, was set aside, and the matter was remanded back to the assessing officer for the fresh order to be passed after ensuring compliance with the formalities of Section 144B(6)(vii) of the Act, within a period of three months from the date of the judgment.

Disposition of the Writ Petition:
The Court disposed of the writ petition, numbered as WPO 890 of 2023, with the above observations and directions. The learned advocates representing the parties were directed to communicate this order immediately to their respective clients.

This summary highlights the key issues involved in the judgment and provides a detailed overview of the Court's decision and directions regarding the violation of Section 144B(6)(vii) of the Income Tax Act and the subsequent remand of the matter for compliance with the statutory provisions.

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