2023 (9) TMI 109 - HC - Income Tax

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 ... Validity of order passed u/s 147 - violation of Section 144B(6)(vii) by not providing any opportunity of hearing before passing the aforesaid impugned order u/s 147 - HELD THAT:- Respondents on instruction submits that from record it appears that the aforesaid impugned order was passed without compliance of the formalities of providing opportunity of hearing to the petitioner as per Section 144B(6)(vii) of the aforesaid Act. Though this Court is very reluctant to interfere with any order under Section 143(3) or Section 147 of the Act since the same is an appealable order but in this case admittedly the respondent Income Tax Authority has acted contrary to and in noncompliance of statutory provision of law and in view of this admitted legal and factual position, the aforesaid impugned order passed u/s 147 is set aside and the matter is remanded back to the assessing officer concerned to pass fresh order after compliance of the formalities of the aforesaid provision of Section 144B(6)(vii) of the aforesaid Act, within a period of three months from date. 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.