Appeal Allowed: Officer Violated Natural Justice by Denying Hearing Before Reopening 2019-20 Tax Assessment.

The HC allowed the appeal, finding that the assessing officer violated the principles of natural justice by failing to provide a personal hearing before reopening the assessment under Section 148A(d) of the Income Tax Act for the 2019-20 assessment year. The court directed that the order be treated as a notice under Section 148A(b) and required the assessing officer to grant a personal hearing, allowing the appellant to file further objections and documents. The appellant has 30 days to respond from the receipt of the court's order, ensuring a fair opportunity to present their case.

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Issues involved:
The judgment addresses the violation of principles of natural justice in an order passed by the assessing officer under Section 148A(d) of the Income Tax Act, 1961 for the assessment year 2019-20.

Details of the Judgment:

Issue 1: Violation of Principles of Natural Justice
The appellant challenged the order passed by the assessing officer on the grounds of not being granted an opportunity of personal hearing. The assessing officer had provided an opportunity of being heard as per Section 148A(b) of the Act by issuing a notice dated 27.3.23 calling for a reply along with supportive documents. However, the notice did not include a provision for a personal hearing. The appellant responded to the notice by denying the allegations and requesting the documents relied upon by the department. Subsequently, another notice was issued enclosing certain information, to which the appellant responded by providing relevant documents and denying any bogus purchases. The High Court found that the assessing officer had violated the principles of natural justice by not granting a personal hearing, as required by the statute before reopening an assessment. Therefore, the order was directed to be treated as a notice under Section 148A(b) of the Act, and the appellant was given the opportunity to file further objections and supportive documents. The assessing officer was instructed to fix a date for a personal hearing to hear the authorized representative of the appellant and pass fresh orders in accordance with the law.

Issue 2: Opportunity for Personal Hearing
The High Court emphasized the importance of providing the appellant with an opportunity for a personal hearing as part of the principles of natural justice. It was noted that the appellant's reply submitted on 12.4.23 had not been adequately considered by the assessing officer, despite being referred to in the order dated 13.4.23. The Court highlighted that the notice dated 27.3.23 did not fulfill the requirement of a personal hearing, leading to a violation of natural justice. Therefore, the Court directed the assessing officer to allow the appellant to present their case in a personal hearing and submit additional documents to support their position. The appellant was given 30 days to file their reply from the date of receipt of the court's order.

Conclusion:
The High Court allowed the appeal, emphasizing the need for adherence to principles of natural justice in proceedings under the Income Tax Act. The judgment underscored the importance of providing an opportunity for a personal hearing and submitting relevant documents to support one's case in tax assessments.

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