Faceless assessment hearing rights upheld: denial of requested video-conference hearing vitiated the assessment and required fresh adjudication.

In faceless assessment proceedings, where the taxpayer requested a video-conference hearing, refusal of that hearing was held contrary to Section 144B(9) of the Income-tax Act, 1961 and a breach of natural justice. The assessing authority could not decline the requested opportunity on the ground that no further submission was required. The assessment order was quashed and set aside, and the matter was restored to the stage of the hearing request for fresh adjudication after granting the opportunity of hearing, without any decision on the merits.

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Issues: Whether the assessment order was liable to be quashed for denial of the requested opportunity of hearing through video conference in the faceless assessment proceedings.

Analysis: The requested personal hearing through video conference was not afforded, and the assessing authority proceeded on the basis that no further submission was necessary. Denial of the hearing opportunity in a case where such opportunity was sought was treated as contrary to the statutory scheme under Section 144B(9) of the Income-tax Act, 1961 and as a breach of natural justice.

Conclusion: The assessment order was quashed and set aside, and the matter was restored to the stage at which the hearing request had been made for fresh adjudication after granting the opportunity of hearing.

Final Conclusion: The petitioner succeeded on the procedural challenge, and the assessment was required to be reconsidered after compliance with the hearing requirement, without any adjudication on the merits.

Ratio Decidendi: Where the statute provides for an opportunity of hearing and a request for such hearing is made, the assessing authority cannot unilaterally refuse it on the ground that no new submission is required; denial of the requested hearing vitiates the assessment on principles of natural justice.

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