Tax Assessment Voided: Insufficient Reasoning Leads to Remand with Mandatory Personal Hearing and Document Submission Opportunity

HC found tax orders dated 13.03.2024 unsustainable due to lack of specific reasoning for rejecting petitioner's replies during assessment. The court set aside original orders, remanded matters for reconsideration, directed respondent to provide personal hearing, and allowed petitioner to submit additional documents within two weeks. Fresh orders must be issued within three months.

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Issues involved: Challenge to orders in original u/s 13.03.2024 for distinct assessment periods due to non-consideration of petitioner's reply.

Summary:
In the present case, the petitioner challenged orders in original dated 13.03.2024 for distinct assessment periods, contending that their replies were not duly considered. The petitioner had submitted separate replies for each defect identified during an inspection of their business premises. The impugned orders confirmed tax proposals without specifying reasons for rejecting the petitioner's replies, leading to the challenge.

The petitioner's counsel argued that while the replies were referred to in relation to each defect, the tax proposals were confirmed without proper justification for rejecting the replies. On the other hand, the respondent's counsel contended that principles of natural justice were followed through intimation, show cause notices, and personal hearing notices.

Upon perusal of the impugned orders, it was observed that the petitioner's replies were acknowledged but no specific findings were recorded for rejecting them. The lack of detailed consideration of the petitioner's explanations led to the unsustainability of the impugned orders. Consequently, the High Court set aside the original orders and remanded the matters for reconsideration.

The Court allowed the petitioner to submit additional documents within two weeks for reconsideration. The respondent was directed to provide a reasonable opportunity, including a personal hearing, and issue fresh orders within three months from the receipt of additional documents. The writ petitions were disposed of without costs, and connected miscellaneous petitions were closed accordingly.

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