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Tax Assessment Challenge Overturned: Authority Ordered to Reconsider Case with Fair Hearing and Procedural Safeguards HC allowed the writ petition challenging a tax assessment order. The court set aside the original order, directing the tax authority to reconsider the ...
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Tax Assessment Challenge Overturned: Authority Ordered to Reconsider Case with Fair Hearing and Procedural Safeguards
HC allowed the writ petition challenging a tax assessment order. The court set aside the original order, directing the tax authority to reconsider the case, provide a personal hearing, and issue a fresh order. The petitioner must deposit 10% of the disputed tax demand and submit a reply to the show cause notice within three weeks. Bank attachment was lifted, and further proceedings were restrained.
Issues: Assessment order challenged on grounds of documents not considered and tax proposal confirmed on a different ground. Claim of non-receipt of show cause notice and order.
Analysis: The petitioner contested an assessment order dated 30.01.2024, arguing that documents submitted were disregarded, and the tax proposal was confirmed based on an unraised ground. The writ petition was filed, alleging non-receipt of the show cause notice and impugned order. The petitioner received notices, replied to them, and the impugned order was issued. The petitioner's counsel highlighted that despite submitting documents, they were not considered, and proceedings were initiated but later dropped. The counsel argued that the tax proposal was confirmed without offering a personal hearing and referring to incorrect dates.
The Additional Government Pleader for the respondents acknowledged the notices issued and the petitioner's uploaded documents. It was noted that the petitioner failed to respond adequately to the show cause notice, which was based on discrepancies in GST returns. The impugned order referenced relevant GST enactments and the discrepancies. The court found that although the tax demands were confirmed due to the lack of objections from the taxpayer, the petitioner should be given an opportunity to contest the tax demand on merits.
Consequently, the court set aside the impugned order dated 30.01.2024 and remanded the matter to the first respondent for reconsideration. The petitioner was required to remit 10% of the disputed tax demand within three weeks and submit a reply to the show cause notice. Upon satisfaction of the conditions, the first respondent was directed to provide a reasonable opportunity for a personal hearing and issue a fresh order within three months. The bank attachment was lifted, and the respondent was restrained from initiating further proceedings. The writ petition was disposed of with no costs, and connected petitions were closed.
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