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Tax Assessment Order Quashed for Denying Video Hearing; Case Remanded for Fresh Decision Due to Natural Justice Breach. The HC quashed the Assessment Order dated 29.03.2022 under Section 143(3) of the Income Tax Act, 1961, due to a breach of natural justice. The petitioner ...
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Tax Assessment Order Quashed for Denying Video Hearing; Case Remanded for Fresh Decision Due to Natural Justice Breach.
The HC quashed the Assessment Order dated 29.03.2022 under Section 143(3) of the Income Tax Act, 1961, due to a breach of natural justice. The petitioner was denied a scheduled video conference hearing, despite logging in, as no one appeared for the conference. The court remanded the matter to the Assessing Officer for a fresh decision, mandating a video conference hearing within 12 weeks as per Section 144B(7) of the Act. The court emphasized that the decision did not address the merits of the case, and the notice was discharged accordingly.
Issues: Challenge to Assessment Order under Income Tax Act due to breach of natural justice in availing video conferencing for personal hearing.
Analysis: The petitioner challenged the Assessment Order dated 29.03.2022 under Section 143(3) of the Income Tax Act, 1961, citing a breach of natural justice as they were unable to avail the opportunity of a video conference hearing scheduled on 28.03.2022. The petitioner's representative was online and logged in but no one appeared for the conference, despite communication to this effect. The Assessing Officer incorrectly recorded that the petitioner did not log in for the hearing, which was disputed with evidence. The petitioner sought to quash the order and remand the matter for a fresh hearing through video conferencing as per Section 144B(7) of the Act.
The Senior Standing Counsel for the respondent contended that the petitioner failed to log in for the hearing, as recorded by the Assessing Officer. However, the documents provided by the petitioner contradicted this claim, showing an immediate response regarding the inability to participate in the video conference. The court noted the discrepancy and considered the petitioner's plea for another opportunity for a personal hearing through video conferencing.
The court observed that the petitioner had requested a video conference hearing, logged in as evidenced, but no one appeared for the conference, leading to a denial of the opportunity for a personal hearing. Citing Section 144B(1)(vii) of the Act, which mandates the right to a response and personal hearing, the court found a breach of natural justice due to the failure to conduct the video conference as scheduled. Without delving into the merits of the case, the court quashed the impugned order and remanded the matter to the Assessing Officer for a fresh decision after providing a video conference hearing to the petitioner within 12 weeks.
The court clarified that the decision did not assess the merits of the case, and the Assessing Officer was directed to issue a fresh order within the specified timeframe, ensuring a video conference hearing for the petitioner as per the law. Consequently, the petition was disposed of, and the notice was discharged.
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