Personal hearing notice under tax appeal procedure is mandatory; appellate orders were set aside for breach of natural justice.

Section 250(1) of the Income-tax Act requires the Commissioner (Appeals) to fix a hearing date and place and to notify the appellant of the personal hearing. Notices calling only for written submissions do not satisfy this requirement. Where no proper hearing notice is given, the appellate order is passed in breach of natural justice. The Madras HC accordingly set aside the impugned appellate orders and remanded the matters for fresh consideration, directing that the appellant be given clear 14 days' notice and an opportunity of personal hearing.

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Issues: Whether the appellate orders were liable to be set aside for breach of Section 250(1) of the Income-tax Act, 1961 on the ground that the appellant was not given notice of personal hearing.

Analysis: Section 250(1) requires the Commissioner (Appeals) to fix a day and place for hearing the appeal and to give notice of the same to the appellant. The notices referred to in the impugned orders were issued for filing written submissions and did not amount to notice of personal hearing. In the absence of a hearing notice as mandated by the provision, the appellate orders were passed in violation of the principles of natural justice.

Conclusion: The impugned appellate orders were set aside and the matters were remanded for fresh consideration after granting a clear 14 days' notice and an opportunity of personal hearing.

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