9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (4) TMI 16 - HC - Income TaxAssessment order in breach of the principles of natural justice - No notice was issued in the name of the legal heirs of the deceased for transferring the case and no opportunity was given as required under the Act for transferring the case. - It is required to be noted that it was known to the respondents that Shri R.C. Jain had expired in the month of November, 2001 and yet no proper action was taken and proceedings were commenced against a dead person - On the basis of this, the assessment order came to be made on February 28, 2003, u/s 158BC and section 142 - It may be noted that this was also made without awaiting for the period given to the asses-see for filing the return. In view of this, as the principles of natural justice are grossly violated as well as the provisions contained in the Act having been violated, there is no option but to quash the assessment order.
Issues:
Challenge to transfer of case from Delhi to Calcutta and assessment order violation of natural justice and Income-tax Act, 1961. Analysis: The petitioner filed a petition challenging the respondents' actions in transferring the case from Delhi to Calcutta and making an assessment order in breach of natural justice and the provisions of the Income-tax Act, 1961. The search of the residential premises of a deceased individual, Mr. R.C. Jain, led to a show-cause notice being issued without reason for transferring the case to Calcutta. Despite informing the respondents about Mr. Jain's demise, no action was taken, and no notice was issued to the legal heirs for transferring the case, violating the Act's requirements. Furthermore, notices under sections 158BC and 142 of the Act were sent to the deceased, received by the petitioner, leading to an assessment order being made against the deceased on February 28, 2003, without waiting for the return filing period. This violation of natural justice and the Act necessitated the quashing of the assessment order, allowing the Revenue to proceed lawfully. The Commissioner of Income-tax (Delhi) was directed to provide an explanation within 15 days for the negligence in taking appropriate action after being informed of the death and commencing proceedings against a deceased individual. The judgment highlighted the gross violations of natural justice and the Income-tax Act, emphasizing the need to quash the assessment order due to the proceedings against a deceased person and the lack of explanation for the negligence displayed by the Commissioner of Income-tax (Delhi). The directive for the Commissioner to explain the lapses within a specified timeframe aimed at addressing the negligence and ensuring accountability. The court set a compliance date for further proceedings, allowing direct service for efficient communication in the matter.
|
