1973 (6) TMI 22 - HC - Income Tax

Summary

The High Court of Gauhati quashed an order of penalty imposed under section 36(1) of the Assam Agricultural Income-tax Act, 1939, for the assessment year 1955-56 due to violation of natural justice principles. The court held that the penalty order was invalid as the assessee was not given a reasonable opportunity to be heard before the penalty was imposed. The court also found the Commissioner's order on revision inadequate as it did not address the violation of natural justice. The court allowed the application, quashed the penalty order, and left it open for the authority to proceed in accordance with the law.