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2022 (2) TMI 1034 - HC - Income TaxValidity of Assessment u/s 144-B - Denial of opportunity of personal hearing - Scope of the word may - HELD THAT - In terms of Section 144-B 7(vii) seeking an opportunity of personal hearing which has been denied. Learned counsel submits that fair opportunity has not been provided to put up their submissions and defence and the order goes beyond the contents of the show cause notice. Learned counsel also relied upon the judgment delivered by Delhi High Court in the case of Sanjay Aggarwal Vs. National Faceless Assessment Centre, Delhi 2021 (6) TMI 336 - DELHI HIGH COURT to submit that the provision contained under Section 144-B 7 (viii) where the Chief Commissioner was required to approve the request for personal hearing is mandatory form, as the word may as to mean shall for the said purpose. Issue notice of the writ petition as well as stay application, returnable by 18.10.2021.
Issues Involved:
1. Examination of assessment done under Section 144-B of Income Tax, 1961 by the High Court without insisting upon filing an appeal. 2. Denial of opportunity of personal hearing under Section 144-B 7(vii). 3. Interpretation of the word "may" as "shall" in Section 144-B 7(viii) regarding approval for personal hearing by the Chief Commissioner. Analysis: 1. The judgment relied on the High Court of Delhi and the Supreme Court in previous cases to argue that assessments under Section 144-B of the Income Tax Act can be reviewed by the High Court without the need for filing an appeal. The counsel highlighted the lack of personal hearing in such assessments, emphasizing the need for fair opportunities for submission and defense. The judgment pointed out that personal hearings are crucial for ensuring justice and proper consideration of the petitioner's case. 2. The petitioner's application for a personal hearing under Section 144-B 7(vii) was denied, leading to the argument that the petitioner was not provided with a fair opportunity to present their submissions and defense. The judgment stressed the importance of adhering to procedural requirements and ensuring that the contents of the show cause notice are not exceeded in the final order. Reference was made to a Delhi High Court judgment to support the argument that the requirement for the Chief Commissioner's approval for a personal hearing is mandatory, interpreting the word "may" as "shall" for this purpose. 3. The interpretation of the word "may" as "shall" in Section 144-B 7(viii) regarding the Chief Commissioner's approval for a personal hearing was a crucial issue in the judgment. The counsel argued that this provision is mandatory, emphasizing the significance of obtaining approval for a personal hearing. By treating "may" as "shall," the judgment highlighted the importance of ensuring that procedural requirements are strictly followed in such cases to uphold the principles of natural justice and fairness. In conclusion, the judgment issued notices for the writ petition and stay application to be returned by a specified date, with additional provisions for serving notices through e-mail. The operation of the assessment order was stayed pending further proceedings, with the case scheduled for listing on a specific date. The judgment underscored the importance of procedural fairness, personal hearings, and adherence to statutory requirements in assessments under Section 144-B of the Income Tax Act.
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