2023 (9) TMI 485 - HC - Income Tax

Validity of passed u/s 143(3) r.w.s. 144B - violation of principles of Natural Justice by denying to participate in the proceeding for hearing in the impugned assessment proceeding - HELD THAT - It appears from record that notice of hearing through video conference was fixed at 12.30 p.m. on 22nd December, 2022 and a link was sent on 22nd December, 2022, to the petitioner. But inspite of fixing the time of hearing and providing the link by the Department, no access could be made for video conference and in support of such allegation by the petitioner, petitioner has annexed screenshot copies from his computer showing the blank screen at the time of hearing. Considering the facts and circumstances of the case, as appears from record that admittedly petitioner could not participate in the hearing for the assessment in question for no fault of him, in the interest of Justice, aforesaid impugned order is set aside and the matter is remanded back to the assessing officer concerned to pass a fresh speaking order after giving opportunity of hearing to the petitioner or his authorised representative. It is clarified that this Court is setting aside the impugned order only on the ground of violation of principle of Natural Justice without going into the merit of the impugned assessment order which shall be reconsidered by the assessing officer strictly in accordance with law.

Summary

Issues: Violation of principles of Natural Justice in an Income Tax assessment proceeding

Analysis:
The High Court of Calcutta heard a writ petition challenging an order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, on the grounds of denial of participation in the assessment proceeding for violating principles of Natural Justice. The petitioner alleged that despite receiving a notice for a video conference hearing, they were unable to access the link provided by the Department, as evidenced by screenshot copies submitted with the petition. The Court noted that the petitioner could not participate in the hearing through no fault of their own. Consequently, the impugned order dated 26th December, 2022, was set aside, and the matter was remanded back to the assessing officer for a fresh speaking order after providing an opportunity of hearing to the petitioner or their authorized representative.

The Court clarified that the setting aside of the impugned order was solely based on the violation of the principle of Natural Justice and did not delve into the merits of the assessment order. The assessing officer was directed to reconsider the assessment strictly in accordance with the law. The writ petition, numbered WPO/151/2023, was disposed of with these observations and directions.