2023 (6) TMI 1400 - HC - Income Tax

Validity of reassessment order u/s 148A(d) - Violation of principles of natural justice by denying the petitioner opportunity of personal hearing in spite of specifically asked - HELD THAT - The respondent assessing officer neither rejected the petitioner s prayer for personal hearing nor it has recorded any reason for not considering the petitioner s prayer for personal hearing as appears on perusal of the aforesaid impugned order. Considering the facts and circumstances of the case as appears from record and submission of the parties without going into the merit of the aforesaid impugned order under Section 148A(d) of the Act and all subsequent proceeding on the ground of violation of principles of natural justice by denying the petitioner personal opportunity of hearing are set aside and the matter is remanded back to the Assessing Officer concerned to pass a fresh order under Section 148A(d) of the Act by giving opportunity of personal hearing.

Summary

Issues: Challenge to impugned order under Section 148A(d) of the Income Tax Act, 1961 for assessment year 2019-20 based on denial of opportunity of personal hearing.

Analysis:
- The petitioner challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961, dated 17th April, 2023, for the assessment year 2019-20, citing a violation of principles of natural justice due to the denial of the opportunity of personal hearing. The petitioner had specifically requested a personal hearing in its objection to the notice under Section 148A(b) of the Act dated 29th March, 2023. The respondent assessing officer did not reject the petitioner's prayer for a personal hearing nor provided any reason for not considering the request, as evident from the impugned order.

- The High Court, after considering the facts and circumstances of the case, refrained from delving into the merits of the impugned order under Section 148A(d) of the Act. Instead, the Court focused on the issue of denial of natural justice by not granting the petitioner a personal hearing. Consequently, the Court set aside the impugned order and all subsequent proceedings related to it. The matter was remanded back to the Assessing Officer concerned with a directive to pass a fresh order under Section 148A(d) of the Act. The Assessing Officer was instructed to provide the petitioner with an opportunity for a personal hearing and to consider the objections filed by the petitioner on 29th March, 2023. The Assessing Officer was given a deadline of eight weeks from the date of communication of the Court's order to complete this process.

- The Court disposed of the writ petition, numbered WPA 12293 of 2023, with the aforementioned observations and directions. The judgment emphasized the importance of upholding principles of natural justice, particularly in matters involving assessments under the Income Tax Act, and ensured that the petitioner's right to a fair hearing was safeguarded through the Court's intervention and remand of the case for a fresh decision with due consideration of the petitioner's objections and the opportunity for a personal hearing.