1970 (9) TMI 29 - HC - Income Tax

Revisional order passed without hearing the assessee validity of the order - as opportunity of hearing had not been given, the impugned order of the Income-tax Commissioner cannot be supported so it is quashed and matter is remanded

Summary

Issues: Lack of opportunity to be heard during revision by the Commissioner of Income-tax.

The judgment by the High Court of Orissa addressed the issue of natural justice and the right to be heard during a revision by the Commissioner of Income-tax. The court noted that despite written submissions being entertained, it was crucial for the party to have an opportunity for oral arguments. The judges emphasized that oral arguments allow for an interchange of thoughts between the judge and the advocate, which is essential for a fair decision-making process. The court highlighted that written submissions cannot replace oral arguments, especially in administrative tribunals functioning similarly to judicial officers in open court. The judges referred to a Supreme Court decision in Dwarka Nath v. Income-tax Officer, which established the principle that oral arguments are integral to the principles of natural justice, even in cases where the revision is filed by the party. The court cited its own previous decisions to support this position.

The High Court concluded that the Commissioner of Income-tax should have set a date for a hearing to allow the party to present their case through a counsel. Since this opportunity was not provided in the case at hand, the court quashed the impugned order and remanded the case to the Income-tax Commissioner for proper disposal of the revision application in accordance with the law and the observations made in the judgment. The writ application was allowed, and no costs were awarded in the circumstances. Judge B. C. Das concurred with the decision.