2021 (5) TMI 490 - HC - Income Tax

Denial of natural justice - petitioner state that no opportunity was given either to her son or the petitioner, to inspect the records and take copies of the documents, by considering the representation of the petitioner's son dated 06.11.2019 and therefore, an opportunity should have been given to the petitioner to inspect the documents - HELD THAT - In view of the same, the respondent is directed to dispose of the representation of the petitioner's son, dated 06.11.2019, on merits and in accordance with law, by affording an opportunity of hearing to the petitioner, within a period of six weeks from the date of receipt of a copy of this order.

Issues:
1. Petition seeking issuance of a Writ of Mandamus for the respondent to consider a representation and allow inspection of records.
2. Re-opening of assessments for multiple years under the Income Tax Act, 1961.
3. Pending appeals before the Commissioner of Income Tax (Appeals) challenging jurisdiction under Section 147/148.
4. Request for inspection of Income Tax Records and related documents.
5. Failure to provide documents for inspection leading to a writ petition after the demise of the concerned individual.

Analysis:
1. The petitioner filed a writ petition seeking a Writ of Mandamus to direct the respondent to consider a representation dated 06.11.2019 and allow inspection of records, including the report of the Deputy/Assistant Director of Investigation. The petitioner's son, a Stock Consultant and individual assessee, had not filed returns for the assessment year 2012-13, leading to the re-opening of assessments for subsequent years. The court directed the respondent to dispose of the representation within six weeks, affording an opportunity for the petitioner to be heard.

2. The respondent had re-opened assessments for the petitioner's son for the years 2012-13, 2013-14, 2014-15, and 2015-16 based on an interim report from the Assistant Director of Income Tax (Investigation). Subsequently, scrutiny assessments were conducted, raising demands under Section 143(3) r/w Section 147 of the Income Tax Act, 1961. Appeals challenging the jurisdiction under Section 147/148 were pending before the Commissioner of Income Tax (Appeals) -1, Madurai.

3. The petitioner's son challenged the validity of the re-opening of assessments, citing a lack of independent application of mind. He sent a representation on 06.11.2019 requesting to inspect Income Tax Records and take copies of relevant documents, including the investigation report. Despite repeated attempts, the documents were not provided for inspection, and the petitioner's son passed away before resolution, leading the petitioner to file the writ petition as the legal heir.

4. The court noted that no opportunity was given to the petitioner or her son to inspect the records and take copies of documents based on the representation. The Special Government Pleader for the respondent assured that the representation would be considered in accordance with the law. Consequently, the court directed the respondent to dispose of the representation within six weeks, ensuring a fair hearing for the petitioner.

5. The judgment, delivered by Honourable Mrs. Justice J. Nisha Banu, emphasized the importance of affording procedural fairness and the right to be heard in matters concerning representations and inspection of crucial documents related to tax assessments. The order provided a clear directive for the respondent to address the petitioner's concerns within a specified timeframe, ultimately disposing of the writ petition without imposing any costs.

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