2023 (11) TMI 1195 - HC - Income Tax

Violation of the procedure prescribed u/s 250 - petitioner s husband had died and the petitioner being the wife and legal heir of her late husband has filed impleadment application - as alleged no notice of hearing after filing written submission by the petitioner was given to the petitioner fixing the date and place of hearing -- HELD THAT - From the facts as narrated in the impugned orders itself is evident that after 12.06.2023, no notice of hearing was issued to the petitioner though she had replied to Exhibits P-15 to P-20 Show Cause Notices as well as filed the written submissions on 16.08.2023. Commissioner (Appeals) was aware of the fact that the petitioner s husband had died on 09.05.2018 and the petitioner being the wife and legal heir of her late husband has filed impleadment application and also has filed the written submission and responded to the Show Cause Notices. It is therefore incumbent on the Commissioner (Appeals) to fix the date and place of hearing in the appeals and for that purpose a notice ought to have been issued to the petitioner herein as per the provisions of Section 250 of the Income Tax Act. No such notice fixing the date and place of hearing was issued after filing of the written submission by the petitioner. The present writ petition is allowed and the impugned orders in Exhibits P-34 to P-39 are set aside. The matter is remanded back to the file of the respondent to pass fresh order in accordance with the law. The petitioner is directed to appear before the respondent on 04.12.2023.

Summary

Issues:
The judgment involves the violation of procedural requirements under Section 250 of the Income Tax Act in the hearing and deciding of appeals.

Details of the Judgment:
The petitioner filed a writ petition under Article 226 of the Constitution of India challenging orders passed by the Commissioner of Income Tax (Appeals) related to assessment years 2010-11 to 2015-16. The petitioner's husband, who had initiated the appeals, passed away after filing the appeals. The petitioner sought to be impleaded in place of her deceased husband. Despite the petitioner's responses and submissions, no further notice of hearing was issued to her after a certain date.

The court noted that Section 250 of the Income Tax Act prescribes the procedure for appeals, including the requirement to fix a date and place for hearing, issue notices to the appellant and the Assessing Officer, and provide the appellant with the right to be heard. The court found that no notice of hearing was issued to the petitioner after she had responded to Show Cause Notices and submitted written arguments. The Commissioner (Appeals) was aware of the petitioner's status as the wife and legal heir of the deceased appellant but failed to follow the prescribed procedure.

The court ruled that the impugned orders were issued in violation of the procedural requirements of Section 250 of the Income Tax Act. Consequently, the writ petition was allowed, and the orders were set aside. The matter was remanded back to the respondent to pass a fresh order in accordance with the law. The petitioner was directed to appear before the respondent on a specified date without the issuance of a notice of hearing. The petitioner was permitted to present additional grounds for the appeal, and the respondent was instructed to decide the appeals afresh after hearing the petitioner. The court clarified that no further opportunities would be granted to the petitioner for submitting additional documents or evidence, except for filing additional grounds if desired.

Therefore, the court disposed of the writ petition with the above directions, emphasizing the importance of adhering to the procedural requirements outlined in the Income Tax Act for the fair and just resolution of appeals.