2025 (1) TMI 1354 - HC - Income Tax

Violation of principles of natural justice - Non providing all relied upon/non-relied upon documents in relation to Show Cause Notice - HELD THAT - The contention of the Petitioner that the principles of natural justice were not followed is correct. It clarified that the proceedings shall be conducted de novo by the Respondent No. 1. All rights and contentions of the parties are left open in this regard.

Summary

In the case before the Delhi High Court, presided over by Hon'ble Ms. Justice Tara Vitasta Ganju, the Petitioners challenged the Order-in-Original No. 07/2020 dated 04.03.2020 issued by Respondent No. 1, alleging a violation of the "principles of natural justice." The Petitioners contended that they were not provided with the relied upon/non-relied upon documents related to a Show Cause Notice dated 28.03.2013, nor were they given an opportunity to be heard.The Court noted that a Coordinate Bench had previously stayed the Impugned Order on 05.08.2020, and during the proceedings, Respondent No. 1 eventually provided the necessary documents to the Petitioners. Acknowledging the breach of natural justice, the Court set aside the Impugned Order and issued several directives:1. The Impugned Order was annulled.2. Petitioners are to be given a hearing, with the date mutually decided by the parties.3. Petitioners may present additional facts or documents during the hearing.4. Multiple hearings can be arranged if necessary.5. Respondent No. 1 must expedite obtaining any additional documents from the Petitioners.6. A "reasoned Speaking Order" must be issued within 12 weeks post-hearing.7. The Speaking Order should be communicated via acknowledged postal service and e-mail.The Court specified that the proceedings should be conducted "de novo" by Respondent No. 1, leaving all rights and contentions open. The Petitioners retain the right to pursue further legal action if aggrieved by the new order. The Petition was disposed of with these directions, and any pending applications were closed. The parties were instructed to act based on the digitally signed copy of the order.