Case Note & Summary
The petitioner, Meval Vipul Maniar, filed a writ petition challenging the Assessment Order dated 21.03.2023 passed under Section 147 read with Section 144B of the Income-tax Act, 1961, along with the Demand Notice under Section 156 of the Act. The brief facts are that on 10.10.2022 and 25.01.2023, the petitioner received notices under Section 142(1) of the Act from the National e-Assessment Centre, Delhi, asking for details. On 15.03.2023, a Show Cause Notice was issued proposing an addition of Rs.11,13,265/-, fixing the compliance date as 18.03.2023, giving only about two days' time. On 17.03.2023, the petitioner requested an adjournment of four days till 21.03.2023. However, on 19.03.2023, the respondent closed the proceedings without considering the adjournment request. The petitioner filed grievance applications on 20.03.2023. On 21.03.2023, while resolving the grievance petitions, the department requested the petitioner to file relevant documents, but the assessment order was passed on the same day. The court held that the reassessment order is in gross violation of principles of natural justice as the petitioner was not given adequate time to respond and his adjournment request was not considered. The court quashed the assessment order and demand notice, and remanded the matter back to the Assessing Officer to pass a fresh order after giving the petitioner a reasonable opportunity of hearing, including a personal hearing through video conferencing if requested. The court also directed that the petitioner shall be given at least two weeks' time to respond to any show cause notice.
Headnote
A) Constitutional Law - Principles of Natural Justice - Adequate Opportunity of Hearing - Income-tax Act, 1961, Sections 147, 144B - The petitioner was given only two days to respond to a show cause notice and his adjournment request was not considered before closing proceedings - Held that the reassessment order is in gross violation of principles of natural justice and is quashed (Paras 3-5).
Issue of Consideration
Whether the reassessment order passed under Section 147 read with Section 144B of the Income-tax Act, 1961 is vitiated due to violation of principles of natural justice by not granting adequate time and not considering the adjournment request.
Final Decision
The court quashed the Assessment Order dated 21.03.2023 and the Demand Notice under Section 156 of the Act, and remanded the matter back to the Assessing Officer to pass a fresh order after giving the petitioner a reasonable opportunity of hearing, including a personal hearing through video conferencing if requested. The petitioner shall be given at least two weeks' time to respond to any show cause notice.
Law Points
- Principles of natural justice
- reasonable opportunity of hearing
- adjournment request must be considered
- reassessment proceedings must comply with procedural fairness
