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2022 (9) TMI 1257 - BOMBAY HIGH COURTValidity of proceedings u/s. 144 - notice of hardly three hours was given to the petitioners to attend the personal hearing - denial of natural justice - entire proceedings u/s. 144 were commenced and included within a short span of 11 days - HELD THAT:- In C.B. Gautam v/s. Union of India and others [1992 (11) TMI 1 - SUPREME COURT] observed that the very fact that an imputation of tax evasion arises where an order for compulsory purchase is made and such an imputation casts a slur on the parties to the agreement to sell lead to the conclusion that before such an imputation can be made against the parties concerned they must be given an opportunity to show cause that the under valuation in the agreement for sale was not with a view to evade tax. It is, therefore, all the more necessary that an opportunity of hearing is provided. In Sahara India (Firm) vs. Commissioner of Income- tax, Central-I [2008 (4) TMI 4 - SUPREME COURT] Hon'ble Supreme Court highlighted the necessity and importance of opportunity of pre-decisional hearing to an asseesee and that too in the absence of any express provision. Show Cause Notices were issued on 19/02/2022 and the final impugned orders were made on 30/03/2022. There is some merit in the petitioners' contentions about the failure of natural justice in the peculiar facts of the present case. Therefore, without going into the merits and by focusing on the peculiar facts and circumstances of the present case like the shortness of the notice coupled with the fact that the petitioners are a Government Company which functions through its officials, we think that the interest of justice would be served if the impugned orders are set aside and the matter is remanded to the Assessing Officer for passing fresh orders after granting a reasonable opportunity of hearing to the petitioners. The penalty notices, which were consequential to the impugned assessment orders are also set aside for the present. Further, if the occasion arises liberty is granted to the respondents to reissue such notices.
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