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2022 (3) TMI 781 - HC - Income TaxValidity of Assessment u/s 144B - As argued assessment order has been passed without considering the reply furnished by the Petitioner and without affording an opportunity of `Personal Hearing' through virtual mode to the Petitioner - HELD THAT:- Having heard learned counsel for the parties, this Court is of the view that the issue involved in the present writ petition is no longer res integra. This Court in the case of Bharat Aluminium Company Ltd. vs. Union of India & Ors [2022 (1) TMI 658 - DELHI HIGH COURT] has held that the use of the expression “may” in Section 144B(7)(viii) is not decisive. Where a discretion is conferred upon a quasi judicial authority whose decision has civil consequences, the word “may” which denotes discretion should be construed to mean a command. Consequently, the requirement of giving an assessee a reasonable opportunity of personal hearing is mandatory. It was further held that the classification made by the Respondent between the matters involving disputed questions of fact and law by way of the Circular dated 23rd November, 2020 is not legally sustainable. Accordingly, the impugned assessment order dated 22nd April, 2021 passed under Sections 143(3) and 144B of the Income Tax Act, 1961 as well as notices for demand and penalty for the assessment year 2018-19 are quashed and the matter is remanded back to the Respondent No. 2 for a fresh decision after giving an opportunity of hearing, in accordance with law.
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