2022 (12) TMI 1573 - HC - Income Tax

Validity of order of assessment passed without availing an opportunity of hearing - denial of principle of natural justice - petitioner is an individual who is aggrieved by non-availment of opportunity of hearing though he had requested for the hearing through video conference - HELD THAT - This Court after issuing notice the respondent appeared and filed affidavit-in-reply where it has not disputed that opportunity of hearing has not been granted through video conference as had been asked for. It has dealt with the matter on merit. The order passed by the AO which is impugned in the present petition in last but one paragraph has categorically stated that there is no new submission which needs to be examined and hence the VC is not necessary to keep the same issue which is already dealt with . This is a clear and unequivocal breach of principles of natural justice. It is not for the assessing officer to decide whether the video conference is necessary or not. Once there is a request for personal hearing and as the law provides for availing the opportunity of personal hearing this unilateral decision on the part of the assessing officer without availing opportunity of hearing is contrary to Section 144B (9) and hence the petition is allowed quashing and setting aside the order of assessment. The officer concerned shall take up the matter from the stage where the request was made for availing the opportunity of hearing.

Summary

The Gujarat High Court, per Honourable Ms. Justice Sonia Gokani, addressed a petition challenging the respondent authority's order of assessment passed without granting an opportunity of hearing, despite the petitioner's specific request for a personal hearing via video conference. The respondent did not dispute the denial of the hearing but justified it on merit, stating "there is no new submission which needs to be examined and hence, the VC is not necessary."The Court held this to be a "clear and unequivocal breach of principles of natural justice," emphasizing that it is not within the assessing officer's discretion to deny a requested hearing. Such unilateral action contravenes Section 144B(9) of the Income-Tax Act, 1961. Accordingly, the Court allowed the petition, quashing and setting aside the assessment order, directing the officer to resume proceedings from the stage of the hearing request. The petitioner's hearing request must be made within two weeks, responded to within two weeks, and the adjudication completed within twelve weeks.The Court clarified that it did not examine the merits of the case and that this order does not prejudice either party's substantive rights.