9911796707
TMI Blog2024 (5) TMI 1532X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act, 1961 (hereinafter referred to as the 'Act'). Further, challenge has been raised to the order dated 20.03.2024 rejecting the petitioner's objections to the ex parte order dated 31.03.2023 passed under Section 148-A(d) of the Act for A.Y. 2016-17. 3. Merit issues apart, as to objection to initiation of the re-assessment proceedings, it is unequivocally borne out on the face of record that the first notice under Section 148-A(b) of the Act for A.Y. 2016-17 was issued to the petitioner on 22.03.2023. Issued through manual mode, the petitioner claims, it was not served on him. That objection apart, it cannot be disputed that the said notice was not uploaded on the web portal of the revenue. Thereafter, on 31.03.2023 order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. That requirement mandates the quasi judicial authorities to first confront the noticee with the adverse material and the tentative conclusions that may arise therefrom. Second, equally mandatory is the requirement to give the noticee sufficient time to respond to the notice after he has been confronted with the adverse material. Only after the first two requirements are met, the third necessary ingredient of natural justice may arise - to give reasonable opportunity of hearing to the noticee, wherever required. Thereafter, the last requirement of passing a reasoned order may be met. 8. All four steps are integral to and must be seen to co-exist - to establish the purity and (legal) sanctity of the decision making process, that may stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority through National Faceless Assessment Centre in accordance with Section 144B(6)(viii). However, the provision cannot be read to mean that opportunity of personal hearing may be granted only where the assessee specifically requests for the same. 6. There is no warrant to interpret that the processual law prescribes that opportunity of personal hearing may not be granted by the Assessing Authority unless specifically requested for by the petitioner, in writing. To do that would be to give meaning to the word "request" used under Section 144B(6)(vii) and (viii), larger and much wider than intended by the legislature. Under the general Scheme of the Act, assessment orders are to be passed after giving opportunity to the assessee to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, may be received differently by the Assessing Officer on a simple ex parte reading of the same. 8. Therefore, for the purpose of an effective discussion to arise and a reasoned conclusion to be drawn thereafter by the Assessing Officer, oral hearing remains an important and near about mandatory requirement to be fulfilled to ensure both, the requirement to pass a just and proper judicial or quasi judicial order and also to preserve the faith in the adjudicatory authorities. 9. Seen from another perspective, if the assessee is to be taxed at a rate or at income higher than he has returned, he deserves to know the reasons for the same. The reasons may not be drawn ex parte i.e. on the strength of an ex parte opinion of the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resee such situations are bound to arise in the normal course of things. In any case, the assessee would have lost one opportunity and tier of appeal, for no fault on its part. 11. Therefore, the word "request" used under Section 144B(6)(vii) and (viii) only imply, where an assessee may furnish his written reply to the show-cause notice but not opt to avail opportunity of personal hearing, it may not be mandatory for the Assessing Officer to grant such opportunity of personal hearing if he intends to accept the explanation furnished. He may pass appropriate ex parte order accepting the explanation furnished by the assessee. If however, on reading the explanation furnished, the Assessing Officer maintains his tentative opinion to pass the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 'X' and retained on record. In light of the above, no useful purpose may be served in keeping the present petition pending or calling for a counter affidavit or to relegate the petitioner to the forum of appeal. As discussed above, that appeal if filed will only require the Appeal Authority to function as the Assessing Authority in light of the amendment made in Section 251 of the Act. That a part on first principle - where rules of natural justice have been completely violated, we may never allow such an order to stand." 10. In the present facts, as noted above, first notice u/s 148A(b) of the Act was not served in the manner provided. Second, the order u/s 148A(d) was initially not served. Later, it was served with delay of ni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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