Facts of the Case

The present writ petition pertains to Assessment Year 2019–20. The petitioner challenged:

  • Order dated 06.04.2023 passed under Section 148A(d) of the Income Tax Act; and
  • Consequential notice issued under Section 148 of the Act.

The primary grievance raised by the petitioner was that despite specifically requesting a personal hearing, no such opportunity was granted by the Assessing Officer (AO).

Issues Involved

  1. Whether failure to grant a personal hearing under Section 148A(d) amounts to violation of principles of natural justice.
  2. Whether an order passed without granting such opportunity is liable to be set aside.

 Petitioner’s Arguments

  • The petitioner contended that personal hearing was explicitly requested.
  • Despite the request, no opportunity of hearing was provided before passing the impugned order.
  • This resulted in a clear violation of principles of natural justice, rendering the order unsustainable in law.

Respondent’s Arguments

  • The Revenue fairly accepted that personal hearing was not granted.
  • It was conceded that there had been a breach of natural justice principles.

 Court’s Findings / Order

  • The Court observed that non-grant of personal hearing constitutes violation of natural justice.
  • Accordingly:
    • The impugned order under Section 148A(d) and
    • The consequential notice under Section 148
      were set aside.
  • However, the Court granted liberty to the Assessing Officer:
    • To pass a fresh order after considering the petitioner’s reply.
    • To provide personal hearing to the petitioner.
    • To issue proper notice indicating date and time of hearing.
    • To pass a speaking order and furnish it to the petitioner.

 Important Clarification by Court

  • Even though the order was quashed, the Court did not bar fresh proceedings.
  • The Revenue was given full liberty to proceed afresh, subject to:
    • Grant of personal hearing, and
    • Passing a reasoned (speaking) order.

 Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/RAS01062023CW81182023_120036.pdf

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