The Kerala High Court quashed re-assessment order under the Income Tax Act, 1961 in the matter regarding the denial of virtual hearing on ground that it was not in prescribed form.
The present writ petition has been filed impugning the order passed by the 2nd respondent in an appeal instituted by the petitioner against the assessment order dated 27.12.2018 passed under Section 143(3) of the Income Tax Act, 1961. The petitioner was issued notice who opted for the virtual hearing in the appeal by notice dated 19.02.2023. The said notice has been placed on record by the standing counsel on behalf of the respondent.
In pursuance to the said notice, the petitioner opted for personal hearing and also intimated the authorised person who will attend the virtual hearing through video conference. However, no link was generated for availing the said opportunity of virtual hearing to the petitioner and he had not subscribed to the personal hearing through video conferencing in the prescribed form.
A Single Bench of Justice Dinesh Kumar Singh observed that “The form in which the virtual hearing has to be subscribed is a matter of procedure and not a substantive law. The procedure is always handmade for doing the complete justice between the parties. Procedure cannot take away the substantive right of a person, if the person is otherwise eligible for substantive right of personal hearing. Considering this aspect, the petitioner was not afforded an opportunity of being heard.”
“The present writ petition is allowed and the impugned order is set aside and the matter is remanded back to the 2nd respondent to issue fresh notice to the petitioner for availing the opportunity of personal hearing and this time, the petitioner should not commit any mistake. He should opt for personal hearing in prescribed form” the Court held.
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