Failure to opportunity for personal hearing is violation of principle of natural justice: Kerala HC sets aside assessment order [Read Order]

The Kerala High Court has set aside an assessment order, citing that the failure to provide an opportunity for a personal hearing constitutes a violation of the principle of natural justice.

The assessee had failed to file a return for the assessment year. The case was reopened under Section 147 of the Income Tax Act 1961, with the court emphasizing the importance of adhering to natural justice principles. As per the assessment order, a notice under Section 148 of the Income Tax Act 1961 was issued on 30.03.2021, demanding that the assessee submit the income return for the assessment year 2015-16 within 30 days.

However, the petitioner-assessee did not comply with the notice. Following this, three notices under Section 142(1) of the Income Tax Act 1961 were issued on 11.11.2021, 21.12.2021, and 12.03.2022. Despite the petitioner's request for a personal hearing in response to the last notice, communicated via email on 21.03.2022, no opportunity for a personal hearing was provided. Additionally, the court observed that the time granted for compliance in the last notice, dated 12.03.2022, was only three days.

The Single member bench Justice Dinesh Kumar Singh having taken cognizance of the violation of the principle of natural justice, set aside the impugned assessment order. The matter was remanded back to the National Faceless Assessment Centre in North Block, New Delhi. The court directed the 1st respondent to afford the petitioner an opportunity for a hearing before finalizing the fresh assessment order. The present writ petition was allowed, emphasizing the need for due process in tax assessment proceedings.

The aforesaid direction, the present writ petition stands finally disposed of.

To Read the full text of the Order CLICK HERE

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