Income Tax Orders Violating Natural Justice Deemed Non-Est in Law: Madras HC Remands Matter to PCIT [Read Order]

In a recent ruling, the Madras High Court remanded the matter to the Principal Commissioner of Income Tax ( PCIT ) as the income tax order passed violated natural justice and was deemed non-est in law.

Sanjay Lalwani, the petitioner filed three writ petitions challenging the orders passed in the assessment year 2017-18, 2019-20, and 2018-19 by the Principal Commissioner of Income Tax (PCIT) under section 263 of the Income Tax Act, 1961. The petitioner requested a personal hearing before the PCIT to present objections against the assessment. Unfortunately, the PCIT passed the orders without granting a personal hearing.

Get a Copy of Income Tax Act, Click here

The petitioner’s counsel represented by Suhrith Parthasarathy argued that the orders passed by the PCIT without providing an opportunity for a personal hearing, violated the principles of natural justice.

The counsel submitted that the petitioner is entitled to have a personal hearing under section 263 of the Income Tax Act. Therefore, the counsel prayed to set aside the impugned orders and remand the matter for reconsideration so that the petitioner could have an opportunity to present his case.

Get a Copy of Income Tax Act, Click here

On the other side, the respondent counsel represented by A.N.R.Jayaprathap argued that the PCIT considered all the petitioner’s objections so the request for a personal hearing was not granted. The Counsel prayed the court to pass an appropriate order considering the matter.

A single bench of Justice Krishnan Ramasamy observed that the assessment order included certain additions and was passed by the PCIT. The court noted that the petitioner had given a reply, arguing that the additions were improper, and requested a personal hearing. However, the PCIT did not grant the hearing, violating the principles of natural justice. Therefore, the impugned orders passed by the PCIT for the assessment years 2017-18, 2019-20, and 2018-19 are non-est in law.

Get a Copy of Income Tax Act, Click here

Accordingly, the court set aside the impugned order passed by the Principal Commissioner of Income Tax for the assessment years 2017-18, 2019-20, and 2018-19, and the matters were remanded back to the Principal Commissioner of Income Tax for reconsideration.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates