The Kerala High Court quashed the Income Tax Assessment order which was passed without following the natural justice principle. The court directed the petitioner to appear before the 2nd respondent and make a submission on time allowed.
V G Suresh, the petitioner challenged the orders passed by the Commissioner of Income Tax ( appeals ) – the 2nd respondent against the assessment orders for the assessment years 2011-12 to 2015-16.
Counsel for the petitioner submitted that the petitioner has approached the Court only on the ground of violation of the principle of natural justice as the petitioner was issued with the notice of hearing by the Appellate Authority for 10.10.2023 and 19.10.2023 for which the petitioner filed a reply and requested for an adjournment.
However, the petitioner’s request was not considered and the exparte appellate orders have been passed. It was submitted that the petitioner will appear on the date fixed before the Appellate Authority and will not seek any adjournment. Considering the said submission, Justice Dinesh Kumar Singh observed that there appears to have been a violation of the principle of natural justice to some extent. Therefore, the present writ petitions are allowed and the impugned Appellate orders are hereby set aside and the cases are remitted back to the 2nd respondent for a decision afresh.
The petitioner is directed to appear before the 2nd respondent and make a submission on 18.01.2024. The petitioner should also deposit 10% of the total assessed tax in all 5 assessment orders and if the petitioner deposits 10% of the amount assessed in five assessment orders, the remaining demand in pursuance to the assessment orders shall kept in abeyance till decision in the appeals taken by the 2nd respondent.
The court made clear that, if the petitioner does not deposit 10% of the assessed tax in the five assessment orders or fails to appear before the 2nd respondent on 18.01.2024, no further opportunity shall be granted to the petitioner and the demand as per the assessment orders shall be in force for the realisation of the tax assessed.
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