NFAC Fails to Provide Video Conferencing Personal Hearing, Violating Principles of Natural Justice: Madras HC Remands Matter [Read Order]
Considering the violation, the madras HC remanded the matter for fresh consideration by granting the petitioner a personal hearing opportunity
Madras High Court – NFAC – National Faceless Appeal Centre – NFAC video conferencing issue Madras HC – Taxscan
Madras High Court – NFAC – National Faceless Appeal Centre – NFAC video conferencing issue Madras HC – Taxscan
In a recent ruling, the Madras High Court remanded the matter for fresh consideration due to the National Faceless Appeal Centre ( NFAC )’s failure to grant a personal hearing via video conferencing which violated the principles of Natural Justice.
Shoreline Development Ltd., the petitioner filed an income tax return for the assessment year 2015-16. An original assessment order was passed under Section 143(3) of the Income Tax Act for the same assessment year.
Aggrieved by the original assessment order, the petitioner filed an appeal on January 27, 2018, through electronic mode under Section 246A of the Income Tax Act.
The petitioner consistently requested an opportunity for a personal hearing through video conferencing but the respondents did not provide this opportunity. The National Faceless Appeal Centre on June 19, 2024, passed an impugned order for the assessment year 2015-16.
The petitioner filed a writ petition before the High Court of Madras seeking to quash an impugned order under Section 250 of the Income Tax Act, 1961.
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The petitioner's counsel argued that the failure to provide a video conferencing hearing violated the principles of natural justice.
The respondent's senior counsel conceded that the video conferencing opportunity was not provided and agreed to comply with any order issued by the court.
The court found that the lack of a personal hearing through video conferencing constituted a violation of the principles of natural justice.
The court set aside the impugned order dated June 19, 2024, due to this violation and the matter was remanded back to the Appellate Authority for a fresh decision in accordance with the law by granting a personal hearing via video conferencing.
The court directed the Appellate Authority to complete the exercise within four months from the receipt of the order.
The writ petition was disposed of without costs, and any connected miscellaneous petition was closed.
To Read the full text of the Order CLICK HERE
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