Denial of Hearing Despite Prior Direction of Coordinate Bench: Calcutta HC Sets Aside Income Tax Order, Remands Matter to NFAC [Read Order]
The matter was remanded to NFAC with directions to provide a proper opportunity of personal hearing and dispose of the appeal afresh within 16 weeks
![Denial of Hearing Despite Prior Direction of Coordinate Bench: Calcutta HC Sets Aside Income Tax Order, Remands Matter to NFAC [Read Order]](https://images.taxscan.in/h-upload/2025/07/25/2068876-calcutta-high-court-nfac-income-tax-taxscan.webp "Denial of Hearing Despite Prior Direction of Coordinate Bench: Calcutta HC Sets Aside Income Tax Order, Remands Matter to NFAC [Read Order]")
The High Court of Calcutta, set aside the income tax order passed under Section 250 of the Income Tax Act,1961 and remanded the matter to the National Faceless Appeal Centre (NFAC), observing that no personal hearing was granted despite prior direction from the Coordinate Bench Nazirpur Large sized Multipurpose Co-op Society & Anr,petitioner-assessee, had approached the...
The High Court of Calcutta, set aside the income tax order passed under Section 250 of the Income Tax Act,1961 and remanded the matter to the National Faceless Appeal Centre (NFAC), observing that no personal hearing was granted despite prior direction from the Coordinate Bench
Nazirpur Large sized Multipurpose Co-op Society & Anr,petitioner-assessee, had approached the Court stating that no hearing was granted before the final order was passed under Section 250 of the Income Tax Act on 17th March 2025, despite a prior direction by the Court on 13th February 2025.
On 25th June 2025, the Court took note of this and observed that the NFAC appeared to have passed the order without following the earlier direction. The order dated 17th March 2025 was stayed, and the jurisdictional Commissioner of Income Tax (Appeals)[CIT(A)]was directed to file an affidavit explaining the lapse. The matter was listed for further hearing on 2nd July 2025.
When the case was taken up on 2nd July 2025, an adjournment was sought by the respondent’s counsel. During the resumed hearing, the respondent counsel placed an affidavit before the Court, stating that the appellate authority had acknowledged the lapse. It was explained that the order was passed without a hearing due to heavy pendency and oversight, and the error was unintentional.
The Court held that the order dated 17th March 2025 was passed without following the directions of the Coordinate Bench issued on 13th February 2025 in WPA 5351 and WPA 5348 of 2020, and therefore, could not be sustained. The order and all related demands were set aside.
The matter was remanded to the NFAC with directions to dispose of the appeal under Section 250 of the Income Tax Act in accordance with the Coordinate Bench’s directions.
The Court also directed that proper opportunity of personal hearing be given to the petitioner and that the matter be decided within 16 weeks from the date the order is communicated.
With these directions, the writ petition was disposed of.
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