Mohan Agencies Vs State of U.P. and Another (Allahabad High Court)
Providing opportunity of hearing ensures natural justice and allows Revenue Department to pass appropriate orders
The Hon’ble Allahabad High Court in M/s Mohan Agencies v. State of U.P. And Another [Writ Tax No. 58 of 2023 dated February 13, 2023] has set aside the order passed by the Revenue Department, on the grounds that the opportunity of personal hearing was not given to the assessee, as the same was not opted by the assessee in reply to the Show Cause Notice (“the SCN”). Held that, providing the opportunity of hearing would ensure observance of rules of natural justice and allow the Respondent to pass appropriate and reasoned orders in order to serve the interest of justice and allow a better appreciation to arise at the appeal stage. Remitted the matter back to the Revenue Department.
Facts:
This petition has been filed by M/s Mohan Agencies (“the Petitioner”) challenging the order dated October 21, 2022 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) for the tax period July, 2017 to March, 2018 whereby, the demand in excess to INR 10 crores was raised against the Petitioner, on the ground that the SCN dated May 13, 2022 was issued to the Petitioner seeking reply wherein, the opportunity of personal hearing was not given.
The Respondent contended that the Petitioner was denied opportunity of hearing because the Petitioner had tick marked the option ‘No’ against the option for personal hearing in the reply to the SCN on September 14, 2022, submitted through online mode.
Issue:
Whether the Petitioner is entitled to get opportunity of personal hearing after declining the same in reply to the SCN?
Held:
The Hon’ble Allahabad High Court in Writ Tax No. 58 of 2023 held as under:
