Case Law Details
Margita Infra Vs National E-Assessment- Centre Delhi (Gujarat High Court)
50 times higher assessment without considering request of petitioner for personal hearing through video conferencing – HC quashed Order
The petitioner, Margita Infra, sought redress under Article 226 and 227 of the Indian Constitution, challenging the assessment order. The court acknowledged the petitioner’s repeated requests for a virtual hearing, which were denied by the respondent. The assessment resulted in a 50-fold increase in the proposed income, which the court found unjustified.
The respondent justified the additions made under Sections 145(3), 68, 69A, and 36(1)(iii) of the Income Tax Act, following the faceless assessment scheme under Section 144B. However, the court observed that procedural requirements were not met, rendering the assessment order non-est.
The court cited precedents from other cases, where similar issues were addressed, supporting the petitioner’s contention that the assessment order lacked jurisdiction. The court emphasized the importance of providing opportunities for personal hearings when there are variations prejudicial to the assessee.
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