Case Law Details
Wadakkancherry Service Vs ITO (Kerala High Court)
Introduction: The Kerala High Court recently rendered a significant verdict in the case of Wadakkancherry Service against the Income Tax Officer (ITO). The court’s decision overturned an assessment order due to a breach of natural justice. Let’s delve into the details of this crucial judgment.
Detailed Analysis: The appellant, a Co-operative Society, faced scrutiny for its income tax return of the assessment year 2020-21. Despite timely submission of objections post the due date, the assessing authority proceeded with the assessment, ignoring the appellant’s pleas for a personal hearing via video conferencing. The appellant’s response, submitted after the deadline due to office closures during holidays, was disregarded, leading to an unjust assessment order.
The court found that while the appellant’s reply was delayed, it was submitted directly to the assessing authority and contained crucial objections and requests for a hearing. However, the assessing authority failed to consider this reply, thereby violating principles of natural justice.
In its verdict, the Kerala High Court emphasized the importance of adherence to natural justice principles in administrative proceedings. It set aside the assessment order and directed the assessing authority to reconsider the case, taking into account the appellant’s submissions and providing a fair opportunity for a personal hearing.
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