Sanjay Lalwani Vs PCIT (Madras High Court)
The Madras High Court reviewed petitions filed by Sanjay Lalwani challenging income tax orders for the assessment years 2017-18, 2018-19, and 2019-20. Lalwani argued that the orders, which included certain tax additions, were passed without granting his requested personal hearing, violating Section 263 of the Income Tax Act, 1961. The court noted that while the petitioner’s objections were considered, the lack of a personal hearing contravened principles of natural justice. The court emphasized that a personal hearing is a crucial right under the Act, which allows taxpayers to fully present their case. Consequently, the court declared the impugned orders as non-est in law, meaning they are invalid and without legal effect. The court set aside the orders and remanded the cases back to the Principal Commissioner of Income Tax (PCIT) for reconsideration. The PCIT was instructed to provide Lalwani with a personal hearing, giving clear notice of fourteen days, and to issue a new, detailed order within four weeks after the hearing. The petitions were allowed without costs, and all related miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner has filed the above three writ petitions challenging the impugned orders of the first respondent dated 29.03.2024 passed in respect of Assessment Years 2017-18, 2019-20 and 2018-19 respectively.
