Kerala Minerals And Metals Limited Vs ACIT (Kerala High Court)
Kerala High Court has set aside income tax assessment orders against Kerala Minerals & Metals Limited (KMML) for assessment years 2014-15, 2016-17, 2017-18, and 2018-19. KMML had challenged the orders before the Appellate Authority, alleging that its request for a personal hearing was ignored. The appeal for 2016-17 was dismissed on the ground that the assessment order was not submitted, while appeals for other years were rejected on merits. The company argued that the absence of an assessment order should have been noticed at the time of filing, allowing it an opportunity to rectify the omission. The court found that denying a hearing violated the principles of natural justice and set aside the orders.
The court emphasized that despite multiple written submissions from KMML requesting a hearing, the Appellate Authority did not provide one. It also noted that the authority failed to consider key issues in the 2016-17 appeal. The court ruled that the company must be given an opportunity to present its case before any decision is made. The matter was remanded for fresh adjudication, directing the authority to hear KMML and issue a new order within six months. The judgment reinforces the requirement for procedural fairness in tax disputes.
