Dev Marketing Vs Assessment Unit (Bombay High Court)
Bombay High Court recently set aside an income tax assessment order and remanded the case back to the assessing officer after the Income Tax Department admitted to a “bonafide error” in not granting a requested video conference hearing to the assessee, Dev Marketing.
The petitioner, Dev Marketing, challenged the assessment order dated August 9, 2022, arguing that it was made in violation of the principles of natural justice. Their counsel pointed out that despite a specific request for a personal hearing to discuss technical issues, the Assessing Officer (AO) did not grant one, contravening Section 143(3) read with Section 144B of the Income Tax Act, 1961.
In response to the petition, Shashikant Singh, the Assistant Commissioner of Income Tax, filed an affidavit acknowledging the error. The affidavit detailed the series of notices issued to the assessee under Sections 143(2) and 142(1) of the Income Tax Act, to which Dev Marketing had submitted replies. Notably, in their reply dated March 2, 2022, to a show-cause notice, the petitioner specifically requested a video conference to explain technical aspects of the case.
Mr. Singh stated in the affidavit that while the Assessing Officer had agreed to the video conference, a “bonafide error” occurred in granting this opportunity before the assessment order was passed on August 9, 2022. He emphasized that income tax proceedings are non-adversarial and that it is the department’s duty to rectify such errors in the interest of both the revenue and the assessee.
