Bharat Education Society Vs Assessing Officer (Bombay High Court)
The Bombay High Court set aside the CBDT order rejecting the condonation of a 1585-day delay in filing a revised income tax return by Bharat Education Society for AY 2015-16. The court found procedural lapses in the order issued by the Additional CIT (ITA Cell), CBDT, as it was not made by a CBDT Member but only approved by one. The petitioner argued that the lack of a personal hearing violated principles of natural justice. Relying on past judgments, including K. Madhani Prakash Engineers J V and Tata Autocomp Gotion Green Energy Solutions (P.) Ltd., the court noted that in similar cases, orders were set aside when the signatory had not personally heard the petitioner. The court emphasized that even if Section 119(2)(b) of the Income Tax Act does not explicitly mandate a hearing, fundamental fairness necessitates such an opportunity before rejecting an application.
Accordingly, the High Court remanded the matter to the CBDT for fresh consideration, directing that a reasoned order be passed after granting the petitioner a personal hearing. It observed that since the refusal to condone the delay carried significant civil consequences, due process and fairness were essential. The CBDT was instructed to complete the review within three months, ensuring compliance with legal principles. This judgment reinforces procedural propriety in administrative decisions affecting taxpayers.
