Panchvati Ship Breakers Through Its Partner Rameshkumar Shivlal Vs National Faceless Assessment Centre & Anr. (Gujarat High Court)
Gujarat High Court quashed the faceless assessment order in the case of Panchvati Ship Breakers Through Its Partner Rameshkumar Shivlal vs. National Faceless Assessment Centre & Anr. due to the denial of an opportunity for a personal hearing via video conference. The petitioner challenged the assessment order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, arguing that the lack of a personal hearing violated the principles of natural justice. Despite requesting a video conference hearing in response to the show cause notice, the petitioner was not granted one before the final order was issued. The court took up the matter on this limited ground and did not delve into the case’s merits.
The respondents acknowledged that they would provide a hearing if the case were remanded. Considering the lack of adherence to the principles of natural justice, the court set aside the impugned assessment order and directed the Assessing Officer to issue a fresh order after granting the petitioner a personal hearing via video conference. The reassessment must be completed within twelve weeks from the receipt of the court’s order. The ruling reinforces the importance of fair procedure in faceless assessments, ensuring that taxpayers have the right to present their case effectively.
