Healthcare Global Enterprises Limited Vs Assessment Unit (Karnataka High Court)
The recent judgment by the Karnataka High Court has significant implications for Healthcare Global Enterprises Limited (HGE), revolving around an income tax assessment dispute. Healthcare Global Enterprises Limited filed a petition challenging the validity of the assessment order, computation sheet, demand notice, and a subsequent notice dated 30th April 2024. The crux of HGE’s argument was that they were not provided adequate time to respond to the show cause notices, which led to hurried submissions and denied them the opportunity for a personal hearing.
The court scrutinized the timeline of events, noting that the show cause notice issued on 24th April 2024 required a response within two days, contrary to procedural norms that mandate a seven-day period. HGE managed to submit written responses on time, but the court acknowledged that these were rushed due to the short notice.
The judgment emphasized the importance of natural justice principles, highlighting that the hurried assessment process could prejudice the petitioner’s ability to provide a thorough response. The absence of a personal hearing further compounded this issue, as it prevented HGE from clarifying their submissions adequately.
In response to these arguments, the Revenue authorities contended that the timely submission of written responses should suffice, dismissing claims of procedural impropriety.
