Case Law Details
Winsome Highrise Pvt. Ltd Vs Union of India (Calcutta High Court)
Introduction: In a recent judgment by the Calcutta High Court, the principles of natural justice were upheld in the Income Tax case of Winsome Highrise Pvt. Ltd Vs Union of India. The petitioner’s appeal for personal hearing, as per Section 148A(d) of the Income Tax Act, was addressed, with the court emphasizing the necessity of adherence to these principles in such proceedings.
Analysis: The judgment reinforces the essential role of natural justice principles in ensuring fair adjudication, especially in income tax assessment proceedings. The court found that the assessing officer had neither denied nor provided reasons for not considering the petitioner’s request for a personal hearing, which was a violation of natural justice.
According to the court, disregarding the petitioner’s request for a personal hearing was a substantial breach of procedural fairness. This resulted in the court setting aside the impugned order under Section 148A(d) of the Act without going into its merit. Instead, it directed the assessing officer to pass a fresh order after providing an opportunity for a personal hearing and considering the petitioner’s objections.
This ruling reestablishes the importance of personal hearings in tax assessment cases and reaffirms the commitment of the judiciary to uphold natural justice principles.
Conclusion: The case of Winsome Highrise Pvt. Ltd Vs Union of India reflects the deep-rooted commitment of Indian courts to uphold the principles of natural justice. The verdict has significant implications for income tax assessment proceedings, underlining the importance of personal hearings. Furthermore, the judgment provides a significant precedent for future cases, emphasizing that disregarding requests for personal hearings can amount to a violation of natural justice. This case is a testament to the judiciary’s vigilance in ensuring fairness and transparency in legal procedures.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Heard learned advocates appearing for the parties.
The affidavit of service filed in Court today be kept with the record.
By this writ petition, petitioner has challenged the impugned order under Section 148A(d) of the Income Tax Act, 1961 dated 17th April, 2023, relating to the assessment year 2019-20, on the ground of violation of principles of natural justice by denying the petitioner opportunity of personal hearing in spite of specifically asking for the same by its letter dated 29th March, 2023 in its objection to the notice under Section 148A(b) of the Act.
The respondent assessing officer neither rejected the petitioner’s prayer for personal hearing nor it has recorded any reason for not considering the petitioner’s prayer for personal hearing as appears on perusal of the aforesaid impugned order.
Considering the facts and circumstances of the case as appears from record and submission of the parties, without going into the merit of the aforesaid impugned order under Section 148A(d) of the Act, and all subsequent proceeding on the ground of violation of principles of natural justice by denying the petitioner personal opportunity of hearing, are set aside and the matter is remanded back to the Assessing Officer concerned to pass a fresh order under Section 148A(d) of the Act by giving opportunity of personal hearing and after considering the objection filed by the petitioner dated 29th March, 2023, within a period of eight weeks from the date of communication of this
order.
With this observation and direction, this writ petition being WPA 12293 of 2023 is disposed of.
