No Hearing, No Decision: HC Sets Aside Rejection of Business Loss for Fresh Adjudication

Rajesh Jaswanth Rai Mehta Vs CIT (Appeals) (Karnataka High Court) The Karnataka High Court partly allowed the writ petition by setting aside the appellate order insofar as it rejected the claim of business loss, on the ground of violation of principles of natural justice. The Court noted that the assessee had specifically sought a personal hearing, but the Appellate Authority passed the order without granting such opportunity. Recognizing that the assessee intended to produce supporting documents such as invoices, vouchers and bank statements, the Court held that denial of hearing prejudiced t...