Case Law Details
We Connect Agencies Vs Additional/Joint/Deputy/Assistant CIT/ITO (Kerala High Court)
Introduction: In a significant judgment, the Kerala High Court has quashed an Income Tax assessment order against We Connect Agencies, marking a pivotal moment for the enforcement of procedural rights in tax assessments. The case, stemming from the assessment year 2018-2019, revolved around the petitioner’s challenge against an order that was issued without providing an opportunity for a hearing, in clear violation of the principles of natural justice.
Detailed Analysis: The heart of the dispute lies in the Income Tax Department’s decision to complete the assessment for the year 2018-2019, resulting in a substantial demand against We Connect Agencies. Following the adverse assessment, the petitioner sought redress through an appeal, which was subsequently dismissed via the contested order (Ext.P5), purportedly without considering the petitioner’s submissions or providing a chance for oral arguments.
The petitioner’s counsel highlighted a critical procedural lapse, noting that despite uploading the submissions well before the deadline (on 23-08-2023), the appellate authority erroneously concluded that no submissions were made before 08-09-2023. This oversight, coupled with the failure to conduct a hearing, formed the crux of the legal challenge.
The Kerala High Court, upon reviewing the facts and submissions, identified a clear breach of procedural fairness. The court observed that the appellate authority’s decision was made on an incorrect premise regarding the submission of documents and without extending the fundamental right of a hearing to the petitioner. This led to the quashing of the Ext.P5 order and the restoration of the appeal for reconsideration, with specific instructions to consider the petitioner’s submissions (Ext.P4) and to ensure that a hearing is conducted.
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