Hasmukh Nanalal Parekh Vs Union of India (Gujarat High Court)
Gujarat High Court held that assessment order passed under section 147 of the Income Tax Act without granting opportunity of personal hearing is not tenable. Accordingly, the order is quashed and appeal is allowed.
Facts- By this petition under Article 226 of the Constitution of India, the petitioner has challenged and prayed for quashing and setting aside the impugned demand notice dated 31.3.2023 issued by the respondent No. 2 under Section 156 of the Income Tax Act, 1961 as well as impugned order dated 31.3.2023 issued under Section 147 read with Section 144 of the Act as well as show-cause notice dated 16.3.2023 issued under Section 148A (b) of the Act and initiation of reassessment proceedings as well as Order dated 26. 3. 2022 under section 148A (d) of the Act and Notice dated 25.3.2022 under Section 148 of the Act.
Conclusion- Held that the petitioner had requested for personal hearing. However, without granting opportunity of personal hearing, the order under Section 147 read with Section 144 of the Act was passed on 31. 3. 2023 . It is a fundamental proposition of law that other side should be heard before any order is passed. The maxim audi alteram partem i s broad enough to include the rule against bias since a fair hearing is must for an unbiased hearing. In the instant case, it is not in dispute that the hearing was not granted to the petitioner despite request being made. In view of the same, the impugned assessment order passed by the respondent in case of the petitioner dated 31. 3. 2023 under Section 147 read with Section 144 B of the Act for the A.Y. 2018 – 19 is not tenable and is required to be quashed and set aside and is accordingly quashed and set-aside. In view of the same, the notice under Section 156 of the Act dated 31.3.2023 is also quashed and set-aside. The petition is allowed.
