Delta Global Allied Ltd.… v. Additional/Joint/Deputy/Assistantcommissioner Of Income Tax/Income Taxofficer And Ors. …

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO. 1639 OF 2021 Delta Global Allied Ltd.… Petitioner Versus Additional/Joint/Deputy/AssistantCommissioner of Income Tax/Income TaxOfficer and Ors. … Respondents … Respondents … Mr.P.J.Pardiwalla, Sr.Advocate with Mr.Jeet Kamdar i/by Mr.Atul Jasani for the Petitioner. Mr.Sham Walve for the Respondent. ... CORAM : K.R.SHRIRAM & ABHAY AHUJA, JJ DATED :25[th] August, 2021. P.C.: Though various grounds have been raised in this Petition to challenge the impugned order dated 13[th] April 2021, one of the primary grounds is that the order impugned was passed without following the principles ofnatural justice, to wit, no personal hearing was granted. A Division Benchof this Court in Piramal Enterprises Limited vs. Additional/ joint/ Deputy/ Assistant Commissioner of Income-tax/Income-tax Officer National e- Assessment Centre and Ors.,1 has held that when the assessee has made a 1(2021) 129 Taxmann.com Page 18 (Bombay) request for grant of personal hearing, the request has to be granted. TheCourt held that the principle of natural justice requires that a personalhearing has to be granted. 2In this case Petitioner received a show cause notice dated 31[st] March,2021 for an Assessment Year 2018-2019 calling upon to show cause as towhy assessment should not be completed as per draft Assessment Orderwhich was annexed to the notice. Para 3(c) of the notice reads as under: “ If required, you may request for personal hearingso as to make oral submissions or present your caseafter filing of written reply. On approval of the request,personal hearing shall be conducted exclusivelythrough video conference.”so as to make oral submissions or present your caseafter filing of written reply. On approval of the request,personal hearing shall be conducted exclusivelythrough video conference.” Petitioner in its reply dated 5[th] April, 2021 has made a request to grant apersonal hearing if their submissions are not accepted and taken otherwise.Notwithstanding this request, Respondent, before passing the AssessmentOrder which is impugned in the Petition, has not granted any personalhearing nor mentioned as to why personal hearing cannot be granted. 3In our view, if personal hearing is granted, Petitioner will be able topersuade Assessing Officer to appreciate unrealized aspects and effectivelyexplain its case. In the circumstances, we hereby set aside the impugned REKHAPRAKASHPATIL Digitally signed byREKHA PRAKASHPATILDate: 2021.08.2716:35:40 +0530 65-wp-1639-2021.doc Assessment Order and consequential notice of demand dated 13[th] April,2021 and also penalty notices dated 13[th] April, 2021, Copies whereof are atExhs.M,N,O & P to the Petition and remand the matter back for de-novohearing. 4The concerned Authority shall pass such Order as deemed fit aftergranting personal hearing to Petitioner as per the rules. 5We clarify, we have not made any observations on the merits of thecase. 6Petition stands disposed. (ABHAY AHUJA, J.) (K.R.SHRIRAM, J.)