Shanmuga Agencies, Represented by its Partner, S. Rajinikanth V. The Assessment Unit, Income Tax Department, New Delhi

WP(MD)/7316/2024

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The case involves Shanmuga Agencies, represented by its partner S. Rajinikanth, challenging an order and a subsequent Notice of Demand issued by the Assessment Unit of the Income Tax Department, New Delhi. The challenge was based on the grounds that the order was passed in violation of the principles of natural justice, specifically citing the lack of a reasonable opportunity for a personal hearing. The petitioner had initially requested a personal hearing, which was granted but marred by technical issues, leading to the belief that another hearing would be scheduled. The respondent argued that the opportunity was provided and submissions were made, thus no further hearing was necessary. The court sided with the petitioner, emphasizing the need for a fair hearing and procedural compliance.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 798199 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 29-08-2024
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: N KUMAR
• Assessee Lawyers: BHAGAVATH KRISHNAN; SRINATH SRIDEVAN
• Keywords: Personal hearing; Principles of natural justice; Technical glitches; Writ of Certiorari
• Section: ITBA/AST/S/147/2023-24/1061849679(1); ITBA/AST/S/156/2023-24/1061849815(1)

Judgement Text

"W.P.(MD)No.7316 of 2024 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 29.08.2024 CORAM THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ W.P.(MD)No.7316 of 2024 and W.M.P.(MD)Nos.6732 and 6733 of 2024 Shanmuga Agencies, Represented by its Partner, S.Rajinikanth ... Petitioner Vs. The Assessment Unit, Income Tax Department, New Delhi. ... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, calling for the records of the respondent bearing DIN No.ITBA/AST/S/147/2023-24/1061849679(1) dated 01.03.2024 and consequential Notice of Demand dated 01.03.2024 bearing DIN No.ITBA/AST/S/156/2023-24/1061849815(1) and to quash the same. For Petitioner : Mr.Bhagavath Krishnan For Mr.Srinath Sridevan Senior Counsel For Respondent : Mr.N.Dilip Kumar Standing Counsel 1/5 https://www.mhc.tn.gov.in/judis W.P.(MD)No.7316 of 2024 O R D E R This Writ Petition is filed challenging the order dated 01.03.2024 for the assessment year 2019-2020 on the premise that the impugned order has been passed in violation of principles of natural justice. 2. It is submitted by the learned counsel for the petitioner that the impugned order of assessment is challenged on the short ground that it has been made without affording the petitioner a reasonable opportunity of hearing. Pursuant to the notice dated 02.02.2024, the petitioner submitted his reply on 07.02.2024 and also requested for personal hearing and the same was granted on 26.02.2024 via Video Conference. The learned counsel for the petitioner would submit that although the petitioner opted for the same, no personal hearing was possible through Video Conference in view of technical glitches. The petitioner was under the bona fide belief that another personal hearing would be granted. However, the impugned order has been passed without granting any further personal hearing. It was thus submitted that the impugned order suffers from gross violation of principles of natural justice and the same is liable to be set aside. 2/5 https://www.mhc.tn.gov.in/judis W.P.(MD)No.7316 of 2024 3. To the contrary, it was submitted by the learned Standing Counsel for the respondent that the petitioner was granted opportunity and the petitioner had also made their submission and therefore there is no necessity for further personal hearing. 4. Heard the submissions made on both sides and perused the materials on record. 5. I find there is some merit in the submission of the learned counsel for the petitioner inasmuch as the Assessing Officer having granted personal hearing ought to have ensured that the above hearing is not an empty formality. Further, the petitioner could not avail the opportunity of personal hearing on account of some technical glitches. Thus, it is incumbent on the Assessing Authority to refix the personal hearing on some specified date and failure to do so, results in violation of natural justice, thereby vitiating the impugned proceeding. 3/5 https://www.mhc.tn.gov.in/judis W.P.(MD)No.7316 of 2024 6. In view thereof, the impugned order dated 01.03.2024 and consequential Notice of Demand dated 01.03.2024 are set aside. The respondent authority may proceed to complete the assessment from the stage of personal hearing. The petitioner shall co-operate with the assessment proceedings without seeking any adjournments. 7. Accordingly, this Writ Petition is disposed of. No costs. Consequently, connected miscellaneous petitions are closed. 29.08.2024 NCC:yes/no Index:yes/no Internet:yes/no Nsr To: The Assessment Unit, Income Tax Department, New Delhi. 4/5 https://www.mhc.tn.gov.in/judis W.P.(MD)No.7316 of 2024 MOHAMMED SHAFFIQ, J. Nsr W.P.(MD)No.7316 of 2024 29.08.2024 5/5 https://www.mhc.tn.gov.in/judis "