Gujarat HC: No notice being served on assessee, assessment order passed without giving an opportunity of hearing
The Gujarat High Court in the case Manishkumar Tulsidas Kaneriya Versus Assistant Commissioner of Income Tax, Central 1, Rajkot observed and has held that the assessment under as stated under Section 153 reading with Section 144 of the Act had been done by the assessing officer without giving of the petitioner assessee for an opportunity to be heard in terms of and within the meaning as stated under Section 144 of the Act.
The division bench comprising of Justice N.V. Anjaria and Justice Niral R. Mehta in the case observed that the petitioner did not receive any notice. Thus, it being only the petitioner who opened the portal for checking the demand for the assessment year 2021–2022, that he also knew about the impugned orders of reassessment and the consequential penalty orders.
Before the court, it has been submitted by the petitioner/ assessee that the assessment order as well as orders of penalty were never served upon him. The petition stated that on 25.03.2022, the petitioner also received an email communication from the income tax authorities wherein demanding for the assessment year raised 2021–2022.
Therefore, it has been averred by the petitioner that when the portal is being opened by them to check the demand for the said the assessment year 2021– 2022, he also came to know that the assessment order under Section 153C reading with Section 144 of the Act as well as penalty orders were passed.
It has also been contended by the assessee, while passing the assessment orders, no notice was being served upon the petitioner-assessee in respect of any of the assessment years, nor any notice was being served before the competent authority which proceeded for passing a penalty order.
However, the said court also remitted the matter back to the assessing officer for proceeding with the stage of notice that shall be served upon the petitioner.
It has also been directed by the court that the AO to exercise the fresh right for giving of an opportunity of being heard to the petitioner assessee and for completing the assessment proceedings right from the stage of issuing notice within a period of three months.
Accordingly, the court set aside the assessment order.