A division bench of the Delhi high court reused the income tax notice and the assessment order on the basis of the personal hearing was not granted to the taxpayer.
In the confrontation with the high court, the taxpayer as a single person challenged the assessment order on the date 07.06.2021 provided beneath section 143(3) read with section 144B of the income tax act, 1961 making an addition of Rs 7,34,28,895 treating that as additional income. The addition in the applicant’s income was asked on the basis of the interest obtain through him from the land acquisition collector (LAC) on enhanced compensation for the acquisition of his land. The consequential penalties were levied via the department on the grounds of the assessment.
The taxpayer specified that towards the court that an opportunity of the personal hearing was not permitted to the taxpayer prior to passing the order.
Justice Rajiv Shakdher and Justice Jasmeet Singh depend on the decision in Ritnand Balved Education Foundation (Umbrella Organization of Amity Group of Institutions) v. National Faceless Assessment Centre and Ors, in which it was held that since the statute itself builds the law for the permit of personal hearing, the council would not get back from it.
Permitting the relief to the taxpayer, the court mentioned that “The impugned assessment order dated 07.06.2021, as well as consequential notices i.e., the notice of demand issued under Section 156 of the Act, and the notice issued for initiation of penalty proceedings under Section 270A of the Act, of even date, are set aside.”
