This case involves an appeal by Pawan Kumar Bansal against an order of the Commissioner of Income Tax (Appeals) for the assessment year 2014-15, which was alleged to have been passed without proper procedural adherence, violating principles of natural justice.
The appellant, Pawan Kumar Bansal from New Delhi, contested the revisional order passed by the Pr.CIT, which was claimed to have been done without a proper opportunity of being heard, citing non-receipt of a crucial notice.
During the tribunal proceedings, it was argued that the assessee did not receive the show cause notice in time, which prevented a proper defense during the revisional proceedings under Section 263 of the Income Tax Act. The tribunal highlighted the importance of ensuring procedural fairness and proper opportunity to be heard.
The tribunal observed a potential rush in passing the ex-parte order by the revisional commissioner and emphasized the necessity of a fair hearing, which is integral to the principles of natural justice. The matter was thus remanded back for a fresh assessment, ensuring the assessee receives a proper hearing.
The case underscores the critical role of procedural justice in tax assessments and the impact of administrative oversights on the rights of taxpayers. The decision serves as a reminder for tax authorities to adhere strictly to legal norms ensuring fairness and transparency in their proceedings.
The appeal was allowed for statistical purposes, and the case was sent back to the revisional commissioner to be reconsidered after providing a proper opportunity to the appellant to present his case. This outcome highlights the judiciary’s role in safeguarding taxpayer rights against procedural irregularities.
ITA 996/DEL/2020: Examination of Proper Hearing Denial and its Legal Ramifications
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