Remedies for Violation of Natural Justice in Tax Proceedings

Remedies Available

• Statutory Appeals: Under Section 246A of the Income Tax Act and Section 107 of the CGST Act.
• Writ Petition: Under Article 226 of the Constitution for gross violations.
• Rectification Applications: Section 154 (IT) and Section 161 (GST).
• Revision Petition: Section 264 (IT) and Section 108 (GST).

NOTE:

• Section 246A of Income Tax Act - Section 246A provides a list of orders passed by an Assessing Officer or other Income Tax authorities that a taxpayer can appeal against before the Commissioner of Income Tax (Appeals) [CIT(A)].
• Article 226 of the Constitution for gross violations - Article 226 gives High Courts the power to issue orders, directions, or writs for the enforcement of Fundamental Rights or for any other legal right.
• It's one of the most powerful remedies when there's a gross violation of law, natural justice, or fundamental rights
• Section 154 (IT) - Allows the Income Tax Authorities to rectify any mistake apparent from the record.
• Rectification must be made within 4 years from the end of the financial year in which the original order was passed.
• Section 161(GST) - Allows GST officers to rectify any mistake or error apparent on the face of the record in any decision, order, notice, or certificate.
• Rectification must be done within 6 months from the date of the original order.
• Section 264 (IT) - Section 264 empowers the Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) to revise any order passed by an income-tax authority below them, either on their own or on an application made by the assessees.
• Section 108 (GST) - Section 108 gives the Chief Commissioner or Commissioner the authority to revise orders passed by lower GST officers to ensure they are legally correct and just.

Recent Case Law Observations (2023-2024)

GST Related Cases

• M/S L&T - IHI Consortium v. Union of India (2024) - Bombay HC quashed order for no hearing.
• P. Sagar v. State of Maharashtra (2024) - Violation of Section 75(4) CGST Act.
• State Bank of India v. Commercial Tax Officer (2024) - Summary orders quashed.

Income Tax Related Cases

• Application of Canara Bank v. DRT (2024) - Opportunity to be heard reinforced.