Opportunity of hearing to be provided to the assessee in case of variation indemand order

Last updated: 07 January 2023

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The Gujarat High Court has quashed a demand notice and assessment order issued to Map Refoils India Limited, amounting to INR 92.42 crores. The court found that the Revenue Department failed to provide the assessee with an opportunity for a personal hearing, which is a breach of natural justice principles. The ruling emphasises the importance of adhering to Section 144B of the Income Tax Act, 1961, which mandates such hearings when variations prejudicial to the assessee are proposed in a draft assessment order.

Court :
Gujarat High Court

Brief :
The Hon'ble High Court of Gujarat in Map Refoils India Limited v. National E—assessment Centre, Delhi [R/Special Civil Application No. 16261 of 2021datedDecember 16, 2022]quashed and set aside the demand notice and the assessment ordermaking an addition of INR 92.42 crores without providing the opportunity of hearing to the assessee. Held that, the Revenue Department should make assessments following the provisions of Section 144B of the Income Tax Act, 1961("the IT Act")in order to provide an opportunity of hearing to the assessee.

Citation :
R/Special Civil Application No. 16261 of 2021 dated December 16, 2022

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