Providing opportunity of hearing ensures natural justice and allows Revenue Department to pass appropriate orders

Last updated: 24 February 2023

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The Allahabad High Court has ruled that tax authorities must provide an opportunity for a personal hearing to assessees, even if they initially decline it. The court found that failing to offer this hearing violates natural justice principles. The Revenue Department's order, which raised a demand of over £100 million against M/s Mohan Agencies, was set aside because the assessee was not given this crucial opportunity. The case has been sent back to the Revenue Department to issue a fresh notice and provide the required hearing.

Court :
Allahabad High Court

Brief :
The Hon'ble Allahabad High Court in M/s Mohan Agencies v. State of U.P. And Another [Writ Tax No. 58 of 2023 dated February 13, 2023] has set aside the order passed by the Revenue Department, on the grounds that the opportunity of personal hearing was not given to the assessee, as the same was not opted by the assessee in reply to the Show Cause Notice ("theSCN"). Held that, providing the opportunity of hearing would ensure observance of rules of natural justice and allow the Respondent to pass appropriate and reasoned orders in order to serve the interest of justice and allow a better appreciation to arise at the appeal stage. Remitted the matter back to the Revenue Department.

Citation :
Writ Tax No. 58 of 2023 dated February 13, 2023

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

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3 Years PLAN

4999

(Excl. of GST ₹899)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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