Tvl. Shri Bharathi Weaves Vs Commercial Tax Officer
Date: July 20, 2025
Subject Matter
Assessment Order Passed a Day Before Personal Hearing Set Aside
Summary
The Madras High Court has set aside an assessment order against Tvl. Shri Bharathi Weaves, ruling that it was passed in violation of the principles of natural justice. The petitioner, a taxpayer, was issued a show cause notice for an incorrect tax liability in their annual return for the assessment year 2020-21. The petitioner requested additional time to submit documents, and the respondent, the Commercial Tax Officer, scheduled a personal hearing for February 11, 2025.
However, the respondent passed the assessment order prematurely on February 10, 2025, a day before the scheduled hearing. The petitioner contended that this denial of a personal hearing nullified the entire proceedings. The respondent's counsel fairly admitted to the court that the order was indeed passed prior to the date of the personal hearing.
The court held that the premature issuance of the order deprived the taxpayer of a fundamental opportunity to present their defense and documents, which is essential for fair adjudication. Consequently, the impugned order dated February 10, 2025, was set aside. The court remanded the matter back to the respondent for fresh consideration. The petitioner is given three weeks to file a fresh reply with all necessary documents. Following this, the respondent must issue a clear 14-day notice for a personal hearing and then pass a speaking order on the merits of the case.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
1. This writ petition has been filed challenging the impugned assessment order dated 10.02.2025 passed by the respondent.
2. Mr. C.Harsha Raj, learned Special Government Pleader takes notice on behalf of the respondent. By consent of both the parties, this writ petition is taken up for final disposal at the stage of admission itself.
3. The learned counsel for the petitioner would submit that in this case, a show cause notice dated 23.11.2024 was issued to the petitioner, alleging that the petitioner had failed to declare their correct tax liability while filing their annual returns for the assessment year 2020-21. In regard to this, the petitioner filed their representation through online portal on 25.12.2024, seeking for an additional time extension of 15 days, to submit all the requisite documents. After considering the said representation, the respondent issued a reminder notice on 06.02.2025 and fixed the date of personal hearing on 11.02.2025. However, without providing an opportunity of personal hearing, the respondent passed the impugned assessment order one day prior to the said hearing i.e., on 10.02.2025, which is a clear violation of principles of natural justice. Hence, he prayed this Court to set aside the impugned assessment order dated 10.02.2025 and remit the matter to the respondent to put forth their contentions before the authority.
4. On the other hand, the learned Special Government Pleader appearing for the respondent fairly admitted that since the time limit was provided to the petitioner till 11.02.2025 to submit all the required documents, it appears that the respondent passed the impugned assessment order on 10.02.2025, which is prior to the date of personal hearing. Therefore, he requested this Court to remit the matter back to the respondent for fresh consideration, after providing opportunity of hearing to the petitioner.
5. Heard the learned counsel for the petitioner and the learned Special Government Pleader appearing for the respondent and also perused the materials available on record.
6. In the case on hand, it is evident that a show cause notice dated 23.11.2024 was issued to the petitioner, in respect of incorrect tax liability while filing their annual returns for the assessment year 2020-21. In order to produce the required documents, the petitioner sought further extension of 15 days and the respondent also granted further time and fixed the personal hearing on 11.02.2025. However, on perusal of the records, it is clear and evident that the respondent has passed the impugned assessment order on 10.02.2025, i.e., one day prior to the date of personal hearing. Thus, without providing an opportunity of personal hearing, the respondent passed the impugned order, which is a clear violation of principles of natural justice.
7. In view of the above, this Court is inclined to set aside the impugned order dated 10.02.2025, since the petitioner was not provided with an opportunity of personal hearing to put forth their contentions.
8. Accordingly, this Court passes the following order:
(i) The impugned order dated 10.02.2025 is set aside and the matter is remanded to the respondent for fresh consideration.
(ii) The petitioner shall file their reply/objection along with the required documents, if any, within a period of three weeks from the date of payment of amount as stated above.
(iii) On filing of such reply/objection by the petitioner, the respondent shall consider the same and issue a 14 days clear notice, by fixing the date of personal hearing, to the petitioner and thereafter, pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible.
With the above directions, this writ petition is disposed. No costs.