VIJAY RAVJIBHAI GAJRA vs. ASSESSMENT UNIT INCOME TAX DEPARTMENT TRH PR COMMISSIONER OF INCOME TAX AND ANR

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WP/5192/2026HC BombayHCBM01017331202627 August 20264 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the impugned Assessment Order dated March 24, 2026, could not be sustained as it was passed without granting the petitioner a personal hearing, despite a specific request. This constituted a breach of the principles of natural justice. Consequently, the Court set aside the Assessment Order and the consequential Notice of Demand. The matter was remanded back to the concerned Faceless Assessing Officer for a fresh hearing, commencing from the stage of the Show Cause Notice. The Assessing Officer was directed to grant a personal hearing to the petitioner's authorized representative with at least 5 days' prior notice. The petitioner's representative was expected to appear without seeking adjournments, except in unavoidable circumstances. After hearing the petitioner and considering their submissions, a fresh, speaking assessment order was to be passed within 3 months of the order being brought to the Assessing Officer's notice. The Rule was made absolute, and the Writ Petition was disposed of accordingly.

What were the facts?

The petitioner, Vijay Ravijibhai Gajra, filed a writ petition challenging an Assessment Order dated March 24, 2026, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, for Assessment Year 2024-25, along with a consequential Notice of Demand under Section 156. The petitioner contended that the order was passed in breach of natural justice as a requested personal hearing was not granted and submissions were not considered. The petitioner had requested a personal hearing on March 11, 2026, was informed of a hearing on March 13, 2026, but then requested an adjournment to March 16, 2026, due to a conflict. The petitioner emailed the concerned officer on March 13, 2026, but the assessment order was passed on March 24, 2026, without a personal hearing.

What were the issues?

1. Whether the Assessment Order dated March 24, 2026, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, is liable to be quashed and set aside for breach of principles of natural justice, specifically for not granting a personal hearing to the petitioner as requested. Assessee's Contentions: The petitioner argued that the assessment order was passed in violation of natural justice principles because a personal hearing, though requested, was not provided, and the petitioner's submissions were not considered. The petitioner highlighted the timeline of their requests for a personal hearing and the subsequent passing of the order without affording this opportunity. Revenue's Contentions: The judgment does not record any specific contentions made by the Revenue. However, the facts indicate the Revenue proceeded to pass the assessment order.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B,Section 156

AI-generated summary — verify with the full judgment below

3.wp.5192.2026.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.5192 OF 2026 Vijay Ravijibhai Gajra .. Petitioner Versus Assessment Unit, Income Tax Department & Anr. .. Respondents Ms. Ritika Agarwal i/b ACELEGAL, Advocate for the Petitioner. Mr. Arjun Gupta, Advocate for the Revenue/Respondent.

CORAM: B. P. COLABAWALLA &

FARHAN P. DUBASH, JJ. DATE: AUGUST 27, 2026 P. C. 1. Rule. Respondents waive service. With the consent of parties, Rule made returnable forthwith and heard finally. 2. The above Writ Petition is filed seeking to quash and set aside the Assessment Order dated 24th March 2026 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (for short “the Act”) for Assessment Year 2024-25 along with the consequential Notice of Demand issued under Section 156 of the Act. It Page 1 of 4 AUGUST 27, 2026 Utkarsh UTKARSH KAKASAHEB BHALERAO Digitally signed by UTKARSH KAKASAHEB BHALERAO Date: 2026.08.28 18:01:23 +0530

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is the case of the Petitioner that the Assessment Order has been passed in breach of principles of natural justice in as much as no personal hearing was given to the Petitioner though asked for and the submissions canvassed by the Petitioner were not considered in the impugned Assessment Order. 3. We have heard Ms.Agarwal the learned counsel appearing on behalf of the Petitioner, as well as Mr. Gupta, the learned counsel appearing on behalf of the Revenue. 4. It is not in dispute that on 11th March 2026 the Petitioner requested for a personal hearing before the Faceless Assessing Officer. On 11th March 2026 itself the Petitioner was informed that a personal hearing would be granted to the Petitioner on 13th March 2026 at 4.30 p.m. Once this was informed to the Petitioner, the Petitioner on the very next day, namely 12th March 2026 raised a grievance on the Income Tax Portal that the authorized representative of the Petitioner would be in some difficulty on 13th March 2026, and therefore, requested that the personal hearing be fixed on 16th March 2026. This grievance was resolved by informing the Petitioner that the Petitioner should email the concerned Assessing Officer at samadhan.faceless.assessment@ Page 2 of 4 AUGUST 27, 2026 Utkarsh

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incometax.gov.in . Accordingly, on 13th March 2026 at 2.30 p.m., the Petitioner sent the requisite email on the above mentioned email address. However it appears that without giving any opportunity to the Petitioner of a personal hearing, the Assessment Order has been passed on 24th March 2026. 5. Once these are the facts before us, we are of the view that the impugned Assessment Order cannot be sustained as it has been passed without giving a personal hearing to the Petitioner though specifically asked for. In these circumstances, we hereby set aside the Assessment Order dated 24th March 2026 and also the Notice of Demand issued under Section 156 of the Act. 6. We now remand the matter back to the concerned Faceless Assessing Officer for a hearing afresh. The hearing shall commence from the stage of the Show Cause Notice. The Assessing Officer shall give a personal hearing to the authorized representative of the Petitioner by giving them at least 5 days prior notice. The authorized representative of the Petitioner shall make it convenient to appear on the date and time fixed for the personal hearing and shall not seek an adjournment, except in unavoidable and/or exceptionable circumstances. After hearing the Page 3 of 4 AUGUST 27, 2026 Utkarsh

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Petitioner and considering their submissions, oral and/or written, the Assessing Officer shall pass a fresh Assessment Order. It is needless to clarify that the fresh order shall be a speaking order. 7. This entire exercise shall be completed by the Assessing Officer within a period of 3 months from the date of this order being brought to the notice of the concerned Faceless Assessing Officer. 8. Rule is made absolute in the aforesaid terms, and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs. 9. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [FARHAN P. DUBASH, J.] [B. P. COLABAWALLA, J.] Page 4 of 4 AUGUST 27, 2026 Utkarsh

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