YOGESH MANGALSEN BEHL vs. UNION OF INDIA AND ORS

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WP/15217/2023HC BombayHCBM01035895202313 January 2026Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court decided to quash and set aside the Assessment Order dated April 30, 2023, and the Demand Notice dated April 30, 2023. The Court's decision was based on the fair stand taken by the Revenue, who, after taking instructions from the Assessing Officer, agreed to provide the petitioner with a personal hearing and pass a fresh assessment order. The Court explicitly stated that it had not examined the merits of the matter. The matter was remanded back to the Jurisdictional Assessing Officer to grant a personal hearing to the petitioner and thereafter pass a reasoned order under Section 143(3). The notice for the personal hearing is to be sent to the petitioner's email ID 'yogeshbehl005@gmail.com'. The entire exercise is to be completed expeditiously, within 12 weeks from the uploading of the order. The Court also noted that the petitioner is free to make his submissions before the Assessing Officer.

What were the facts?

The petitioner, Yogesh Mangalsen Behl, filed a Writ Petition challenging an Assessment Order dated April 30, 2023, passed under Section 143(3) and a Demand Notice dated April 30, 2023, issued under Section 156 of the Income Tax Act, 1961. The petitioner contended that the assessment order was passed in breach of natural justice principles. Specifically, he claimed that although he requested a personal hearing via Video Conferencing (VC) for April 28, 2023, he later found on the Income Tax Portal that the VC was scheduled for April 29, 2023, at 4:00 p.m. He alleged he received no intimation or VC link for this hearing. The Revenue, in its affidavits, suggested a VC link was emailed on April 28, 2023, at 9:34 p.m. However, the petitioner stated this email was sent to an outdated email address, which he had since changed and updated for subsequent assessment years.

What were the issues?

1. Whether the Assessment Order dated April 30, 2023, passed under Section 143(3) of the Income Tax Act, 1961, is liable to be set aside on the ground of breach of principles of natural justice, specifically concerning the non-receipt of proper intimation and VC link for a personal hearing. Assessee's Contention: The petitioner argued that he was denied a proper personal hearing due to the lack of intimation and a VC link for the scheduled hearing on April 29, 2023, thereby violating principles of natural justice. He relied on the fact that the email providing the link was sent to an incorrect address. Revenue's Contention: The Revenue contended that a VC link was indeed provided to the petitioner via email on April 28, 2023, at 9:34 p.m., informing him of the hearing scheduled for April 29, 2023, at 4:00 p.m. They did not explicitly name any authorities or precedents.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 156

AI-generated summary — verify with the full judgment below

14.wp.15217.2023.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.15217 OF 2023 Yogesh Mangalsen Behl .. Petitioner Versus Union of India & Ors. .. Respondents Mr.Sanket S. Bora a/w Deepak Sharma, Arrchena Shetty, Vidhi K. Punmiya, Amiya R. Das i/b SPCM Legal, Advocates for the Petitioner. Mr.Vikas T. Khanchandani, Advocate for the Revenue/Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : JANUARY 13, 2026 P. C. 1. The above Writ Petition seeks to challenge the Assessment Order dated 30th April 2023 passed under Section 143(3) and the Demand Notice issued under Section 156 dated 30th April 2023. Both, the order, as well as the notice are issued under the relevant provisions of the Income Tax Act, 1961. Page 1 of 4 JANUARY 13, 2026 Utkarsh UTKARSH KAKASAHEB BHALERAO Digitally signed by UTKARSH KAKASAHEB BHALERAO Date: 2026.01.14 12:26:53 +0530

14.wp.15217.2023.doc

2.

The short ground on which the assessment order is challenged is that it is passed in breach of principles of natural justice. According to the Petitioner, he sought for a personal hearing through Video Conferencing (V.C.) on 27th April 2023 and mentioned the desired date of the V.C. as 28th April 2023. According to the Petitioner, he learn’t from the Income Tax Portal that the date for V.C. is fixed for 29th April 2023 at 4.00 p.m. However, no intimation was forwarded to the Petitioner to participate in the V.C. and no V.C. link was also provided to the Petitioner. It is on this short ground that the Petitioner seeks to set aside the impugned Assessment Order and the impugned Demand Notice. 3. There are two affidavits-in-reply filed by the Department. These affidavits seem to suggest that a V.C. link was provided to the Petitioner through e-mail on 28th April 2023 at 9.34 p.m. informing the Petitioner that a hearing would be given through V.C. on 29th April 2023 at 4.00 p.m. However, according to the Petitioner, this e-mail was never received by the Petitioner because it was sent to an e-mail address which was no longer the e-mail address of the Petitioner and which was changed. This has been duly reflected by the Petitioner in the Income Tax Returns filed for subsequent assessment years. Page 2 of 4 JANUARY 13, 2026 Utkarsh

14.wp.15217.2023.doc

4.

Since this was the dispute before us, we asked the learned advocate appearing on behalf of the Revenue to take instructions from Assessing Officer whether he could give a hearing to the Petitioner and thereafter pass a fresh Assessment Order. 5. The learned advocate appearing on behalf of the Revenue, on taking instructions from the concerned Assessing Officer, stated that the Petitioner would be given a personal hearing and thereafter a fresh Assessment Order would be passed. 6. In view of the fair stand taken by the Revenue, we hereby quash and set aside the Assessment Order dated 30th April 2023 passed under Section 143(3) as well as the Demand Notice issued under Section 156 dated 30th April 2023. 7. We now remand the matter back to the Jurisdictional Assessing Officer for passing a fresh order. The Jurisdictional Assessing Officer shall give a personal hearing to the Petitioner and only thereafter pass a reasoned order under Section 143(3). Notice of the personal hearing shall be given by the Jurisdictional Assessing Officer to the Page 3 of 4 JANUARY 13, 2026 Utkarsh

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Petitioner on e-mail ID “yogeshbehl005@gmail.com”. The Petitioner is free to make whatever submissions he wants before the Jurisdictional Assessing Officer. This entire exercise shall be carried out as expeditiously as possible, and in any event within a period of 12 weeks from the date of uploading of this order on the High Court’s website. 8. We may hasten to add that we have not examined the merits of the matter and which shall be decided by the Jurisdictional Officer in accordance with law. 9. The Writ Petition is disposed of in the aforesaid terms. However, there shall be no order as to costs. 10. 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. [FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] Page 4 of 4 JANUARY 13, 2026 Utkarsh

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