Order Date – 19 November 2024

Parties: M/S Dronacharya Sewa Sansthan Vs State Of Up And 2 Others

Facts –

• The Petitioner, M/S Dronacharya Sewa Sansthan, was served with a show cause notice r on May 15, 2023 seeking his reply within 30 days. 
• However, the Assessing Authority had at that stage itself chosen to not give any opportunity of hearing to the petitioner by mentioning "NA" against column description "Date of personal hearing".

Issue –

• Whether it is mandatory to grant personal hearing?

Order –

• The Divisional Bench of Hon’ble High Court observed that once it has been laid down by way of a principle of law that a person/assessee is not required to request for "opportunity of personal hearing" and it remained mandatory upon the Assessing Authority to afford such opportunity before passing an adverse order, the fact that the petitioner may have signified 'No' in the column meant to mark the assessee's choice to avail personal hearing, would bear no legal consequence.
• Principle of natural justice would commend to this Court to bind the authorities to always ensure to provide such opportunity of hearing. It has to be ensured that such opportunity is granted in real terms. The stand of the assessee may remain unclear unless minimal opportunity of hearing is first granted. Only thereafter, the explanation furnished may be rejected and demand created.
• Accordingly, the present writ petition is allowed.