[Opinion] Whether Requirement of giving an Assessee a Reasonable Opportunity of Personal Hearing is Mandatory?

Mukesh Kohli – [2023] 149 taxmann.com 72 (Article)

1. Introduction

Now a days we have seen number of Assessment orders made under Faceless Assessment with out providing personal hearing to the Assessee or his/her authorised representative.

Let us see whether providing personal hearing to the assessee or to his/her authorised representative is mandatory.

The provision as per Income Tax Act is as under: –

2. Provision as per Income Tax Act

As per Section 144B(6)(vi), a person shall not be required to appear either personally or through authorised representative in connection with any proceedings before any unit [i.e., AU, VU, TU or RU] set up u/s. 144B.

However, as per s. 144B(6)(vii), the assessee (or his authorised representative) may request for personal hearing so as to make his oral submissions or present his case before the income-tax authority of the relevant unit in a case where a variation is proposed in the income or loss determination proposal or the draft order, and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per such income or loss determination proposal.

Consequently, in view of the provisions of s. 144B (6) (viii), where the request for personal hearing has been received, the income-tax authority of relevant unit shall allow such hearing, through NFAC, which shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the CBDT.

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