Failure to Consider Income Tax Assessee’s Request for Personal Hearing Amounts to Violation of Natural Justice: Kerala HC Rules in favour of Federal Bank

The Kerala High Court ruled that denying a personal hearing to an income tax assessee amounts to a violation of natural justice. In this case, the Federal Bank had sought a personal hearing during the reassessment proceedings under the Income Tax Act. The assessing officer rejected this request without valid reasoning, leading the bank to approach the court. The court emphasized the importance of procedural fairness and observed that ignoring such a request deprives the assessee of the opportunity to present its case effectively. The judgment underscored that personal hearings are integral to upholding the principles of natural justice and ensuring transparency in tax assessments. Consequently, the court directed the authorities to reconsider the matter after granting the bank a personal hearing. This decision reinforces the right of taxpayers to fair treatment in administrative and judicial proceedings.