Karnataka HC sets aside Income Tax Assessment Order Relying on Stock Exchange and Bank Data Without Providing Hearing Opportunity

The Karnataka High Court overturned an income tax assessment order that was based on stock exchange and bank data but issued without providing the taxpayer an opportunity for a hearing. The court emphasized the importance of giving taxpayers a chance to present their case before passing any final assessment. The decision reinforces procedural fairness in tax administration, ensuring that authorities follow due process in all tax assessments. The ruling sets a precedent for similar cases where administrative oversights might have denied taxpayers their legal rights.