Pacific Shipping Pvt. Ltd. vs Chief Commissioner of Income Tax and Others

Arijit Pasayat, C.J.—Heard.

The petitioner calls in question the legality of the decision taken by the Chief Commissioner of Income Tax, New Delhi, as communicated by the Deputy Commissioner of Income Tax (Tech.-I), New Delhi, vide communication dated July 19, 1999 (annexure A).

The main grievance of the petitioner, who has been denied the benefits available u/s 80-O of the Income Tax Act, 1961 (in short the "Act"), is that before the decision was taken by the Chief Commissioner, New Delhi, he was not given an opportunity of being heard. The communication of the Deputy .Commissioner of Income Tax (annexure A) shows that the Chief Commissioner had taken the view that the assessee-petitioner''s case does not qualify for approval u/s 80-O of the Act.

On verification of the records learned counsel for the Revenue conceded that the Chief Commissioner had not really practically heard the assessed before passing the order. That being the position, it is a clear case of violation of principles of natural justice. Accordingly, the decision taken by the Chief Commissioner of Income Tax, New Delhi, that the assessor�s case does not qualify for approval u/s 80-O of the Act cannot be maintained.

We direct the Chief Commissioner, Delhi-I, to make a fresh adjudication. To avoid unnecessary delay let the petitioner appear before the Chief Commissioner, Delhi-I, without further notice on July 11, 2000, so that the Chief Commissioner can take up the matter. We make it clear that we have not expressed any opinion on the merits of the case.

This petition stands disposed of.