Kerala High Court Quashes Faceless Assessment Order, Grants Fresh Hearing Opportunity

Technical issues in video conferencing link lead to denial of hearing; Court orders reconsideration of appeal

In a significant ruling, the Kerala High Court has quashed an impugned order under the Income Tax Act, 1961, concerning a faceless assessment, thereby granting the petitioner, Anish Thomas, a fresh opportunity for a hearing. The judgment, delivered by Justice Ziyad Rahman A.A., arose from a writ petition filed by Thomas against the rejection of his appeal without proper hearing due to technical issues.

The petitioner, residing in the United States at the time, faced challenges accessing the video conferencing link provided for the hearing on July 23, 2025. Despite receiving a notice for the hearing, the petitioner claimed the link was not a hyperlink and was subsequently received late during midnight, making it impossible to attend the scheduled session.

The petitioner argued that these technical difficulties, coupled with the time zone difference, hindered his ability to utilize the hearing opportunity. Furthermore, he had submitted a written submission and raised grievances regarding the non-visible video conferencing link the following day, seeking additional time.

The respondents contended that the writ petition was beyond the territorial jurisdiction of the Kerala High Court, as the assessing and appellate authorities were located in Delhi, and the assessment was linked to a PAN address in Noida, Uttar Pradesh. They further argued that reasonable opportunities had been granted to the petitioner.

Justice Ziyad Rahman A.A., upon reviewing the case details, acknowledged that the petitioner is a permanent resident of Kerala, substantiated by his Aadhar card. Additionally, the court noted that it had previously entertained a related writ petition concerning the same appeal.

Considering these factors and the technical issues beyond the petitioner’s control, the court ruled in favor of granting a fresh hearing opportunity. The judgment emphasized the importance of ensuring fair hearing opportunities, especially under faceless assessment procedures, where technical barriers can impede effective communication.

Consequently, the court quashed the impugned order and directed the respondent authorities to pass fresh orders on the appeal after providing the petitioner a proper hearing opportunity. This decision underscores the judiciary’s commitment to upholding procedural fairness and addressing technical barriers in modern assessment processes.

Bottom Line:

Faceless assessment under Income Tax Act, 1961 - Opportunity for hearing not effectively provided due to technical issues - Court extended a further opportunity to the petitioner to be heard and directed fresh orders on the appeal.

Statutory provision(s): Income Tax Act, 1961

Anish Thomas v. Addl./Joint/Deputy/Asst. Commissioner of Income, (Kerala) : Law Finder Doc Id # 2811270