Republic Day: How the Constitution influences your tax rights
In any adjudicatory proceedings including the income-tax proceedings, before drawing any adverse inference or conclusion, the affected party must be given a notice to show cause against the proposed inference or conclusion and seek his/her explanation. It is a sine qua non of the right of fair hearing.
Any order passed without giving notice is against the principles of natural justice and is void ab initio. (ii) Hearing: Any order passed by the adjudicating authority without providing the reasonable opportunity of being heard to the person affected by it adversely, shall be invalid and must be set aside.
Taxpayers can challenge arbitrary demands or incorrect refund adjustments by invoking these constitutional principles, ensuring their right to a fair hearing is respected. So, as we celebrate Republic Day, let’s also appreciate its relevance in empowering us with essential tax rights.
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