Allahabad High Court Quashes Tax Orders Over Violation of Natural Justice Principles

The Allahabad High Court held that a tax order cannot be considered valid if the taxpayer has not been granted a proper opportunity of hearing, as this practice is an explicit violation of the principles of natural justice.

Pramod Kumar Chaurasiya had filed a writ petition in the Allahabad High Court, challenging two orders dated November 10, 2025, and August 24, 2024, passed by the State Tax Officer, Khand-1, Balrampur. The petition was filed under Article 226 of the Constitution of India.

The High Court heard the case and noted that the petitioner was not given a proper opportunity to be heard before the impugned orders were passed. Additionally, no further notice was issued addressing the petitioner.

The court considered this a clear contravention of the principles of natural justice and hence quashed the impugned orders dated November 10, 2025, and August 24, 2024. Remand the case back to the tax authorities for fresh adjudication of the case with directions to issue a fresh show-cause notice (SCN) to the petitioner. After receiving the notice, the petitioner has been asked to file a detailed reply within two weeks of the date of receipt.

Once the petitioner furnishes the reply, the tax authorities must issue another notice scheduling the date of a personal hearing. Once the hearing is properly conducted, the tax authorities must issue a final order with reasonable directions considering the same. With these directions, the high court closed the case.