A requested hearing matters before a tax penalty order
Perfetti Van Melle India Pvt Ltd v Assessment Unit | Punjab and Haryana High Court | 22 September 2026 | CWP 9316 of 2025
The issue
The Income Tax Department passed a penalty order under section 270A even though the taxpayer had requested a personal hearing. The Punjab and Haryana High Court considered whether that procedure could stand under section 274.
What happened
The parties did not dispute that Perfetti Van Melle had asked for a personal hearing before the penalty order dated 20 March 2025, and that none was granted. That narrow, admitted fact drove the result.
What the court decided
The High Court set aside the penalty order. It allowed the department to pass a fresh, reasoned order, but only after giving the taxpayer an opportunity of hearing in accordance with law. The court did not decide whether the alleged under reporting or misreporting ultimately justified a penalty.
Why it matters
Penalty proceedings demand a fair chance to answer the proposed charge. A hearing request should be addressed before a final adverse order is made. The judgment is especially useful where the case record clearly shows both the request and the lack of a hearing.
Practical takeaway
Preserve the hearing request, portal acknowledgement and correspondence. If a penalty order follows without the requested hearing, raise the procedural defect promptly. Setting aside the order sends the matter back for a lawful decision; it does not extinguish the department’s ability to reconsider the penalty.
Judgment
Published for general information on 28 September 2026. Read the full judgment and the applicable assessment year before relying on the ruling in a specific matter.
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