Ramesh Chandra and Ors vs The National Faceless Assessment Centre, Income Tax Department, Ministry of Finance and Ors

Ramesh Chandra S/o Shri Ram Chandra, Aged About 64 Years, 4/204, Kamla Nehru Nagar Pali Marwar 306401 (Rajasthan). ----Petitioner Versus 1. The National Faceless Assessment Centre, Income Tax Department, Ministry Of Finance, Inside Jawaharlal Nehru Stadium, New Delhi. 2. The Income Tax Officer, Ward 1, Income Tax Department, Pali. ----Respondents

and

(2) D.B. Civil Writ Petition No. 9307/2022

M/s Mahaveer Infra Engineering Pvt. Ltd., Having Its Registered Office At Flat No 703, B Wing, Mangal Deep Complex, Pal Balaji Road, Jodhpur 342008, Through Its Authorized Representative Kishore Jain, Age 52 Years S/o Dharam Raj Jain, Resident Of B- 708, Mangal Deep Complex, Pal Balaji Road, Jodhpur 342008. ----Petitioner Versus 1. The National Faceless Assessment Centre, Income Tax Department, Ministry Of Finance, Inside Jawaharlal Nehru Stadium, New Delhi. 2. The Income Tax Officer, Income Tax Department, Barmer. ----Respondents

For Petitioner(s) : Mr. Anjay Kothari. For Respondent(s) : Mr. K.K. Bissa.

HON'BLE MR. JUSTICE SANDEEP MEHTA

HON'BLE MR. JUSTICE KULDEEP MATHUR

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Order

21/07/2022

These two writ petitions involve identical questions of

facts and law and hence the same are being decided by this

common order.

The petitioners have approached this Court through

these writ petitions for assailing the impugned proceedings under

the Income Tax Act, whereby assessment made by the respondent

authorities qua the petitioners were reopened and fresh final

assessment orders dated 31.03.2022 (For assessment year 2013-

14) (in D.B.C.W.P. No.6009/2022) and 24.03.2022 & 25.03.2022

(For assessment years 2016-17 and 2013-14 respectively) (in

D.B.C.W.P. No.9307/2022) were passed allegedly without adhering

to the principles of natural justice.

Facts in D.B.C.W.P. No.6009/2022

A notice under Section 148 of the Income Tax Act dated

31.03.2021 was issued by the respondent No.2- Income Tax

Officer to the petitioner proposing to re-assess the income of the

petitioner for the assessment year 2013-14. The petitioner filed

reply dated 16.07.2021 to such notice claiming that there was no

occasion to initiate the re-assessment proceedings. Another

notice was issued to the petitioner by the respondent No.2 under

Section 142 (1) of the Income Tax Act dated 23.11.2021 to show

cause and provide the relevant documents/accounts by

30.11.2021 to the Department. On 29.03.2022 a show cause

notice was issued to the petitioner requiring him to show cause as

to why the proposed variation should not be made and a reply was

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sought from the petitioner by 23.59 hours of 30.03.2022 and an

option was given to the petitioner to seek personal hearing

through video conferencing. The petitioner filed a detailed reply on

the very same day i.e. 29.03.2022 furnishing therewith all details

supported by the relevant material. The petitioner also made a

request for video-conferencing by availing the option given on the

portal itself. However, the respondent No.2, without providing

opportunity of hearing to the petitioner proceeded to pass the

order dated 31.03.2022 (Annexure-12) rejecting the reply of the

petitioner and issued a demand notice to the tune of

Rs.64,24,250/- which is assailed in this writ petition.

Facts in D.B.C.W.P. No.9307/2022

Notices under Section 148 of the Income Tax Act dated

30.03.2021 were issued by the respondent No.2- Income Tax

Officer to the petitioner proposing to re-assess the income of the

petitioner for the assessment years 2013-14 & 2016-17. Prior to

that on 16.03.2022, show cause notices were issued to the

petitioner requiring it to show cause as to why the proposed

variation should not be made for the assessment years concerned

and replies were sought from the petitioner by 23.59 hours of

19.03.2022 and an option was given to the petitioner to seek

personal hearing through video conferencing. On 19.03.2022,

option for submitting reply and to seek personal hearing on the

"Dashboard of the Income Tax Portal" was found to be closed by

the petitioner on or about 12:30 PM, i.e. well before the time limit

given in the above mentioned show cause notices that is, 23:59

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hours of 19.03.2022. Due to untimely/premature closure of the

window, the petitioner was unable to file the reply and was also

prevented from seeking an opportunity of personal hearing.

Aggrieved by the arbitrary action of the respondents, the

petitioner submitted a reply on the very same day i.e. on

19.03.2022, through e-mail furnishing therewith, all details

supported by the relevant material and raising a grievance

regarding premature closure of window before the time limit

specified in the notices. However, the respondent No.2, without

providing opportunity of hearing to the petitioner proceeded to

pass the impugned assessment orders dated 24.03.2022 &

25.03.2022 (Annexure-6 & 7 respectively) rejecting the reply of

the petitioner which are assailed in this writ petition.

Shri Kothari urged that admittedly the impugned

assessment orders have been passed in gross violation of

principles of natural justice justice because the rightful/bonafide

request made by the petitioners for personal hearing through

video conferencing/opening window on portal for submitting

relevant documents and replies were not considered at all. In this

regard, he has drawn the court's attention to the show cause

notice dated 29.03.2022 (Annex.6 to D.B.C.W.P. No.6009/2022),

wherein an option was given to the petitioner to request for

personal hearing and the reply to the same submitted on the very

same day (Annex.7 to D.B.C.W.P. No.6009/2022). He has also

drawn the attention of the court to the document (Annex.5 to

D.B.C.B.W. No.9307/2022), whereby a grievance was raised that

the window for submitting reply to the show cause notices dated

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16.03.2022 was closed before the stipulated time and thus, proper

opportunity of hearing should be provided to the petitioner before

proceeding further. He submits despite the above

communications, the respondents have passed the impugned

assessment orders, which are liable to be struck down on the

ground of being violative of principles of natural justice.

Mr. K.K. Bissa, learned counsel representing the

respondents, has filed reply to D.B.C.W.P. No.9307/2022, wherein

the fact that the window for e-submission on e-filing portal was

closed before the stipulated time is neither accepted nor denied.

The fact that opportunity of availing the remedy of personal

hearing through video-conferencing was not provided to either of

the petitioners is admitted by the respondents. However, Mr.

Bissa submits that as an alternative remedy of filing appeal is

available to the petitioners, these writ petitions are not

maintainable.

Having considered the submissions advanced at bar

and having gone through the material available on record, we are

of the firm opinion that the impugned proceedings suffer from

gross violation of principles of natural justice and thus, the writ

petitioners cannot be thrown out on the ground of alternative

remedy. Hence, the impugned assessment orders 31.03.2022

(Annexure-12 to D.B.C.W.P.6009/2022) and dated 24.03.2022 &

25.03.2022 (Annexure-6 & 7 respectively to D.B.C.B.W.

No.9307/2022) are declared invalid and are hereby quashed and

set aside. The respondent authorities shall provide reasonable

opportunity to the petitioner to submit detailed replies, if they so

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desire. Thereafter, opportunity of personal hearing through video-

conferencing shall be provided to the petitioners; the replies and

the arguments advanced shall be objectively considered by the

assessing authorities and fresh assessment orders shall be

passed. The entire proceedings as directed above shall be

completed within a period of two months from the date of this

order.

The writ petitions are allowed in these terms.

(KULDEEP MATHUR),J (SANDEEP MEHTA),J

72-73-Pramod/-

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