BHADRISH JAYANTILAL SHETH vs. INCOME TAX OFFICER WRAD 34(1) KOL AND ORS

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WPA/8232/2022HC CalcuttaWBCHCA017331202217 May 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN3 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the impugned assessment order dated March 30, 2022, was not sustainable in law. The reasoning was that the order was passed before the expiry of the time granted to the petitioner to file a reply to the show-cause notice concerning the draft assessment. Furthermore, the Tribunal acknowledged the petitioner's inability to file the objection due to technical glitches in the Department's portal. Consequently, the assessment order was set aside. The case was remanded back to the Assessing Officer to pass a fresh assessment order in accordance with law. This fresh order must be passed after giving the petitioner an opportunity to file a reply to the show-cause notice dated March 29, 2022, within seven days from the date of the order, and by observing the principles of natural justice. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The petitioner, Bhadrish Jayantilal Sheth, challenged an assessment order dated March 30, 2022, passed by the Income Tax Officer, Ward 34(1), Kolkata, for assessment year 2013-2014. The challenge was under Section 147 read with Section 144B of the Income Tax Act, 1961. The petitioner alleged a violation of natural justice because he was not given an opportunity to reply to a show-cause notice dated March 29, 2022. This notice, issued through the Department's e-filing account, required a reply by 23:17:59 hours on March 30, 2022. However, the Assessing Officer passed the assessment order at 15:17:08 hours on the same day, before the deadline. The petitioner claimed he could not file his reply due to technical glitches on the Department's portal.

What were the issues?

1. Whether the assessment order dated March 30, 2022, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for assessment year 2013-2014 is sustainable in law, considering the alleged violation of the principle of natural justice by not providing the petitioner an adequate opportunity to file a reply to the show-cause-notice dated March 29, 2022. Assessee's Contention: The petitioner argued that the assessment order was passed prematurely, before the expiry of the time granted to file a reply to the show-cause notice, and that technical glitches prevented him from filing his response. This constituted a violation of the principle of natural justice. Revenue's Contention: The learned Advocate for the respondents could not deny the petitioner's allegations, which were substantiated by the record.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B

AI-generated summary — verify with the full judgment below

17.5.2022 ks WPA 8232 of 2022 sl. 46 Bhadrish Jayantilal Sheth Vs Income Tax Officer, Ward 34(1), Kolkata & Ors. Mr. Avra Majumder, Sk. Md. Bilwal Hossain … For the Petitioner. Mr. Om Narayan Rai … For the Respondents. Heard learned Advocates appearing for the parties. In this writ petition, petitioner has challenged the impugned assessment order dated 30th March, 2022 under Section 147 read with Section 144B of the Income Tax Act, 1961 relating to assessment year 2013-2014 on the ground of violation of principle of natural justice by not providing the petitioner an opportunity to file reply to the show-cause-notice dated 29th March, 2022 by which petitioner was asked to give his reply/show-cause-notice to the proposed draft assesment through Department’s Register e-filing account by 23:17:59 hours IST of 30th March, 2022, on the ground that before expiry of such time granted to file such reply/objection to the aforesaid show- cause-notice/draft assessment, the respondent/Assessing Officer passed the impugned assessment order on 30th March, 2022 at 15:17:08 IST and it is the specific case of the petitioner as appears from paragraph 5 of the pleadings in the writ petition

2 that the petitioner could not file reply or objection to the aforesaid show-cause-notice due to technical glitches in the portal of the Department. Learned Advocate appearing for the respondents could not deny the aforesaid allegation of the petitioner, which are substantiated by record. Considering the submission of the parties, I am of the view that the impugned assessment order dated 30th March, 2022, which has been passed before the expiry of the time granted by the Assessing Officer to the petitioner to file reply to the aforesasid show- cause-notice relating to the draft assessment in question and further in view of the technical glitches in the portal of the Department by which petitioner could not file his aforesaid objection, the impugned assessment order is not sustainable in law and the same is set aside and the case is remanded back to the Assessing Officer concerned to pass a fresh assessment order in accordance with law after giving an opportunity to the petitioner to file reply to the aforesaid show-cause-notice dated 29th March, 2022, which shall be filed by the petitioner within seven days from date and shall pass a reasoned and speaking order and by observing principle of natural justice.

3 With these observations, this writ petition being WPA 8232 of 2022 is disposed of. ( Md. Nizamuddin, J. )

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