M/S. EMBEE SIFTWARE PVT LTD vs. ASSESSMENT UNIT,INCOME TAX DEPARTMENT AND ORS

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WPA/27406/2022HC CalcuttaWBCHCA055216202219 December 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal, considering the facts and circumstances and the submissions of the parties, found merit in the petitioner's contention. The Tribunal noted that the petitioner had filed a reply to the show-cause notice on the same day the assessment order was passed, and this reply was apparently ignored. The respondent's counsel was unable to refute this claim. Consequently, in the interest of justice, the Tribunal set aside the impugned assessment order dated September 26, 2022. The matter was remanded back to the Assessing Officer to pass a fresh speaking order in accordance with law. This fresh order is to be passed after providing the petitioner an opportunity of hearing and after taking into consideration the petitioner's objections to the show-cause notice. The Assessing Officer was directed to pass the fresh order within eight weeks from the date of communication of this order.

What were the facts?

The petitioner, M/s. Embee Software Pvt. Ltd., filed a writ petition challenging an assessment order dated September 26, 2022, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, for assessment year 2020-21. The petitioner contended that the order was passed in violation of the principles of natural justice and without application of mind. Specifically, the petitioner argued that their reply to a show-cause notice, filed on the same day as the assessment order at 12:03 p.m. on the department's portal, was ignored before the order was passed at 1:41 p.m. The respondent's counsel could not contradict this allegation.

What were the issues?

1. Whether the assessment order dated September 26, 2022, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, for assessment year 2020-21, is liable to be set aside on the ground of violation of the principles of natural justice and non-application of mind. Assessee's Contentions: The petitioner argued that the assessment order was passed in violation of natural justice as their reply to the show-cause notice, filed on the same day as the order, was ignored. They contended that this demonstrated a non-application of mind by the Assessing Officer. Revenue's Contentions: The respondent's counsel could not contradict the petitioner's allegation regarding the ignored reply.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

19.12.2022. p.b. Sl. No.57. WPA 27406 of 2022 M/s. Embee Software Pvt. Ltd. Vs. Assessment Unit Income Department & Ors. Mr. Avra Mazumder, Mr. Binayak Gupta, Mr. Suman Bhowmik. ……..for the petitioner. Mr. Om Narayan Rai. ……..for the respondent. Heard learned advocates appearing for the parties. By this writ petitioner, petitioner has challenged the impugned assessment order under Section 143(3) read with Section 144B of the Income Tax Act, 1961 dated 26th September, 2022, relating to assessment year 2020-21, on the ground of violation of principle of natural justice and the aforesaid impugned order on non-application of mind by contending that before passing of the impugned assessment order dated 26th September, 2022 at 13-41 p.m., petitioner had filed reply to the show-cause notice on the very same day at 12-03 p.m. in the official portal of the department which is matter of record which was ignored. Mr. Rai, learned advocate appearing on behalf of the respondent could not contradict the aforesaid allegation of the petitioner which is substantiated by the record.

2 Considering the facts and circumstances of this case as appears from record and submission of the parties, in the interest of justice, this writ petition being WPA 27406 of 2022 is disposed of by setting aside the aforesaid impugned order dated 26th September, 2022 and the matter is remanded back to the Assessing Officer concerned to pass a fresh speaking order in accordance with law after giving an opportunity of hearing to the petitioner or its authorized representatives and by taking into consideration the objection of the petitioner to the show-cause being Annexure P-4 to the writ petition within eight weeks from the date of communication of this order. (Md. Nizamuddin, J.)

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