ABC DE DEVELOPERS AND REALTORS PRIVATE LIMITED( Represented by its Director Shri. Abdul Vaheed vs. Income Tax Officer

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WP(C)/14413/2024HC KeralaKLHC01099247202408 April 2024Bench: HONOURABLE MR. JUSTICE D. K. SINGH5 pages
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What did the High Court hold?

The High Court held that the impugned assessment order suffers from a violation of the principles of natural justice. The petitioner had explicitly opted for a hearing through video conferencing in their reply dated March 23, 2024, to the additional show cause notice dated March 22, 2024. Since this opportunity was not provided before the assessment order was passed, the order was deemed to be vitiated. The Court set aside the impugned assessment order and directed the Assessing Authority to provide a link to the petitioner for addressing their arguments and pass appropriate orders in accordance with the law expeditiously. The petitioner was directed to utilize the opportunity provided in compliance with this judgment. No issue was expressly left undecided.

What were the facts?

The petitioner, ABC DE Developers and Realtors Private Limited, filed a writ petition challenging an assessment order (Ext.P16). The petitioner sought to quash this order and requested the respondent to redo the assessment proceedings after providing a personal hearing through video conference, as stipulated. The petitioner had previously availed an opportunity for a video conference hearing on March 15, 2024. Subsequently, a show cause notice was issued on March 22, 2024, to which the petitioner replied on March 23, 2024, again requesting a video conference hearing. However, the impugned assessment order was passed without affording this requested hearing.

What were the issues?

1. Whether the impugned assessment order, passed without providing a personal hearing through video conference after the petitioner's request in response to an additional show cause notice, violates the principles of natural justice, particularly in light of Section 69C of the Income Tax Act? Assessee's Contentions: The petitioner argued that they had opted for a hearing through video conferencing in their reply to the additional show cause notice dated March 22, 2024. They contended that the assessment order was passed without affording them this opportunity, thus violating the principles of natural justice. They relied on the stipulation for personal hearings through video conference. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue.

Which sections of the Income-tax Act were involved?

Section 69C

AI-generated summary — verify with the full judgment below

WPC No.14413 of 2024 1

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 8TH DAY OF APRIL 2024 / 19TH CHAITHRA, 1946 WP(C) NO. 14413 OF 2024 PETITIONER:

ABC DE DEVELOPERS AND REALTORS PRIVATE LIMITED( REPRE- SENTED BY ITS DIRECTOR SHRI. ABDUL VAHEED KODIYIL) AGED 58 YEARS, SUHARAS HOUSE, NEAR SDOT, TALIPARAMBA - PO, KANNUR, PIN - 670141

BY ADVS. K.N.SREEKUMARAN P.J.ANILKUMAR (A-1768) N.SANTHOSHKUMAR RESPONDENTS: 1 INCOME TAX OFFICER, WARD-I AAYKAR BHAVAN, MELE CHOVVA, KANNOTHUMCHAL, KANNUR, PIN – 670006. 2 ASSISTANT DIRECTOR OF INCOME TAX,INCOME TAX DEPARTMENT, CENTRAL PROCESSING CENTRE, BENGALURU, PIN - 560500 3 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF IN- COME TAX/INCOME TAX OFFICER(ASSESSMENT UNIT) ASSESSMENT UNIT, INCOME TAX DEPARTMENT, NATIONAL FACE- LESS ASSESSMENT CENTRE, NEW DELHI, PIN – 100001. 4 ADDITIONAL/JOINT/DEPUTY/ASSISTANT COMMISSIONER OF IN- COME TAX/INCOME TAX OFFICER, NATIONAL FACELESS ASSESSMENT CENTRE INCOME TAX DEPART- MENT, NEW DELHI, PIN - 100001 OTHER PRESENT:

SRI. CHRISTOPHER ABRAHAM- SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.04.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.14413 of 2024 2 JUDGMENT The present Writ Petition has been filed seeking the following reliefs: i) Call for the records leading to Ext.P16 and quash the same by issuance of a writ of certiorari or any other appropriate writ, direction or order found fit and proper by this Hon'ble Court.

ii) Direct the 2nd respondent to redo the assessment proceedings after affording a personnel hearing through video conference as stipulated in Ext.P17 by considering the documents filed on the portal including Income Tax Returns & Audited Financials in accordance with Sec.69C of the Act.

iii) Issue any other appropriate writ, direction or order found fit and proper by this Hon'ble Court onthe facts and in the circumstances of the case.

2.

The details of the opportunities given as extracted in the impugned assessment order would disclose that after the petitioner filed a reply to the show cause notice the petitioner availed the opportunity of addressing the assessing authority through video conferencing on 15th March 2024. 3. After the hearing got concluded, the petitioner was again issued a show cause notice on 22nd March 2023 to which the petitioner filed a reply on 23rd March 2024 and again requested for hearing through video conferencing facility. However, the impugned assessment order has been passed without providing an opportunity of hearing after the petitioner was issued with the show cause notice dated 22nd March

WPC No.14413 of 2024 3 2024. 4. Considering the fact that the petitioner opted for an opportunity of hearing through video conferencing while filing reply to the additional show cause notice dated 22nd March 2024 and the petitioner was not afforded an opportunity of hearing and the impugned assessment order has been passed, I am of the considered view that the said impugned assessment order suffers from violation of principles of natural justice. The petitioner opted for hearing through video conferencing in its reply dated 23rd March 2024 to the additional show cause notice dated 22nd March 2024. Thus the impugned assessment order is set aside. 5. The Assessing Authority is directed to provide link to the petitioner for addressing the arguments and pass appropriate orders in accordance with law, expeditiously. The petitioner shall make use of an opportunity to be given in compliance of this judgment. With the aforesaid direction, the present Writ Petition stands allowed.

Sd/-DINESH KUMAR SINGH, JUDGE

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WPC No.14413 of 2024 4 APPENDIX OF WP(C) 14413/2024

PETITIONER EXHIBITS Exhibit-P 1 TRUE COPY OF THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2018-19 DATED 27..06..2020 Exhibit-P 2 TRUE COPY OF THE INCOME TAX RETURN FILED ON 23..07..2020 VIDE E-ACKNOWLEDGEMENT NO:413888381230720 ALONG WITH THE COMPUTATION OF INCOME Exhibit-P 3 TRUE COPY OF THE INTIMATION U/S.143(1) DATED 30..07..2020 BEARING DIN: CPC/1920/A6/2004078053 ISSUED BY THE 2ND RE- SPONDENT Exhibit-P 4 TRUE COPY OF THE NOTICE U/S 148 DATED 30..03..2023 BEARING DIN: ITBA/AST/S/148/1/2022-23/1051712898(1) ISSUED BY THE 1ST RESPONDENT Exhibit-P 5 TRUE COPY OF THE NOTICE DATED 10..07..2023 WITH DIN:ITBA/AST/F/143(2)_5/2023- 24/1054254933(1) ISSUED BY THE 3RD RESPONDENT Exhibit-P 6 TRUE COPY OF THE RESPONSE ALONG WITH SUPPORT- ING ANNEXURE FILED BY THE PETITIONER DATED 17..07..2023 AGAINST EXT-P5 Exhibit-P 7 TRUE COPY OF THE E NOTICE DATED 28..07..2023 VIDE DIN:ITBA/AST/F/142(1)2023- 24/1054708571(1) ISSUED BY THE 3RD RESPONDENT Exhibit-P 8 TRUE COPY OF THE RESPONSE ALONG WITH RELEVANT ANNEXURE FILED BY THE PETITIONER DATED 09..08..2023 AGAINST EXT-P7 Exhibit-P 9 TRUE COPY OF THE NOTICE DATED 29..02..2024 WITH DIN:ITBA/AST/F/147(SCN)/2023- 24/1061774804(1) Exhibit-P 10 TRUE COPY OF THE DOCUMENTS RECOVERED U/S.132 OF THE ACT FROM THE PREMISES OF SHRI. KODIYIL MOHAMMED THASLIM BEARING NUMBER CHN/CLT/132/2019-20/ABC,T-II/A1 Exhibit-P 11 TRUE COPY OF THE REPLY DATED 04..03..2024 FILED THROUGH ONLINE PORTAL REBUTTING THE AL- LEGATIONS RAISED ON EXHIBIT P-9

WPC No.14413 of 2024 5 Exhibit-P 12 TRUE COPY OF THE WRITTEN SUBMISSION FILED BEFORE THE 3RD RESPONDENT THROUGH ONLINE PORTAL DATED 13..03..2024 Exhibit -P13 TRUE COPY OF THE NOTICE DATED 22..03..2024 WITH DIN:ITBA/AST/F/147(SCN)/2023- 24/1063193940(1) ISSUED BY THE 3RD RESPONDENT Exhibit-P 14 TRUE COPY OF THE REPLY DATED 23..03..2024 FILED BY THE PETITIONER AGAINST EXHBIT-P13 THROUGH ONLINE PORTAL Exhibit-P 15 TRUE COPY OF THE COMMUNICATION DATED 23..03..2024 DIN:ITBA/AST/F/17/2023- 24/1063254090(1) REJECTING PERSONNEL HEARING THROUGH VIDEO CONFERENCE. Exhibit-P 16 TRUE COPY OF THE ASSESSMENT ORDER BEARING DIN: ITBA/AST/S/183/2023-24/1063436842(1) DATED 27..03..2024 FOR THE ASSESSMENT YEAR 2019-20 Exhibit -P17 TRUE COPY OF THE STANDARD OPERATING PROCE- DURE(SOP) FOR ASSESSMENT UNIT(AU) UNDER THE FACELESS ASSESSMENT PROVISIONS OF SECTION144B OF THE INCOME TAX ACT DATED 03..08..2022 IS- SUED BY CBDT Exhibit-P18 TRUE COPY OF THE JUDGMENT IN GENESIS INSTI- TUTE OF MEDICAL SCIENCE PRIVATE LIMITED VS INCOME TAX OFFICER, W.P.(C) 21424/2023 DATED 24..11..2023

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