MAGANBHAI NANABHAI PATEL vs. ASSESSMENT UNIT INCOME TAX DEP AND ORS.

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WP/3857/2024HC BombayHCBM01013899202404 April 2024Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE JUSTICE DR. NEELA KEDAR GOKHALE3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the impugned Assessment Order dated 29th February 2024 was liable to be quashed and set aside. The court found it undisputed that the petitioner was not given an opportunity to upload the documents and details requested by the Faceless Assessing Officer (FAO) during the personal hearing before the portal was closed. Therefore, the court quashed and set aside the assessment order and remanded the matter for denovo hearing. The AO was directed to make the portal available to the petitioner for uploading the requested documents and details within two weeks of the order being uploaded. The petitioner was to upload these documents within one week thereafter. The AO was to pass a fresh Assessment Order on or before 30th June 2024, dealing with all submissions, and a personal hearing was to be given at least five working days after issuing notice. The court explicitly clarified that no observations were made on the merits of the matter.

What were the facts?

The petitioner, Maganbhai Nanabhai Patel, challenged an Assessment Order dated 29th February 2024 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, for Assessment Year 2015-16. The petitioner's primary contention was that the Assessing Officer (AO) requested certain documents and details during a personal hearing, but before these could be uploaded to the system, the portal was closed. Consequently, the AO passed the assessment order without affording the petitioner an opportunity to submit the requested information. The Revenue, in its affidavit, admitted that the portal was closed as alleged and stated that the petitioner should not feel deprived of an adequate opportunity. The High Court was asked to pass an appropriate order.

What were the issues?

1. Whether the Assessment Order dated 29th February 2024, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961, is liable to be quashed and set aside on the ground that the petitioner was not afforded an opportunity to upload documents and details requested by the Faceless Assessing Officer (FAO) before the portal was closed? (Question of law and fact, turning on principles of natural justice and procedural fairness under the Act). Assessee's Contention: The AO asked for documents and details during a personal hearing, but the portal closed before the petitioner could upload them, leading to the impugned order without a proper opportunity to be heard. Revenue's Contention: The Revenue admitted that the portal was closed as alleged and stated that the petitioner should not feel that he was not given an adequate opportunity to explain the case, leaving the decision to the court.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

1/3 905-WP-3857-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 3857 OF 2024 Maganbhai Nanabhai Patel

….Petitioner V/s. Assessment Unit, Income Tax Department, National Faceless Assessment Centre, Delhi and Ors. …Respondents ---- Mr. Gunjan Kakkad i/b Mint & Confreres for Petitioner. Mr. Akhileshwar Sharma for Respondents-Revenue. ---- CORAM : K.R. SHRIRAM & DR. NEELA GOKHALE, JJ.

DATED : 4th APRIL 2024 P.C. :

1.

Petitioner is impugning an Assessment Order dated 29th February 2024 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (the Act) for Assessment Year (A.Y.) 2015-16. The primary ground is that during personal hearing the Assessing Officer (A.O.) asked for certain documents and details but before those documents and details could be provided by uploading in the system, the portal was closed. The A.O. without giving an opportunity to upload the documents and details which he had asked for, went ahead and passed the impugned Assessment Order dated 29th February 2024. 2. An affidavit in reply of one Mr. Sanjay Kamble, Assistant Commissioner of Income Tax, Panvel affirmed on 2nd April 2024 is filed. It is Purti Parab PURTI PRASAD PARAB PURTI PRASAD PARAB Date: 2024.04.05 17:36:34 +0530

2/3 905-WP-3857-2024.doc admitted that the portal was closed as alleged by petitioner. In the affidavit in reply it is stated that petitioner should not feel that he was not given adequate opportunity to explain the case and therefore the court may pass such order as it may deem fit.

3.

Since it is not disputed that petitioner was not given an opportunity to upload the documents and details which were asked for by the Faceless Assessing Officer (FAO) during the personal hearing, we hereby quash and set aside the impugned Assessment Order dated 29th February 2024. We remand the matter for denovo hearing. Within two weeks of this order being uploaded the A.O. shall make available the portal to petitioner to upload the documents and details which he asked for during the proceedings under advise to petitioner and petitioner’s advocate whose E- mail addresses are bhavingadhiya@rediffmail.com and gadhiya.bhavin@ gmail.com. Within one week thereafter petitioner shall upload all the documents and details which he was unable to upload earlier. On or before 30th June 2024 the Assessment Order shall be passed dealing with all submissions of petitioner. Before passing any order personal hearing shall be given to petitioner, notice whereof shall be communicated atleast five working days in advance.

4.

Petition disposed. Purti Parab

3/3 905-WP-3857-2024.doc

5.

We clarify that we have not made any observations on the merits of the matter. (DR. NEELA GOKHALE, J.) (K.R. SHRIRAM, J.) Purti Parab

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