LEELABIHARI FINANCE PRIVATE LIMITED vs. INCOME TAXOFFICER WARD 15(1), DELHI & ANR.

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W.P.(C)/3677/2025HC DelhiDLHC01015476202525 March 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
AI SummaryRemanded

What did the High Court hold?

The Delhi High Court held that the impugned assessment order dated March 5, 2025, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for AY 2016-17, is set aside. The Court found that the assessment order itself acknowledged the failure to conduct a requested video conference hearing due to technical difficulties. This failure, as noted in paragraph 4.1 of the assessment order, meant the assessee was not provided with a sufficient opportunity to be heard. The Court relied on its earlier decision in Global Vectra Helecorp Limited v. Assessment Unit, National Faceless Assessment Centre, Delhi. Consequently, the matter was remanded to the Assessment Unit to consider it afresh. The Assessment Unit is required to afford the petitioner an opportunity to be heard through video conferencing within three weeks from the date of the order, and a fresh assessment order is to be passed not later than six weeks thereafter. The petition was allowed in these terms.

What were the facts?

The petitioner, Leelabihari Finance Private Limited, filed a writ petition challenging an assessment order dated March 5, 2025, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for Assessment Year 2016-17. The petitioner's challenge was confined to the ground that it was not provided with a sufficient opportunity to be heard. The assessment order itself noted that a requested video conference hearing could not be conducted due to technical difficulties. The respondents, Income Tax Officer Ward 15(1), Delhi, and another, accepted notice. The matter was taken up for hearing with the consent of both parties.

What were the issues?

1. Whether the assessment order passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for AY 2016-17 is liable to be set aside on the ground that the assessee was not provided with a sufficient opportunity to be heard, specifically concerning the failure to conduct a requested video conference hearing due to technical difficulties. Assessee's contention: The petitioner argued that the assessment order should be set aside because it was not afforded a sufficient opportunity to be heard. This was based on the assessment order's own admission that a requested video conference hearing could not be conducted due to technical issues, thereby violating the principles of natural justice and the provisions of Section 144B(6)(viii) of the Act. Revenue's contention: The judgment does not record any specific contentions made by the revenue on this issue. However, by accepting notice and appearing before the court, the revenue implicitly contested the petitioner's claim.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 144B(6)(viii)

AI-generated summary — verify with the full judgment below

$~125 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 3677/2025 & CM APPL. 17245-46/2025 LEELABIHARI FINANCE PRIVATE LIMITED .....Petitioner Through: Mr Ruchesh Sinha, Ms Monalisa Maity, Ms Shilpa Choudhary and Mr Akash Saini, Advocates. versus INCOME TAXOFFICER WARD 15(1), DELHI & ANR. .....Respondents Through: Mr Ruchir Bhatia, SSC, Mr Anant Mann, JSC Ms Aditi Sabharwal and Mr Abhishek Anand, Advocates. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE TEJAS KARIA O R D E R % 25.03.2025 1. Issue notice. The learned counsel for the respondents accepts notice. 2. With the consent of the learned counsel for the parties, the present petition is taken up for hearing. 3. The petitioner has filed the present petition impugning an assessment order dated 05.03.2025 [impugned assessment order] passed under Section 147 read with Section 144B of the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY] 2016-17. 4. The learned counsel for the petitioner has confined his challenge to the impugned assessment order on the ground that the petitioner has not been provided sufficient opportunity to be heard. 5. Paragraph no.4.1 of the impugned assessment order clearly indicates that the assessee had requested for a hearing through video conferencing but due to technical difficulties, the said hearing could not be provided. Paragraph no. 4.1 of the impugned order is set out below: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:47:11

“4.1. Update the table of opportunities given ( at point 2 above) to include the details of SCN or additional SCN issued and further notices including personal hearing through VC given.: In this case, the assessee has offered VC during the course of scrutiny proceedings but due to technical difficulties in net connectivities in interior part, it could not be conducted and discussed the issue thoroughly in assessment order with its submission filed by the assessee.” [Emphasis added] 6. Concededly, the said issue is covered in favour of the petitioner by an earlier decision of this court in Global Vectra Helecorp Limited v. Assessment Unit, National Faceless Assessment Centre, Delhi: Neutral Citation: 2024 DHC 3303-DB. 7. Accordingly, the impugned assessment order is set aside and the matter is remanded to the Assessment Unit to consider afresh after affording the petitioner an opportunity to be heard through video conferencing as required in terms of Section 144B(6)(viii) of the Act within a period of three weeks from date and an assessment order would be passed not later than six weeks thereafter. 8. The petition is allowed in abovesaid terms. Pending applications also stand disposed of. VIBHU BAKHRU, J TEJAS KARIA, J MARCH 25, 2025 M Click here to check corrigendum, if any This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:47:11

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