GLOBAL VECTRA HELICORP LIMITED vs. ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

W.P.(C) 5912/2024

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$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5912/2024, CM Nos.24420/2024 & CM No.24421/2024 %

Date of Decision: 26.04.2024 GLOBAL VECTRA HELICORP LIMITED ..... Petitioner Through: Mr. Salil Kapoor, Mr. S. Lalchandani, Mr. Ananya Kapoor, Mr. Vibhu Jain & Mr. Utkarsh K. Gupta, Advs. Versus ASSESSMENT UNIT, NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

..... Respondent Through: Mr. Siddhartha Sinha, Ms. Dacchita Shahi & Ms. Anuja Pethia, Advs. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MS. JUSTICE TARA VITASTA GANJU

VIBHU BAKHRU, J (ORAL). 1. Issue notice. 2. The learned counsel appearing for the respondent accepts notice. 3. With the consent of the parties, the present petition is taken up for hearing. 4. The petitioner has filed the present petition impugning the assessment order dated 27.03.2024 (hereafter the impugned assessment order) passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (hereafter the Act). Additionally, the petitioner also impugns the demand raised under Section 156 of the Act pursuant to the impugned assessment order in respect of Assessment Year 2022-23 (hereafter the impugned Assessment Year). 5. Mr. Kapoor, learned counsel appearing for the petitioner has confined Digitally Signed By:DUSHYANT RAWAL Signing Date:03.05.2024 Signature Not Verified

W.P.(C) 5912/2024

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the challenge in the present petition solely on the ground that the petitioner had not been provided sufficient opportunity to be heard. 6. The petitioner was issued a show cause notice dated 05.03.2024 (hereafter the SCN), inter alia, proposing certain additions to the income returned and calling upon the petitioner to respond to the same. The SCN spans over ten pages and raises various grounds. 7. Mr. Kapoor submits that despite the wide nature of allegations and issued raised in the SCN, the petitioner was called upon to submit a response by 17:24 hours on 09.03.2024. He states that the time provided was extremely short considering that there were two holidays after 05.03.2024. He also referred to the Standard Operating Procedure (hereafter SOP) dated 03.08.2022 framed by the National Faceless Assessment Centre, Delhi which requires that atleast seven days time be provided to the assessee for responding to the Show Cause Notice. 8. The relevant extract of the said SOP is set out below:

“N.1.3 To ensure adherence to the principles of natural justice and reasonable opportunity to the assessee, timelines to be given for obtaining response to the SCN shall be: N.1.3.1 Response time of 7 days from the issue of SCN.”

W.P.(C) 5912/2024

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“The Assessee wishes to humbly and respectfully mention that show cause notice dated March 05, 2024 has been issued by your goodself, seeking information/documents by March 09, 2024. Your goodself would appreciate that only 3 working days-time have been provided to the Assessee to collate and furnish the details (comprises of voluminous workings/documents) on large amount of transactions. However, in order to duly cooperate with the tax authorities, the Assessee is furnishing, vide this submission maximum information at our end to demonstrate its claim. Should your goodself require any further formation, please do let us know, and the Assessee be provided additional time to furnish further required information’. Should your goodself opine contrary to the above submission of the Assessee, then an opportunity to prepare a factual/legal submission and represent the matter via video conferencing/personal hearing, be provided to the Assessee in its defense.” [Emphasis added]

W.P.(C) 5912/2024

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“(vii) in a case where a variation is proposed in the income or loss determination proposal or the draft order, and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per such income or loss determination proposal, the assessee or his authorized representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income-tax authority of the relevant unit;

(viii) where the request for personal hearing has been received, the income-tax authority of relevant unit shall allow such hearing, through National Faceless Assessment Centre, which shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, to the extent technologically feasible, in accordance with the procedure laid down by the Board.”

W.P.(C) 5912/2024

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where statute does not provide for an opportunity to be heard, the same is one of the principles of natural justice. 15. Undisputedly, in the present case, the Act expressly provided for the concerned Unit to afford the assessee an opportunity of hearing. In this view, we find merit in Mr. Kapoor’s contention that the impugned assessment order falls foul of the principles of natural justice and the statutory requirement of affording the assessee an opportunity of being heard. 16. Accordingly, we set aside the impugned assessment order and remand the matter to the concerned Assessing Officer to consider afresh after affording a reasonable opportunity to be heard through video conferencing as is required in terms of Section 144B(6)(viii) of the Act. 17. The petitioner / assessee may also file written submissions within the period of one week from today. 18. The petition is disposed of in the aforesaid terms. All pending applications are also disposed of.

VIBHU BAKHRU, J

TARA VITASTA GANJU, J APRIL 26, 2024 ‘gsr’

Click here to check corrigendum, if any Digitally Signed By:DUSHYANT RAWAL Signing Date:03.05.2024 Signature Not Verified