BOATMAN TECH PRIVATE LIMITED vs. NATIONAL FACELESS ASSESSMENT CENTER, NEW DELHI

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W.P.(C)/6021/2024HC DelhiDLHC01023714202406 May 2024Bench: HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV,HON'BLE MR. JUSTICE YASHWANT VARMA2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court dismissed the writ petition. The Court noted that the assessment proceedings commenced on 01.06.2023, and a Show Cause Notice was issued on 21.03.2024, with a response due by 23.03.2024. The petitioner sought an adjournment to file its reply by 27.03.2024. The Assessing Officer observed that this request was made at the fag end of the assessment period and proceeded to pass the final assessment order on 27.03.2024. The Court found that the petitioner has a statutory right to raise all contentions by way of a statutory appeal. Therefore, in the given facts and circumstances, the Court found no justification to entertain the writ petition. The dismissal was without prejudice to the rights and contentions of the parties on merits.

What were the facts?

The petitioner, Boatman Tech Private Limited, filed a writ petition challenging the assessment order dated 27.03.2024 for Assessment Year 2022-23, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961. The petitioner contended that it was not afforded adequate opportunity of hearing. The assessment commenced on 01.06.2023. A Show Cause Notice (SCN) was issued on 21.03.2024, requiring a response by 23.03.2024. The petitioner sought an adjournment to file its reply by 27.03.2024. The Assessing Officer noted that the adjournment request was made at the last moment before the assessment completion deadline and proceeded to pass the final assessment order on 27.03.2024.

What were the issues?

1. Whether the petitioner was denied an adequate opportunity of hearing in the assessment proceedings for AY 2022-23, as contemplated under Section 144B of the Income Tax Act, 1961? Assessee's Contention: The petitioner argued that it was not provided with an adequate opportunity of hearing and sought a writ of certiorari to quash the assessment order and a direction to consider its response to the Show Cause Notice and afford an opportunity of hearing through video conference. Revenue's Contention: The judgment does not explicitly record the revenue's contentions. However, the court's reasoning implies that the revenue's action of proceeding with the assessment was based on the petitioner's delay in responding to the SCN and the impending deadline for assessment completion.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

$~9 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6021/2024 & CM APPL. 25013/2024 (Stay)

BOATMAN TECH PRIVATE LIMITED ..... Petitioner

Through: Mr. Chidambaram P. Subbaiah

and Mr. S.S. Tomar, Advs.

versus

NATIONAL FACELESS ASSESSMENT CENTER, NEW DELHI

..... Respondent Through: Mr. Debesh Panda, SSC along with Ms. Zehra Khan, Mr. Vikramaditya Singh, JSCs, Mr. Ojaswa Pathak, Ms. Anauntta Shankar and Mr. Vineet Gupta, Advs.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA

HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

O R D E R %

06.05.2024

1.

This writ petition has been filed seeking the following reliefs:- “(a) issue a writ of and/or order in the nature of Certiorarified Mandamus, for quashing the impugned assessment order under section 143(3) read with section 144B of the I.T. Act, 1961 dated 27.03.2024 (Annexure P-14) for AY 2022-23;

(b) direct the Respondent to consider the Petitioner's response dated 27.03.2024 to Show Cause Notice (Annexure P-9) and also afford an opportunity of hearing through video conference; and

(c) such other order or orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case.”

2.

The petitioner challenges the final assessment as made for Assessment Year [‘AY’] 2022-23 and asserts that adequate opportunity of hearing was not provided. 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 14/05/2024 at 20:04:18

3.

Having examined the record and on hearing learned counsel appearing for the writ petitioner, we find that the assessment was commenced as far back as on 01 June 2023. On 21 March 2024, a Show Cause Notice [‘SCN’] was issued by the respondents seeking a response from the petitioner with respect to certain proposed variations. In terms of that notice, the petitioner was to submit a reply by 23 March 2024. However, it appears to have moved an application for adjournment and sought time to file a reply up to 27 March 2024. 4. The Assessing Officer [‘AO’] noted that the prayer for adjournment was made at the very fag end of the period within which assessment was to be completed. It accordingly proceeded to frame a final assessment order on 27 March 2024. 5. Bearing the aforesaid facts in mind coupled with the indisputable fact that the petitioner would have a right to raise all contentions by way of a statutory appeal, we find, in the facts and circumstances of the case, no justification to entertain the writ petition. It shall, accordingly, stand dismissed. 6. The present order shall be without prejudice to the rights and contentions of respective parties on merits.

YASHWANT VARMA, J.

PURUSHAINDRA KUMAR KAURAV, J. MAY 06, 2024/RW 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 14/05/2024 at 20:04:18

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