SUNNY GARG vs. NATIONAL FACELESS ASSESSMENT CENTER AND ANOTHER

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CWP/12407/2023HC Punjab & HaryanaPHHC01072574202301 June 2023Bench: MS. JUSTICE RITU BAHRI,MRS. JUSTICE MANISHA BATRA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the impugned assessment order, notice of demand, and notices initiating penalty proceedings dated 25.05.2023 were passed without providing the petitioner an opportunity of hearing through video conferencing, despite the petitioner's request for the same on 23.05.2023. The Court found that after 18.05.2023, there was no mention of any adjournment granted for the petitioner to appear via video conferencing. Consequently, the Court set aside the impugned orders and notices. The matter was remanded to the assessing officer with a direction to provide one opportunity of hearing to the petitioner through video conferencing, as per the petitioner's request, and thereafter, pass a speaking order in accordance with the law. No issue was expressly left undecided.

What were the facts?

The petitioner, Sunny Garg, is challenging assessment order dated 25.05.2023, notice of demand dated 25.05.2023, and notices initiating penalty proceedings under Section 271AAC and Section 270A of the Income Tax Act, 1961, all dated 25.05.2023. The petitioner had sought an opportunity for a personal hearing through video conference on 23.05.2023. However, the assessment order was passed on 25.05.2023 without providing this requested hearing. The judgment notes that after 18.05.2023, there is no record of any adjournment granted to the petitioner for a video conferencing hearing.

What were the issues?

1. Whether the assessment order dated 25.05.2023, notice of demand dated 25.05.2023, and notices for penalty proceedings under Sections 271AAC and 270A of the Income Tax Act, 1961, are liable to be quashed on the ground that they were passed without providing the petitioner an opportunity of personal hearing through video conference, as requested. Assessee's contention: The petitioner argued that the assessment order and related notices were passed without granting the requested opportunity for a personal hearing via video conference, which was sought on 23.05.2023. The petitioner contended that the assessment order was passed on 25.05.2023 without fulfilling this procedural requirement. Revenue's contention: The judgment does not record any specific contentions made by the respondents (National Faceless Assessment Centre, Delhi and another).

Which sections of the Income-tax Act were involved?

Section 271AAC,Section 270A

AI-generated summary — verify with the full judgment below

CWP No.12407 of 2023 (O&M) 2023:PHHC:080345-DB -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CWP No.12407 of 2023 (O&M) Date of decision: 01.06.2023

Sunny Garg .....Petitioner Versus National Faceless Assessment Centre, Delhi and another ....Respondents CORAM:HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Nikhil Goyal, Advocate, and Mr. Rana Gurtej Singh, Advocate, for the petitioner. *** Ritu Bahri, J. 1. The petitioner is seeking quashing of the assessment order dated 25.05.2023 (Annexure P-4), notice of demand dated 25.05.2023 (Annexure P-5), notice initiating penalty proceedings under Section 271AAC of the Income Tax Act, 1961 (Annexure P-6) and notice initiating penalty proceedings under Section 270A of the Act dated 25.05.2023 (Annexure P- 7). 2. Notice of motion. 3. At this stage, Ms. Pridhi Jaswinder Sandhu, Senior Standing Counsel, accepts notice on behalf of the respondents. 4. A perusal of Annexure P-3 shows that on 23.05.2023, the assessee had sought opportunity of personal hearing through video conference and the status of the case was open. However, the impugned assessment order (Annexure P-4) has been passed on 25.05.2023 without providing any AJAY PRASHER 2023.06.05 10:08 I attest to the accuracy and integrity of this document

CWP No.12407 of 2023 (O&M) 2023:PHHC:080345-DB -2- opportunity of hearing to the petitioner through video conferencing. In this order, details of the opportunities given to the petitioner have been reflected. After 18.05.2023, it has not been mentioned as to when adjournment was given to the petitioner to appear through video conferencing. 5. In view of the said fact, the impugned orders/notices dated 25.05.2023 (Annexures P-4, P-5, P-6 and P-7) are set aside and the matter is remanded to the assessing officer to provide one opportunity of hearing to the petitioner through video conferencing as per the request made by the petitioner vide Annexure P-3 and thereafter, pass a speaking order in accordance with law. 6. Allowed accordingly. (RITU BAHRI)

JUDGE

(MANISHA BATRA) 01.06.2023 JUDGE ajp Whether speaking/reasoned: Yes/No Whether reportable : Yes/No AJAY PRASHER 2023.06.05 10:08 I attest to the accuracy and integrity of this document

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