RADHA STORES PRIVATE LIMITED AND ANR. vs. UNION OF INDIA AND ORS.

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WPA/23501/2022HC CalcuttaWBCHCA047754202229 November 2022Bench: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the petitioner should not be made to suffer due to a technical fault in the department's system, unless the respondents could specifically prove with records that the objection was uploaded beyond the granted time. Considering the facts, circumstances, and the principle of natural justice, the Tribunal set aside the impugned order dated March 30, 2022, passed under Section 148A(d). The matter was remanded back to the Assessing Officer to pass a fresh speaking order in accordance with law. The Assessing Officer was directed to provide an opportunity of hearing to the petitioner or their authorized representative within eight weeks from the date of communication of the order. No specific issue was left undecided.

What were the facts?

The petitioner, Radha Styores Pvt. Ltd. & Anr., challenged an order dated March 30, 2022, passed under Section 148A(d) of the Income Tax Act, 1961, for assessment year 2018-19. The challenge was based on the alleged violation of the principle of natural justice. The petitioner contended that their objection to the notice under Section 148A(b) was filed within the stipulated time, uploaded on the income tax department's website on March 28, 2022, at 7:30 p.m., before the deadline of March 28, 2022, at 11:59 p.m. The revenue, represented by Mr. Dutt, submitted that the objection was received by the department on March 29, 2022, possibly due to a technical snag.

What were the issues?

1. Whether the impugned order dated March 30, 2022, passed under Section 148A(d) of the Income Tax Act, 1961, is liable to be set aside for violating the principle of natural justice, specifically by not considering the petitioner's objection filed within the prescribed time limit for assessment year 2018-19? Assessee's Contention: The petitioner argued that their objection was uploaded on the official website on March 28, 2022, at 7:30 p.m., which was within the deadline of March 28, 2022, at 11:59 p.m. Therefore, not considering this objection violated natural justice. Revenue's Contention: The revenue submitted that the objection was received by the department on March 29, 2022, suggesting a potential technical issue, but did not explicitly state that the objection was filed beyond the granted time.

Which sections of the Income-tax Act were involved?

Section 148A(d),Section 148A(b)

AI-generated summary — verify with the full judgment below

29.11.2022. p.b. Sl. No.17. WPA 23501 of 2022 Radha Styores Pvt. Ltd. & Anr. Vs. Union of India & Ors. Mr. Himangshu Kr. Ray. ……..for the petitioner. Mr. Aryak Dutt. ……..for the UOI. Heard learned advocates appearing for the parties. By this writ petition, petitioner has challenged the impugned order dated 30th March, 2022 under Section 148A(d) of the Income Tax Act, 1961 relating to assessment year 2018-19, on the ground of violation of principle of natural justice by not taking into consideration the petitioners’ objection to the notice under Section 148A(b) of the Act which was filed within the time asked for by the Assessing Officer, petitioner has produced the record to show that the aforesaid objection was uploaded in the official website of the income tax department on 28th March, 2022 at 7-30 p.m. and the time to make such objection was till 28th March, 2022 at 11-59 hours. Mr. Dutt, learned advocate appearing for the income tax authorities submits that the aforesaid uploaded objection was received by the department on 29th March, 2022 may be due to technical snag in the system to which

2 my view is that for the technical fault is in the department’s system, petitioner should not be suffered and victimized respect unless the respondents’ specific case with specific record is that the aforesaid objection of the petitioner was uploaded beyond the time granted. Considering the facts and circumstances of this case as appears from record and in the interest of justice and taking into consideration the principle of observation of natural justice the aforesaid impugned order dated 30th March, 2022 under Section 148A(d) is set aside and the matter is remanded back to the assessing officer to pass a fresh speaking order in accordance with law after giving an opportunity of hearing to the petitioner or its authorized representatives within a period of eight weeks from the date of communication of this order. With this observation and direction, this writ petition being WPA 23501 of 2022 is disposed of. (Md. Nizamuddin, J.)

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