MSP STEEL AND POWER LIMITED vs. NATIONAL FACELESS ASSESSMENT CENTRE DELHI (EARLIER NATIONAL E-ASSESSMENT CENTRE, DELHI) AND ORS.

PDF · subscribers
WPO/1089/2021HC CalcuttaWBCHCO002998202109 November 2021Bench: HON'BLE JUSTICE MD. NIZAMUDDIN3 pages
AI SummaryRemanded

What did the High Court hold?

The Hon'ble High Court set aside the impugned assessment order dated September 28, 2021. The Court found that the facts presented by the petitioner, supported by documentary evidence, indicated a violation of the principles of natural justice. Specifically, the petitioner was not afforded an effective opportunity to respond to the show cause notice due to the premature closure of the official portal. The revenue authorities could not contradict these facts. Consequently, the Court directed the assessing officer to pass a fresh assessment order in accordance with the law, ensuring that the petitioner is given an effective opportunity of hearing and that the principles of natural justice are duly observed. No other issues were expressly left undecided.

What were the facts?

The petitioner, MSP Steel and Power Limited, challenged an assessment order dated September 28, 2021, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for assessment year 2013-14. The petitioner contended that the order was passed in gross violation of the principles of natural justice, as it was not afforded an effective opportunity of hearing. A show cause notice was issued on September 27, 2021, requiring a response by 23:59 hours on September 28, 2021. However, the petitioner claims the official portal for filing the reply closed earlier in the evening. Correspondence dated September 28, 2021, at 8:21 p.m. from the petitioner to the authorities highlighted difficulties in filing the response. The impugned assessment order was received by the petitioner on September 28, 2021, at 9:03 p.m., despite the extended deadline and portal closure.

What were the issues?

1. Whether the assessment order dated September 28, 2021, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, for assessment year 2013-14 is liable to be set aside on the ground of violation of principles of natural justice by not affording an effective opportunity of hearing to the petitioner? Assessee's Contention: The petitioner argued that despite being granted time until 23:59 hours on September 28, 2021, to respond to the show cause notice, the official portal for filing the reply was closed prematurely. This prevented the petitioner from submitting its response, leading to a gross violation of natural justice. The petitioner relied on correspondence dated September 28, 2021, and the timing of the assessment order's issuance to substantiate its claim. Revenue's Contention: The learned advocate for the respondent Income Tax Authorities was not in a position to contradict the facts presented by the petitioner and could not deny the allegations substantiated by the records.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B

AI-generated summary — verify with the full judgment below

OD 20 ORDER SHEET WPO 1089 of 2021 IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE MSP STEEL AND POWER LIMITED VS NATIONAL FACELESS ASSESSMENT CENTRE DELHI (EARLIER NATIONAL E-ASSESSMENT CENTRE, DELHI) AND ORS. BEFORE: The Hon’ble JUSTICE MD. NIZAMUDDIN Date : 9th November, 2021. (Via Video Conference) Mr. J.P. Khaitan, Sr. Adv. Ms. Swapna Das, Adv. Mr. Siddharth Das, Adv. … for the Petitioner Mr. S. Roy Chowdhury, Adv. Mr. Madhu Jana, Adv. …for the respondents The Court: Heard both the parties. In this matter petitioner has challenged the impugned assessment order dated 28th September, 2021 under Section 147 read with 144B of the Income Tax Act, 1961 on the ground of gross violation of principles of natural justice by not affording effective opportunity of hearing to the petitioner. In support of contention of the petitioner it has placed documents which are part of the writ petition.

2 It appears from records that show cause notice was issued to the assessee petitioner as to why the proposed variation should not be made in the draft assessment relating to assessment year 2013-14 which was received by the petitioner on 27th September, 2021. It appears from the said show cause notice that the assessee petitioner was asked to submit response to the same through registered e-filing account by 23.59 hours of 28th September, 2021. It is the case of the petitioner that though time was granted to the petitioner till 23.59 hours on 28th September, 2021 to give response to the said show cause notice but the official portal for filing such reply was closed much before the time allotted to the petitioner. That could be established from the correspondence made by the petitioner, dated 28th September, 2021 at 8.21 p.m. to the respondent Authorities about the difficulties the petitioner was facing in filing response to the show cause notice in the official IT Portal as appears from page 221 being annexure P-11 to the writ petition. It appears from the records being annexure P-12 to the writ petition that on 28th September, 2021 at 9.03 p.m. petitioner received that impugned assessment order dated 28th September, 2021. It is strange how the impugned assessment order could be passed and e- mailed to the petitioner on 28th September, 2021 at 9.03 p.m. when time to file response to the show cause notice was till 11.59 p.m. on 28th September, 2021 and in the evening itself its IT portal was closed because of which petitioner could not file its response to the said show cause notice in question.

3 Considering these facts and submission of Mr. Chowdhury, learned advocate appearing for the respondent Income Tax Authorities and that he is not in a position to contradict these facts appear from records and could not deny the allegation of the petitioner substantiated by records, the impugned order dated 28th September, 2021 is set aside with liberty to the assessing officer concerned to pass a fresh assessment order in accordance with law by giving effective opportunity of hearing to the petitioner and observing principles of natural justice. With these observations and directions, this writ petition being WPO 1089 of 2021 is disposed of. (MD. NIZAMUDDIN, J.) TR/

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →