DANISCO (INDIA) PRIVATE LIMITED vs. ASSESSMENT UNIT INCOME TAX DEPARTMENT DELHI & ANR.

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W.P.(C)/3945/2025HC DelhiDLHC01016693202528 March 2025Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Delhi held that the impugned draft assessment order dated March 1, 2025, passed under Section 144C of the Income Tax Act, 1961, was set aside. The Court reasoned that it was undisputed that the petitioner had sought an opportunity to be heard, and no such opportunity, either through video conferencing or otherwise, was afforded. This failure to provide a hearing violated the principles of natural justice. Consequently, the matter was remanded to the Assessing Officer to be considered afresh after providing the petitioner with an adequate opportunity to be heard. The pending applications were also disposed of.

What were the facts?

The petitioner, Danisco (India) Private Limited, filed a writ petition challenging a draft assessment order dated March 1, 2025, passed under Section 144C of the Income Tax Act, 1961, for Assessment Year 2022-23. The petitioner contended that it was not provided an opportunity to be heard before the draft assessment order was passed, despite having requested one. The Revenue did not dispute this fact. The High Court of Delhi was considering this petition.

What were the issues?

1. Whether the draft assessment order passed under Section 144C of the Income Tax Act, 1961, is invalid for failure to provide the assessee with an opportunity of being heard, as required by principles of natural justice and statutory provisions. Assessee's Contention: The petitioner argued that the draft assessment order was liable to be quashed because it was passed without affording the petitioner an opportunity to be heard, despite the petitioner having explicitly requested such an opportunity. The Revenue did not dispute that no hearing was provided.

Which sections of the Income-tax Act were involved?

Section 144C

AI-generated summary — verify with the full judgment below

$~37 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 3945/2025 CM APPL. 18392/2025 CM APPL. 18393/2025

DANISCO (INDIA) PRIVATE LIMITED .....Petitioner Through: Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr. Tarun Chanana & Mr. Sumit Lalchandani, Advocates.

versus

ASSESSMENT UNIT INCOME TAX DEPARTMENT, DELHI & ANR.

.....Respondents Through: Mr. Sanjay Kumar, Sr. Standing Counsel with Ms. Monica Benjami & Ms. Easha Kadian, Advocates.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

HON'BLE MR. JUSTICE TEJAS KARIA

O R D E R %

28.03.2025 1. Issue notice. The learned counsel for Revenue accepts notice. 2. The petitioner has filed the present petition, inter alia, impugning a draft assessment order dated 01.03.2025 passed under Section 144C of the Income Tax Act, 1961 [the Act] for assessment year [AY] 2022-23. 3. The petitioner challenges the impugned order, inter alia, on the ground that the petitioner was not afforded an opportunity to be heard despite seeking such opportunity. 4. Admittedly, the petitioner had sought for an opportunity of to be heard and it is not disputed that no opportunity of hearing (either through video conferencing or otherwise) was afforded to the petitioner. 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 01/07/2025 at 23:47:27

5.

In view of the above, the impugned order is set aside. The matter is remanded to the Assessing Officer to consider afresh after affording the petitioner an opportunity to be heard. 6. Pending applications are also stand disposed of.

VIBHU BAKHRU, J

TEJAS KARIA, J MARCH 28, 2025/’A’

Click here to check corrigendum, if any 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 01/07/2025 at 23:47:27

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