Gujarat High Court
Hetal Tejasbhai Amin vs The National Faceless Assessment ... on 27 January, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 7619 of 2022
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR.JUSTICE D.N.RAY
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Approved for Reporting Yes No
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HETAL TEJASBHAI AMIN
Versus
THE NATIONAL FACELESS ASSESSMENT CENTRE & ANR.
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Appearance:
MS VAIBHAVI K PARIKH(3238) for the Petitioner(s) No. 1
MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 2
SERVED BY RPAD (N) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 27/01/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned Senior Advocate Mr. Tushar Hemani with learned advocate Ms. Vaibhavi Parikh for the petitioner and learned Page 1 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025 NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined Senior Standing Counsel Ms. Maithili Mehta for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Ms. Mehta waives service of notice of rule on behalf of the respondent.
3. By this petition under Article 227 of the Constitution of India, the petitioner has challenged the assessment order dated 25.03.2022 as well as demand notice of the same date for the Assessment Year 2017-18 on the ground of breach of principles of natural justice.
4. Brief facts of the case are that:
4.1 The petitioner filed return of income for the Assessment Year 2017-18 on 05.08.2017 declaring total income at Rs. 3,68,590/-.
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NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined 4.2 The case of the petitioner was reopened by the Assessing Officer by issuance of notice dated 31.03.2021 under section 148 of the Income Tax Act,1961 [for short 'the Act'].
4.3 Eventually, a notice dated 14.02.2022 under section 142(1) was issued calling upon the petitioner to furnish various information and details. 4.4 The petitioner thereafter requested for an adjournment on 26.02.2022.
4.5 On 28.02.2022, the respondent issued under section 142(1) calling upon the petitioner to furnish the details, sought for while issuing notice. Page 3 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025
NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined 4.6 In response to the same, the petitioner furnished detailed reply. 4.7 Thereafter, the respondent issued a show-cause notice dated 23.03.2022 along with draft assessment order calling upon the petitioner to show cause as to why proposed variation should not be made and assessment should not be completed. 4.8 In response to the show cause notice, the petitioner vide letter dated 24.03.2022 furnished detailed submissions and requested for personal hearing through video conference.
4.9 The respondent, without accepting the request of the petitioner and without considering the submissions, straightaway framed assessment under section 147 read with section 144B of the Act vide order Page 4 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025 NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined dated 25.03.2022 raised a demand of Rs. 1,59,49,509/- determining total income at Rs. 1,32,66,090/-.
Being aggrieved, the petitioner approached this Court by way of present petition.
5. Learned Senior Advocate Mr. Hemani submitted that the respondent-Assessing Officer, while passing impugned assessment order, has not even referred to the show cause notice dated 23.03.2022 wherein, the time was given to the petitioner to file reply by 23:59 hours of 24.03.2022. It was submitted that though one day time was granted to the petitioner, reply was uploaded on 24.03.2022. However, without considering the said reply as well as replies filed by the petitioner to the earlier notices issued under sections Page 5 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025 NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined 142(1) and 143(2) of the Act, the impugned assessment order has passed in terms of the draft assessment order without discussing the contention raised by the petitioner and without referring to the show-cause notice along with the draft assessment and reply thereto. 5.1 Learned Senior Advocate Mr. Hemani invited the attention of the Court to paras 4 and 5 of the impugned assessment order in support of his submissions. It was therefore submitted that the impugned assessment order may be quashed and set aside and the matter may be remanded back to the Assessing Officer to consider the replies filed by the petitioner and pass a de novo assessment order in accordance with law.
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NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined
6. On the other hand, learned Senior Standing Counsel Ms. Mehta could not controvert the submissions made on behalf of the petitioner to the effect that there is no reference to the show-cause notice dated 23.03.2022 in the impugned assessment order. It was also not controverted that the Assessing Officer has not referred to any of the replies filed by the petitioner but has reproduced the draft assessment order as per the show-cause notice dated 23.03.2022.
7. In view of the above undisputed facts, there is a clear breach of the principles of natural justice committed by the respondent-Assessing Officer by not referring to the show-cause notice, draft assessment order served upon the petitioner and the replies filed thereto. Page 7 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025
NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined
8. It is also apparent that the respondent-
Assessing Officer has failed to consider the other replies filed by the petitioner to the further notices issued under section 142(1) of the Act on 14.02.2022 and 28.02.2022. We are therefore of the opinion that, without entering into the merits of the case, the impugned assessment order is required to be quashed and set aside as the same is passed in breach of principles of natural justice.
9. The petition therefore, succeeds and is accordingly allowed. The impugned assessment order dated 25.03.2022 is hereby quashed and set aside and the matter is remanded back to the Assessing Officer to pass a fresh de novo order within a period of Twelve weeks from the date of receipt of copy of the order at Page 8 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025 NEUTRAL CITATION C/SCA/7619/2022 JUDGMENT DATED: 27/01/2025 undefined the draft assessment stage after taking into consideration the replies filed by the petitioner. It is made clear that we have not entered into the merits of the matter and the petition is disposed of with the aforesaid directions only on account of breach of principles of natural justice by the Assessing Officer. Rule is made absolute to the aforesaid extent. No order as to costs.
(BHARGAV D. KARIA, J) (D.N.RAY,J) JYOTI V. JANI Page 9 of 9 Uploaded by JYOTI V. JANI(HC00213) on Wed Jan 29 2025 Downloaded on : Wed Jan 29 23:01:23 IST 2025