Gujarat High Court
Siddharth Maneklal Patel vs National E-Assessment Centre on 7 October, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 3894 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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Approved for Reporting Yes No
✔
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SIDDHARTH MANEKLAL PATEL
Versus
NATIONAL E-ASSESSMENT CENTRE & ANR.
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Appearance:
MR DHINAL A SHAH(12077) for the Petitioner(s) No. 1
MR.VARUN K.PATEL(3802) for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 07/10/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI)
1. Heard learned advocate Mr. Dhinal Shah for the petitioner and learned Senior Standing Counsel Mr. Varun Patel for the respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun Patel waives service of notice of rule for and on behalf of the Page 1 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025 NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined respondent.
3. Having regard to the controversy arising in this petition which is in a narrow compass, with the consent of the learned advocates for the parties, the same is taken up for hearing.
4. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of Assessment Order passed by the respondent under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (for short 'the Act') on 6.3.2025 for the A.Y. 2023-24 whereby the respondent has assessed the total income of the petitioner at Rs.2,13,37,575/- and has raised a demand of Rs.64,72,319/-.
5. The brief facts giving rise to the present petition are as under:
5.1 The petitioner is an individual and had filed Page 2 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025 NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined his return of income under Section 139(1) of the Act for A.Y. 2023-24 on 16.10.2023 declaring the total income of Rs.33,92,280/- which included business income from Shares and Securities and Virtual Digital Assets (VDA). The case of the petitioner was chosen for scrutiny assessment under Section 143(2) of the Act and consequently the petitioner received a notice on 19.6.2024. 5.2 It is the case of the petitioner that he received a subsequent notice on 7.12.2024 under Section 142(1) of the Act, requesting the submissions of documents for verification regarding ongoing scrutiny proceedings under Section 143(3) of the Act. Complying the request made by the respondent, the petitioner duly furnished the requisite documents on 1.7.2024 and 31.1.2025.
5.3 It is the case of the petitioner that he received another show-cause notice on 5.1.2025 inquiring as to why proposed variations amounting Page 3 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025 NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined to Rs.54,85,700/- being expenses/ loss from sale of VDA assets should not be disallowed. It is the case of the petitioner that he gave a detailed explanation in response to the said notice and also requested for hearing through Video Conferencing, as per provisions of Section 144B of the Act.
5.4 It is the case of the petitioner that on 13.1.2025, the petitioner received another notice under Section 142(1) of the Act requesting the submission of certain particulars. Subsequently, on 31.1.2025, the petitioner complied and furnished the requested details, however, again on 25.2.2025, another notice was received under Section 142(1) of the Act requesting certain additional information in relation to purchase and sale of VDA.
5.5 It is the case of the petitioner that notice dated 25.2.2025 was received without any due date to furnish the information as sought for. It is Page 4 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025 NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined the case of the petitioner that before he could respond to the notice of 25.2.2025, an Assessment Order under Section 143(3) read with Section 144B of the Act was passed on 6.3.2025, after making an addition of Rs. 1,80,21,957/- and raising the demand of Rs.64,72,319/- towards the petitioner.
Thus, being aggrieved by the action of the respondent in passing the impugned Assessment Order dated 6.3.2025, without affording an opportunity to present the case through Video Conferencing, the present writ petition is preferred.
6. Learned advocate Mr. Dhinal Shah submitted that the impugned order and consequently, the incidental proceedings are perverse and are required to be quashed and set-aside. No opportunity was granted to present argument or provide hearing through Video Conferencing prior to issuance of Assessment Order though specific request was made by the petitioner. Page 5 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025
NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined
7. Per contra, learned Senior Standing Counsel conceded to the fact that opportunity of hearing through Video Conferencing was not made to the petitioner and the respondent has passed the Assessment order dated 6.3.2025 without granting opportunity of hearing through Video Conferencing.
8. In view of the same, it cannot be disputed that the impugned order is passed in clear breach and violation of principles of natural justice and, therefore, is dehors settled principles of law. Therefore, without entering into merits, only on this ground, the impugned Assessment Order dated 6.3.2025 for the A.Y. 2023-24 passed under Section 143(3) read with Section 144B of the Act is hereby quashed and set-aside and the matter is remanded to the respondent Assessing Officer to pass a fresh denovo order in accordance with law, after considering the reply of the petitioner as well as providing Page 6 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025 NEUTRAL CITATION C/SCA/3894/2025 JUDGMENT DATED: 07/10/2025 undefined opportunity of hearing if desired by the petitioner. Such exercise shall be completed within 12 weeks from the date of receipt of copy of this order.
The petition is disposed of accordingly. Rule is made absolute to the aforesaid extent. No order as to costs.
(BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) SAJ GEORGE Page 7 of 7 Uploaded by SAJ GEORGE(HC01069) on Wed Oct 08 2025 Downloaded on : Thu Oct 09 00:30:28 IST 2025