Gujarat High Court
Vijay Thakkar vs National Faceless Assessment Centre on 30 September, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 4462 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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VIJAY THAKKAR
Versus
NATIONAL FACELESS ASSESSMENT CENTRE & ANR.
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Appearance:
MR KETAN H SHAH(2705) for the Petitioner(s) No. 1
MR. AMAN K SHAH(9992) for the Petitioner(s) No. 1
MS MAITHILI D MEHTA, SR. STANDING COUNSEL 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 : 30/09/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI) 1 Heard Mr.Ketan Shah, learned counsel for the petitioner and Ms.Maithili Mehta, learned Senior Standing Counsel for the respondent. 2 Rule returnable forthwith. Ms.Maithili Mehta, learned Senior Standing Counsel, waives service of Page 1 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025 NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined notice of rule on behalf of the respondent. 3 The present petition is preferred praying for the following reliefs:
"a) quash and set aside the impugned order dated 11.03.2025 at Annexure-D to this petition and remand and direct the Respondents to pass fresh necessary order u/s 143(3) after giving opportunity of hearing to the Petitioner assessee and after considering all the replies and evidences of the assessee.
b) pending the admission, hearing and final disposal of this petition, to stay the implementation and operation of the order dated 11.03.2025 and recovery of demand u/s 156 for the amount of Rs.3,87,96,693/- as per Annexure-
D;
c) any other and further relief deemed just and proper be granted in the interest of justice;
d) to provide for the cost of this petition." 4 The brief facts leading to filing of this writ petition are as under:
4.1 The petitioner is an individual Company having income from business and profession as well as rental Page 2 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025 NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined income. For the Assessment Year 2023-24, the petitioner filed original return of income on 30.12.2023 declaring total income of Rs.18,58,300/-. 4.2 The case of the petitioner was selected for scrutiny assessment and a notice came to be issued under Sec.144B of the Income-Tax Act, 1961 (hereinafter referred to as 'the Act' for short) on 27.06.2024 for completion of assessment in faceless assessment. Notice under Sec.143(2) was also issued on the same date.
4.3 It is the case of the petitioner that on 10.07.2024, notice was issued under Sec.142(1) requesting the assessee to provide details such as nature of business, Profit & Loss Account, Balance Sheet, details of bank accounts etc., as enumerated in the notice. In response to the same, the petitioner filed his reply on 06.10.2024 along with various Page 3 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025 NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined documents. Thereafter, again a notice under Sec.142(1) was issued on 27.01.2025 calling upon the petitioner to explain the source of investment in purchase of immovable property as well as source of other investments.
4.4 Thereafter, a show-cause notice-cum-Draft Assessment Order dated 21.02.2025 was issued to the petitioner as to why the proposed variation of income should not be made and added to the income of the petitioner.
4.5 Reply to such notice was filed by the petitioner on 10.03.2025 along with ten enclosures. It is the case of the petitioner that in utter disregard of all the voluminous replies and evidences filed by the petitioner, the respondent passed the Assessment Order dated 11.03.2025 under Sec.143(3) read with Sec.144B of the Act.
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NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined 4.6 It is the case of the petitioner that the impugned order categorically observed that no reply to the show-cause notice was given which was factually incorrect since the petitioner has asked adjournment on 28.02.2025 as well as given reply on 10.03.2025 along with ten enclosures.
4.7 It is the case of the petitioner that the impugned order is passed without considering and making factual incorrect statement with regard to reply dated 10.03.2025 and 11.03.2025.
5 In view of the facts mentioned hereinabove, learned advocate Mr.Ketan Shah for the petitioner made the following submissions:
5.1 That the impugned order dated 11.03.2025 suffers from illegality as it is passed in violation of principles of natural justice, insomuch as, the material evidence regarding the proposed evidences, Page 5 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025 NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined more specifically the replies dated 10.03.2025 and 11.03.2025 were never considered by the respondent before passing the Assessment Order which caused grave prejudice to the petitioner- assessee. 5.2 That in view of the voluminous evidences filed by the assessee - petitioner with regard to each and every addition made in the order, the additions made ought to have been deleted, which is not so done by the Assessing Officer, which shows non-applicability of mind by the respondent - Assessing Officer. Thus, as the order is suffering from the vice of illegality, the same needs to be quashed.
5.3 It was further submitted that in view of settled legal proposition of law, a reasoned Assessment Order needs to be passed by the Assessing Officer only after due consideration of evidences and replies filed by the assessee and also giving the reasons for Page 6 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025 NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined non acceptance of replies by the assessee. In the present case, since the Assessing Officer has failed in passing a reasoned Assessment Order as per settled legal proposition, the same is violative of principles of natural justice and hence is required to be quashed. 6 Per Contra, Ms. Maithili Mehta learned Senior Standing Counsel, relying on the affidavit-in-reply and in particular para 11 and 15 has conceded to the fact that the Assessing Officer being aware of the facts of the reply dated 10.03.2025, the same was not considered and other statutory formality for passing the Assessment Order in the subject case had been completed. For ready reference, para 15 of the reply given by the respondent is produced herein below:
"15. I state that in view of the mentioned above despite the then Assessing Officer being aware of the facts that the assessee had submitted a reply on 10.03.2025, the same was not considered and was delayed and the other statutory formalities for passing the assessment order in the subject case had been completed."Page 7 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025
NEUTRAL CITATION C/SCA/4462/2025 JUDGMENT DATED: 30/09/2025 undefined 7 In view of the fact that the learned Senior Standing Counsel for the department could not controvert that the reply even though very much available on record was not considered by the Assessing Officer, the present petition is required to be allowed and is hereby allowed. The impugned order dated 11.03.2025 is hereby quashed and set aside and the matter is remanded to the respondent to pass a fresh order after considering the replies dated 10.03.2025 and 11.03.2025. 8.1 Such exercise shall be completed within twelve (12) weeks from the date of receipt of a copy of this order.
9 The petition is accordingly disposed of. Notice is discharged.
(BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) BIMAL Page 8 of 8 Uploaded by BIMAL B CHAKRAVARTY(HC01089) on Wed Oct 01 2025 Downloaded on : Wed Oct 01 22:26:39 IST 2025