Buli Chemicals India Pvt. Ltd vs Assessment Unit Income Tax Dept ...
2023 Latest Caselaw 8762 Bom

    2023:BHC-AS:24836-DB
         Digitally                                                        405-aswp-10642-2023.doc
          signed by
          SHAMBHAVI
SHAMBHAVI NILESH
NILESH    SHIVGAN
SHIVGAN   Date:
          2023.08.30
          12:22:01
          +0530




                                   IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                               CIVIL APPELLATE JURISDICTION
                                            WRIT PETITION NO. 10642 OF 2023


                        Buli Chemicals India Pvt. Ltd.                             ... Petitioner
                              Versus
                        Assessment Unit Income Tax Dept. & Ors.                    ... Respondents


                        Mr. Madhur Agrawal i/by Mr. Atul K Jasani, for Petitioner.
                        Mr. Ajeet Manwani with Samiksha Kanani for Respondent-State.


                                                      CORAM            K. R. SHRIRAM &
                                                                       DR. N. K. GOKHALE, JJ.

                                                      DATED:           28th August 2023
                        P.C. :

1. Petitioner is impugning the assessment order dated 27 th May

2023 passed under Section 143(3) read with Section 144B of the

Income-tax Act, 1961 ("Act") for the Assessment Year 2020-21

along with consequential demand notice and penalty notice, both

dated 27th May 2023.

2. Mr. Agrawal states that Petition was served on 26 th June

2023. No reply has been filed till date.

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3. In view of the facts and circumstances of the case, we do not

feel it necessary to go into the details and the Petition is being

disposed at the stage of admission itself.

4. Petitioner received a notice dated 12th May 2023 calling

upon Petitioner to show cause as to why variation mentioned

therein should not be made to the returns filed by Petitioner. The

notice has been digitally signed on 22nd May 2023 at 13:21:58

IST. Petitioner has been given time to respond by 12:41 hour on

23rd May 2023, i.e., less than 24 hours.

5. On 24th March 2023, Petitioner addressed communication

to Faceless Assessment Unit requesting for time to prepare details

and documents and submit it by 10th June 2023 since Petitioner

has been taken over by new management and consequently there

was change in Board of Directors also. Despite that assessment

order came to be passed on 27th May 2023 making variations

mentioned therein. It is also recorded in the impugned assessment

order that Petitioner was given time to give final reply to the show-

cause notice but Petitioner sought adjournment on 20th June 2023

and adjournment cannot be granted due to paucity of time. There

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is no explanation as to what was the urgency or why there was

paucity of time because time for completing assessment was

expiring on 30th September 2023.

6. Mr. Manwani submitted that Petitioner had been given

opportunity earlier as recorded in paragraph 2 of the impugned

order but Petitioner did not respond. Mr. Agrawal in response

stated that Petitioner was undergoing transition as mentioned in

the adjournment request noted earlier. Mr. Agrawal states that

Petitioner was always and is ready and willing to give within two

weeks from today explanation to show-cause as to why variation

should not be made.

7. In our view, as the time limit was expiring only on 30th

September 2023, the Assessing Officer could have been considerate

and granted time up to 10th June 2023. In any case, by giving less

than 24 hours notice to respond to an Assessee, in our view, would

violate the principles of natural justice. There are various circulars

issued and in other provisions that provide at least 7 days and up

to 30 days notice has to be given. We feel the Assessing Officer,

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since there was no urgency, should have given minimum seven

days time to respond.

8. Therefore, we hereby quash and set aside the impugned

order dated 27th May 2023 and consequential demand notice and

penalty notice also dated 27th May 2023 and remand the matter to

Faceless Assessment Officer.

Respondents are directed to open the portal to enable

Petitioner to respond/file reply to the show-cause notice dated

22nd May 2023 within two weeks of the portal being opened.

Thereafter Assessing Officer may pass such order as he

deems fit in accordance with law within eight weeks.

Before passing any order, personal hearing shall be given to

Petitioner, notice whereof shall be communicated to Petitioner at

least five days in advance.

If Assessing Officer is going to rely on any judgment or order

of the Tribunal or a Court, list thereof shall be made available to

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Petitioner along with the notice of personal hearing, so that

Petitioner may deal with or distinguish the same.

9. We further make it clear that Assessing Officer shall not rely

on any material or intimation or document, copy whereof is not

made available to Petitioner at least seven working days before the

personal hearing.

10. The Petition disposed.

11. We clarify that we have not made any observations on the

merits of the matter.

(DR. N. K. GOKHALE, J.) (K. R. SHRIRAM, J.)

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