Gujarat High Court
Arris Estates Private Limited vs Assessment Unit on 7 October, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 6159 of 2024
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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ARRIS ESTATES PRIVATE LIMITED
Versus
ASSESSMENT UNIT & ANR.
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Appearance:
MR. TUSHAR HEMANI, SENIOR COUNSEL WITH MS VAIBHAVI K
PARIKH(3238) for the Petitioner(s) No. 1
MR.VARUN K.PATEL, SENIOR STANDING COUNSEL for the
Respondent(s) No. 1
NOTICE SERVED 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 Senior Advocate Mr.Tushar
Hemani with learned advocate Ms.Vaibhavi K.Parikh,
for the petitioner and Mr.Varun Patel learned Senior
Standing Counsel for the respondent.
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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2 Rule returnable forthwith. Learned Senior
Standing Counsel Mr.Varun Patel, waives service of
notice of rule for and on behalf of the respondent.
3 Having regard to the controversy involved in this
petition, with the consent of the learned advocates for
the respective parties, the matter is taken up for final
hearing.
4 By way of present petition under Article 226 of
the Constitution of India, the petitioner challenges
the validity of the Assessment Order dated
15.03.2024 passed under Sec.143(3) r/w. Sec.144B of
the Income Tax Act, 1961 (for short 'the Act') for the
Assessment Year 2022-23 and also the Demand
Notice dated 15.03.2024 under Sec.156 of the Act
raising a total demand of Rs.15,92,65,390/-.
5 Brief facts giving rise to filing of the present are
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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as under:
5.1 The petitioner is a Company incorporated under
the provisions of the Companies Act, 1956, inter alia
engaged in the business of renting immovable
properties. The petitioner filed its Return of Income
for the Assessment Year 2022-23. The Return of
Income was selected for scrutiny assessment and
statutory notice under Sec.143(3) of the Act was
issued on 02.06.2023.
5.2 It is the case of the petitioner that various details
were called for by the respondent vide notices dated
07.08.2023, 18.12.2023 and 15.01.2024. All the
details and information were duly furnished by the
petitioner from time to time vide communication
dated 25.09.2023, 25.12.2023 and 22.01.2024.
5.3 Thereafter, the respondent issued a show-cause
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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notice on 10.02.2024 whereby, two additions were
proposed viz one addition of Rs.16,46,55,112/- under
Sec.68 of the Act in respect of long term borrowings
and two addition of Rs.15,87,46,545/- in respect of
fresh loans and advances to others.
5.4 Subsequent to the notice dated 10.02.2024, a
request for adjournment was made by the petitioner.
Thereafter, another show-cause notice was issued by
the respondent on 22.02.2024 and the petitioner was
granted time till 27.02.2024 to furnish its reply.
5.5 The petitioner again requested for short
adjournment. Therefore, another notice was issued on
29.02.2024, wherein, time was extended till
04.03.2024 for the petitioner to furnish the details as
envisaged.
5.6 The petitioner communicated its reply vide
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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communication dated 04.03.2024 raising various legal
contentions and also requested to provide an
opportunity of being heard vide video conferencing.
5.7 It is the case of the petitioner that despite the
request being made for hearing through vide
conference, the respondent straightaway framed the
assessment under Sec.143(3) r/w. Sec.144B of the Act
on 15.03.2024 determining the total income at
Rs.16,78,26,682/- and consequently raising the
demand of Rs.15,92,65,390/-. It is being aggrieved by
this impugned order dated 15.03.2024 passed without
giving the opportunity of hearing through video
conferencing that the present writ petition is
preferred.
6 It was submitted by learned Senior Advocate
Mr.Tushar Hemani appearing with learned advocate
Ms.Vaibhavi Parikh for the petitioner that the
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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impugned order is passed in gross violation of the
principles of natural justice since the request for
opportunity of being heard through video
conferencing has not been acceded to.
6.1 It was submitted by learned Senior Advocate
Mr.Tushar Hemani that the very idea behind
conducting video conference is to ensure that an
assessee gets an opportunity to explain the case to
the authority concerned in an effective manner. In the
present case, the petitioner was not at all afforded an
opportunity to represent its case through video
conference. It was further submitted that the
limitation of framing assessment was getting expired
on 31.03.2024. Therefore, the respondent had
sufficient time for framing the assessment and
granting an opportunity of hearing through video
conference. Therefore, there was gross violation of
principles of natural justice.
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C/SCA/6159/2024 JUDGMENT DATED: 07/10/2025
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7 Per Contra, learned Senior Standing Counsel
Mr.Varun Patel for the respondent, conceded to the
fact that the opportunity of hearing through video
conferencing to the petitioner has not been granted.
However, it was submitted that the assessee had
sought adjournments time and again. First notice was
issued on 02.06.2023, and thereafter the petitioner
has requested for regular adjournments. Therefore,
this being a time barring matter, the department was
left with no option but to pass the Assessment Order.
8 In view of such factual aspect, it was submitted
by learned Senior Standing Counsel Mr.Varun Patel
that the impugned order does not suffer from
procedural infirmities since all procedure as specified
in the Income Tax Act, and Standard Operating
Procedure issued by the National E-Assessment
Centre have been followed in its true spirit.
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8.1 In wake of such submissions, learned Senior
Standing Counsel Mr.Varun Patel has requested to
dismiss the present writ petition.
9 Having heard the learned advocates appearing
for the respective parties and having perused the
material on record, it cannot be disputed that the
impugned order is passed in clear violation and
breach of principles of natural justice and the fact
that the petitioner was not granted an opportunity of
hearing through video conferencing is undisputed.
10 Therefore, without entering into merits of the
matter, the impugned order dated 15.03.2024 for the
Assessment Year 2022-23 passed under Sec.143(3)
r/w. Sec.144B of the Act is hereby quashed and set
aside and the matter is remanded to the respondent -
Assessing Officer to pass a fresh de novo order, in
accordance with law after considering the reply of the
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petitioner as well as after providing an opportunity of
hearing to 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)
BIMAL
