Ally Biju Net X Technologies V. Assessment Unit Income Tax Department, National Faceless Assessment Centre (NFAC), New Delhi

WP(C)/11140/2023

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The case involves Ally Biju Net X Technologies, the petitioner, who contested an income tax assessment order (Ext. P3) issued by the National Faceless Assessment Centre (NFAC). The petitioner argued that their objection (Ext. P2) to a show cause notice (Ext. P1) was not considered because it was submitted one day late, mistakenly believing the deadline could extend to the next working day after a Saturday. The respondent countered that the online submission facility allowed for objections to be submitted on any day, including holidays. The court found no violation of natural justice in the non-consideration of the late objection and suggested the petitioner pursue the matter through the statutory appeal process.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798371 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 29-03-2023
• Assessment Year: misc
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: ANIL NAIR; TELMA RAJU; P K BIJU; ANJANA; AADITYA NAIR
• Keywords: Income Tax; Natural Justice; Online submission; Stay of recovery; Writ of Certiorari

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A. WEDNESDAY, THE 29TH DAY OF MARCH 2023 / 8TH CHAITHRA, 1945 WP(C) NO. 11140 OF 2023 PETITIONER/S: ALLY BIJU NET X TECHNOLOGIES, 33/953E2, KADUPATH ROAD, VENNALA P.O, ERNAKULAM, KERALA, PIN – 682028 BY ADVS. ANIL D. NAIR TELMA RAJU P.K.BIJU ANJANA A. AADITYA NAIR RESPONDENT/S: ASSESSMENT UNIT INCOME TAX DEPARTMENT, NATIONAL FACELESS ASSESSMENT CENTRE (NFAC), NEW DELHI, PIN - 110001 ADV JOSE JOSEPH -SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 11140 OF 2023 2 JUDGMENT The petitioner, an assessee of Income Tax, has approached this Court seeking the following reliefs: “a. Call for the records leading to issuance of Exhibit P3 and quash the same by issuing a writ of certiorari. b. pending hearing and final disposal of the writ petition, this Hon’ble Court be pleased to grant stay of recovery of tax due under Exhibit P3 and all further proceedings pursuant to Exhibit P4 and P5.” 2. The grievance of the petitioner is that in response to Ext. P1 show cause notice, the petitioner was supposed to submit a reply on or before 11.03.2023. However, as 11.03.2023 happened to be a Saturday, the petitioner was under the impression that the same could be submitted on the next working day. Accordingly, he submitted the Ext. P2 reply 13.03.2023. However, as per Ext. P3 order dated 21.03.2023, the assessment has been finalized without taking into account Ext. P2 objection submitted by the petitioner, presuming that the same was not submitted within the stipulated time. In the said circumstances, WP(C) NO. 11140 OF 2023 3 the petitioner challenges Ext. P3 by highlighting the contention that he was denied the opportunity to raise objections. 3. On the other hand, learned Standing Counsel appearing for the respondent would submit that, since the facility of submission of objection was being done through online mode, the fact that the last day falls on a holiday is not significant. It was pointed out that it was open for the petitioner to submit the objections even on a holiday, and therefore the contentions raised by the petitioner cannot be accepted. 4. After considering all the relevant aspects, I am of the view that there is some force in the contentions of the learned Standing Counsel appearing for the respondent. Since it is an online facility, nothing prevented the petitioner from submitting the objections within the time stipulated as per Ext. P1. Therefore, as such, it cannot be concluded that there was any violation of principles of natural justice on the part of the respondent in not considering the objection submitted by the petitioner. However, the fact remains that the assessment was finalised without taking note of Ext. P2 objections, and therefore WP(C) NO. 11140 OF 2023 4 it is only proper that the petitioner raises all these contentions before the Appellate Authority by filing a statutory appeal in this regard. 5. In such circumstances, even though I am not inclined to interfere with Ext. P3 order passed, this writ petition is disposed of relegating the petitioner to approach the Appellate Authority by submitting a statutory appeal. The stay of recovery proceedings pursuant to Ext. P3 can also be sought by the petitioner along with the appeal to be filed by filing appropriate application. To enable the petitioner to avail the said remedy, the recovery proceedings against the petitioner for realising amount demanded in Ext. P3 shall be kept in abeyance until 21.04.2023. In case, the appeal and the stay petition are filed within the said period, the stay of recovery proceedings shall continue in force until a decision is taken on the stay petition. This writ petition is disposed of. Sd/- ZIYAD RAHMAN A.A. JUDGE avs WP(C) NO. 11140 OF 2023 5 APPENDIX OF WP(C) 11140/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE SHOW CAUSE NOTICE DATED 7.3.2023 ISSUED BY THE RESPONDENT. Exhibit P2 TRUE COPY OF REPLY DATED 13/03/2023 ALONG WITH ACKNOWLEDGMENT EVIDENCING THE DOCUMENTS BEING UPLOADED Exhibit P3 TRUE COPY OF THE ASSESSMENT ORDER DATED 21.3.2023 ALONG WITH COMPUTATION ISSUED BY THE RESPONDENT Exhibit P4 TRUE COPY OF NOTICE DATED 21.3.2023 BEARING DINNO.ITBA/PNL/S/270A/2022- 23/1051085785(1) ISSUED BY THE RESPONDENT. Exhibit P5 TRUE COPY OF THE NOTICE DATED 21.3.2023 BEARING DINNO.ITBA/PNL/S/271AAC(1)/2022- 23/1051085889(1) ISSUED BY THE RESPONDENT. "