E.CONSTRUCT FZ LLC V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE INT. TAX. 1(2)(2) & ANR.

W.P.(C)/10672/2023

AI Insights

In the case of E.CONSTRUCT FZ LLC versus ASSISTANT COMMISSIONER OF INCOME TAX, the petitioner challenged notices and an order related to the assessment year 2019-20 under various sections of the Income Tax Act, 1961. The primary contention was the procedural inadequacy in the issuance of a notice dated 30.03.2023, which the petitioner received only on 14.04.2023, post the deadline for response. The court found that the Assessing Officer did not consider the petitioner's communicated difficulties in responding to the notice within the stipulated time, leading to the setting aside of the order and directions for a fresh assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 748981 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 11-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PUNEET RAI; ASHVINI KUMAR; MADHAVI SHUKLA
• Assessee Lawyers: RUCHESH SINHA
• Keywords: Assessment Order; Final Hearing; Income Tax; Interim relief; Notice
• Section: 148; 148A(b); 148A(d)

Judgement Text

" W.P.(C)No.10672/2023 Page 1 of 3 $~ 65 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 11.08.2023 + W.P.(C) 10672/2023 E.CONSTRUCT FZ LLC ..... Petitioner Through: Mr Ruchesh Sinha, Adv. versus ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE INT. TAX. 1(2)(2) & ANR. ..... Respondents Through: Mr Puneet Rai, Sr Standing Counsel with Mr Ashvini Kumar and Ms Madhavi Shukla, Advs. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MS. JUSTICE TARA VITASTA GANJU [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J.: (Oral) CM Appl.41389/2023 1. Allowed, subject to just exceptions. W.P.(C) 10672/2023 & CM Appl.41388/2023 [Application filed on behalf of the petitioner seeking interim relief] 2. Issue notice. 2.1 Mr Puneet Rai, learned senior standing counsel, accepts notice on behalf of the respondents/revenue. 3. In view of the directions that we intend to pass, Mr Rai says that no counter-affidavit is required to be filed and he will rely on the record presently available with the court. 3.1 Therefore, with the consent of the counsels for the parties, the writ Digitally Signed By:ATUL JAIN Signing Date:29.08.2023 17:28:18 Signature Not Verified W.P.(C)No.10672/2023 Page 2 of 3 petition is taken up for final hearing and disposal at this stage itself. 4. Via this writ petition, the petitioner/assessee seeks to assail the following notices and order: (i) Notice dated 30.03.2023, issued under Section 148A(b) of the Income Tax Act, 1961 [in short, “Act”]. (ii) Order dated 17.04.2023, passed under Section 148A(d) of the Act. (iii) Consequential notice dated 17.04.2023, issued under Section 148 of the Act. 4.1. The abovementioned notices and orders concern AY 2019-20. 5. The principal grievance of the petitioner is that after it was served with the notice dated 30.03.2023 under Section 148A(b) of the Act according time to file a response by 10.04.2023, a communication dated 14.04.2023 was sent to the respondents/revenue, explaining the difficulty in filing the response. 5.1 It is stated that the said difficulty was not taken into account before passing the assessment order dated 17.04.2023 under Section 148A(d) of the Act. 5.2 The difficulty that the petitioner expressed in its communication dated 14.04.2023, was simply this i.e., it had been served with the notice dated 30.03.2023 only on 14.04.2023, and therefore there was no way that the petitioner could file response by 10.04.2023. 6. This aspect of the matter was not taken into account by the Assessing Officer (AO) while passing the order under Section 148A(d) of the Act. 7. According to us, the best way forward would be to set aside the impugned order dated 17.04.2023 passed under Section 148A(d) of the Act, Digitally Signed By:ATUL JAIN Signing Date:29.08.2023 17:28:18 Signature Not Verified W.P.(C)No.10672/2023 Page 3 of 3 with liberty to the AO to pass a fresh order. 7.1 It is ordered accordingly. 8. The AO will pass a fresh order after considering the reply which the petitioner has furnished on merits, via communication dated 18.04.2023. 8.1 The AO will also accord personal hearing to the authorized representative of the petitioner. 8.2 For this purpose, a notice will be issued to the petitioner, setting out the date and time of hearing. 8.3 Needless to add, the AO will pass a speaking order, a copy of which will be furnished to the petitioner. 9. The writ petition is disposed of in the aforesaid terms. Accordingly, pending interlocutory application shall also stand closed. 10. Parties will act based on the digitally signed copy of the order. RAJIV SHAKDHER, J TARA VITASTA GANJU, J AUGUST 11, 2023/pmc Digitally Signed By:ATUL JAIN Signing Date:29.08.2023 17:28:18 Signature Not Verified "