Gyan Chand Gupta V. National Faceless Assessment Centre Delhi & Ors.

W.P.(C)/12328/2023

AI Insights

The case involves Gyan Chand Gupta, the petitioner, who challenged an assessment order for the Assessment Year 2017-18, issued under sections 147, 144, and 144B of the Income Tax Act, 1961. The petitioner contested the order on grounds that the responses to the show-cause notices were not adequately considered by the Assessing Officer (AO). The court noted that the principles of natural justice were followed, as the petitioner was given opportunities to respond to the notices. However, the court also observed that the petitioner delayed in approaching the court, and the issues raised were factual and required detailed examination, making them unsuitable for resolution through a writ petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 819445 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 19-09-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: PRASHANT MEHARCHANDANI; AKSHAT SINGH; RITIKA VOHRA
• Assessee Lawyers: NITIN GULATI
• Keywords: Accommodation entries; Assessment Order; Bogus long term capital gain/loss; Natural Justice; Show cause notice
• Section: 147; 144; 144B; 148A(b); 148A(d)

Judgement Text

" W.P.(C) 12328/2023 Page 1 of 3 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 19.09.2023 + W.P.(C) 12328/2023 GYAN CHAND GUPTA ..... Petitioner Through: Mr Nitin Gulati, Advocate. versus NATIONAL FACELESS ASSESSMENT CENTRE DELHI & ORS. ..... Respondents Through: Mr Prashant Meharchandani, Sr. Standing Counsel with Mr Akshat Singh and Ms Ritika Vohra, Standing Counsels. CORAM: HON'BLE MR JUSTICE RAJIV SHAKDHER HON'BLE MR JUSTICE GIRISH KATHPALIA [Physical Hearing/Hybrid Hearing (as per request)] RAJIV SHAKDHER, J.: (ORAL) CM APPL. 48538/2023 1. Allowed, subject to just exceptions. W.P.(C) 12328/2023 and CM APPL. 48539/2023 [Application filed on behalf of the petitioner seeking interim relief] 2. This writ petition concerns Assessment Year (AY) 2017-18. 3. The petitioner seeks to challenge the assessment order dated 28.05.2023, passed under section 147 r/w Section 144 and Section 144B of the Income Tax Act,1961 [in short, “the Act”]. 4. It is not in dispute that before passing the aforementioned assessment order, a show-cause notice (SCN), dated 28.05.2022, was issued to the Digitally Signed By:TARUN RANA Signing Date:25.09.2023 11:41:13 Signature Not Verified W.P.(C) 12328/2023 Page 2 of 3 petitioner under Section 148A(b) of the Income Tax Act, 1961 [in short, “the Act”]. 5. The record also shows that a SCN dated 15.05.2023 was also served on the petitioner/assessee. 6. Mr Nitin Gulati, who appears on behalf of the petitioner/assessee, points out that a reply dated 10.06.2022 was tendered vis-à-vis the first SCN dated 28.05.2022. 6.1 Likewise, we are told by Mr Gulati that replies were filed on 25.05.2023 and 26.05.2023 to the SCN dated 15.05.2023 albeit, after the date for filing the response provided in the said notice. 7. The record shows that, in the interregnum, the Assessing Officer (AO) had passed an order dated 29.07.2022 under Section 148A(d) of the Act. 8. In sum, the principles of natural justice appear to have been fulfilled at each stage and only thereafter, the impugned assessment order appears to have been passed. 9. The allegation against the petitioner, broadly, is that he is a beneficiary of accommodation entries which enabled him to register bogus long-term capital gain/loss. 10. Mr Gulati says that AO has not taken into account the responses filed by the petitioner/assessee. 11. Apart from anything else, we notice that the petitioner/assessee has taken his own sweet time in approaching the court for assailing the assessment order dated 28.05.2023. 12. In our view, the matter involves contentious facts which would require thorough enquiry, and therefore, a writ action may not be a suitable remedy. 13. Accordingly, the writ petition is dismissed, with liberty to the Digitally Signed By:TARUN RANA Signing Date:25.09.2023 11:41:13 Signature Not Verified W.P.(C) 12328/2023 Page 3 of 3 petitioner to take recourse to an appropriate remedy as provided in law. 13.1 In case the petitioner files a statutory appeal with the Commissioner of Income Tax (Appeals) within the next three (3) weeks, the same will be dealt with on merits. 14. Pending application shall also stand closed. 15. Parties will act based on the digitally signed copies of the order. (RAJIV SHAKDHER) JUDGE (GIRISH KATHPALIA) JUDGE SEPTEMBER 19, 2023 / tr Digitally Signed By:TARUN RANA Signing Date:25.09.2023 11:41:13 Signature Not Verified "