M.G. Constructions Private Limited V. National Faceless Assessment Centre and Another

WTAX/811/2023

AI Insights

The case involves M/S M.G. Constructions Private Limited challenging a re-assessment order issued by the National Faceless Assessment Centre under Section 147 of the Income Tax Act for the Assessment Year 2015-16. The petitioner argued that the order was passed in violation of natural justice, as their detailed reply was not considered, and the mandatory notice under Section 143(2) was not issued. The court found that the order was passed without considering the petitioner's reply, thus violating the principles of natural justice.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 686577 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 05-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: GAURAV MAHAJAN
• Assessee Lawyers: SHUBHAM AGRAWAL
• Keywords: Exparte; Income tax portal; Natural Justice; Re-assessment order; Violation of Principles
• Section: 147; 143(2); 144(b)

Judgement Text

"Neutral Citation No. - 2023:AHC:133015-DB Chief Justice's Court Case :- WRIT TAX No. - 811 of 2023 Petitioner :- M/S M.G. Constructions Private Limited Respondent :- National Faceless Assessment Centre And Another Counsel for Petitioner :- Shubham Agrawal Counsel for Respondent :- Gaurav Mahajan Hon'ble Pritinker Diwaker,Chief Justice Hon'ble Ashutosh Srivastava,J. 1. Heard Shri Shubham Agarwal, learned counsel for the petitioner and learned Standing Counsel for the respondents. 2. The challenge in this writ petition is to a re-assessment order dated 2.5.2023 passed by the National Faceless Assessment Centre, Assessment Unit, Income Tax department exercising powers under Section 147 of the Income Tax Act for the Assessment Year 2015-16. 3. It is contended by learned counsel for the petitioner that the impugned order has been passed in utter violation of the principles of natural justice and without considering/acknowledging the detailed reply filed by the petitioner and recording incorrect fact that no reply had been filed by the petitioner. It is further contended that the impugned order is void ab initio inasmuch as the mandatory notice under Section 143 (2) of the Income Tax Act has not been issued or served upon the petitioner. 4. Learned counsel for the petitioner has vehemently contended that the Notice under Section 144-B of the Act was issued on 10.4.2023 fixing the date of compliance as 14.4.2023. The said notice was received by post on 25.4.2023. No orders were passed on 14.4.2023 and no date was fixed. The petitioner filed its reply to the notice dated 10.4.2023 under Section 144-B on 1.5.2023. The respondent No. 1 passed the impugned order on 2.5.2023 without informing the petitioner of the date fixed and without taking into consideration the reply of the petitioner which was duly uploaded on the Income Tax Portal. Pleadings to this effect have been taken in Para 25 of the writ petition. 5. The writ petition has been opposed by the learned Standing Counsel by submitting that since the assessment order has been passed, the petitioner has a remedy to assail the same before the Appellate Authority and the writ petition may not be entertained by this Court in the wake of the availability of alternative remedy. He, however, is unable to refute the submissions of the learned counsel for the petitioner. 6. We have heard learned counsel for the parties and have perused the record. 7. We find that 14.4.2023 had been fixed in the Notice dated 10.4.2023 under Section 144-B of the Act. No orders were passed on 14.4.2023 by the respondent No. 1. No date was fixed by the respondent No. 1. Meanwhile, the petitioner filed its reply on 1.5.2023 by uploading the same on the Income Tax Portal. The respondent No. 1 proceeded to pass the order on 2.5.2023 without considering the reply of the petitioner. The impugned order is exparte and without application of mind inasmuch as, the reply of the petitioner has not been considered at all. The impugned order is in violation of the elementary principles of natural justice and is not liable to be sustained. 8. Accordingly, the impugned re-assessment order dated 2.5.2023 is set aside. The writ petition stands allowed. The matter is remitted back to the respondent No. 1 for consideration afresh and passing fresh order after affording due opportunity of hearing to the petitioner. Order Date :- 5.7.2023 Ashish (Ashutosh Srivastava, J. ) (Pritinker Diwaker, C.J.) Digitally signed by :- ASHISH High Court of Judicature at Allahabad "