Maruti Clean Coal And Power Ltd. V. National Faceless Assessment Centre Delhi

WPT/136/2022

AI Insights

In this case, Maruti Clean Coal and Power Ltd. challenged the legality of an Assessment Order issued by the National Faceless Assessment Centre, Delhi. The petitioner argued that the order was passed in violation of natural justice as the show cause notice was served on them with an unrealistic deadline, leading to an inability to respond appropriately. The respondent defended the validity of the order, citing previous notices that allegedly provided sufficient opportunity for hearing. The court, after reviewing the timeline and circumstances of the notice's service, found in favor of the petitioner, leading to the quashing of the assessment order.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 691494 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 28-04-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMIT CHAUDHARY; AJAY KUMRANI
• Assessee Lawyers: SALIL KAPOOR; SOUMYA SINGH
• Keywords: Assessment Order; Natural Justice; Penalty notice; Show cause notice
• Section: 147; 263; 271(1)(c); 274; 144B; 156

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR W.P.(T) No. 136 of 2022 Maruti Clean Coal And Power Ltd. A Company Duly Registered Under The Provisions Of The Companies Act, 1956, Having Its Registered Office At Ward No. 42, Building No. 14, Civil Lines, Near Income Tax Colony, Raipur - 492001. ---- Petitioner Versus National Faceless Assessment Centre Delhi Room No. 401, 2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, Delhi -110003 ---- Respondent For Petitioner: Shri Salil Kapoor, Advocate appears along with Ms. Soumya Singh, Advocate. For Respondent: Shri Amit Chaudhary, Advocate appears along with Shri Ajay Kumrani, Advocate. Single Bench:Hon'ble Shri Sanjay S. Agrawal, J Order On Board 28.04.2022 1. By way of this petition, the Petitioner is questioning the legality and propriety of the impugned Assessment Order dated 31.03.2022 (Annexure P- 10) passed by Additional/ Joint/ Deputy/ Assistant Commissioner of Income Tax/ Income-tax Officer, National Faceless Assessment Centre, Delhi (Assessing Officer) in exercise of the powers enumerated under Section 147 read with Section 263 read with Section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act, 1961') along with demand notice dated 31.03.2022 issued under Section 156 of the Act, 1961 and also the consequential notice for penalty, which was issued in exercise of power under Section 274 read with Section 271(1)(c) of the Act, 1961 for the assessment year of 2011-12. 2 2. Learned counsel appearing for the Petitioner, while inviting attention to the provision prescribed under Section 144B of the Act, 1961, submits that since the order impugned has been passed in gross violation of the principles of natural justice, therefore, it is liable to be quashed. According to him, the show cause notice was issued on 30.03.2022 (Annexure P-8), but it was signed by the concerned Officer on the same day at 23:06:39 IST, however, it was served upon the Petitioner only on 31.03.2022 at 11:52:45 IST, while directing to file its response by 30.03.2022. It is, therefore, submitted that the order impugned as passed by the Assessing Officer under the above mentioned provision is apparently in violation of the principles of natural justice and, thus, deserves to be set aside. 3. On the other hand, learned counsel appearing for the Respondent, while referring to the earlier notices dated 11.03.2022 and 28.03.2022, submits that only after providing sufficient and reasonable opportunity of hearing, the order impugned has been passed, and therefore, the same does not require to be interfered, particularly, when alternative and efficacious remedies are available to the Petitioner. 4. I have heard learned counsel for the parties and perused the entire papers annexed with this petition carefully. 5. From perusal of the record, it appears that the alleged show cause notice dated 30.03.2022 (Annexure P-8) was signed on 30.03.2022 at 23:06:39 IST and it was admittedly served upon the Petitioner on 31.03.2022 at 11:52:45 IST, while directing the Petitioner to file its response by 30.03.2022. Under such circumstances, it is difficult to understand that how Petitioner could submit its response/reply by 30.03.2022 when the alleged show cause notice was served upon it on 31.03.2022. In such circumstances, 3 it is apparent that the order impugned dated 31.03.2022 (Annexure P-10) has been passed by the Assessing Officer in gross violation of the principles of natural justice and, thus, liable to be and is hereby quashed. 6. The concerned Respondent Authority may, however, be at liberty, if so desires, to issue a fresh show cause notice in this regard and may pass the order in accordance with the law. 7. The petition is accordingly disposed of with the aforesaid observation. Sd/- (Sanjay S. Agrawal) JUDGE Nikita "