Ramprastha Buildwell Private Limited and Ramprastha Sare Landholding Company One Private Limited V. National E-Assessment Centre, Delhi

W.P.(C)/8282/2021

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The case involves Ramprastha Buildwell Private Limited and Ramprastha Sare Landholding Company One Private Limited as petitioners, challenging the assessment orders issued by the National E-Assessment Centre, Delhi. The petitions were filed due to the assessment orders being passed without allowing the petitioners to file objections, as the notices were issued during a lockdown period caused by the COVID-19 pandemic. The petitioners argued that the lockdown prevented them from accessing their offices and responding to the notices, thus violating the principles of natural justice. The court, acknowledging the procedural lapse and the impact of the lockdown, set aside the assessment orders and remanded the cases for fresh assessment.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 687864 (HC-DELHI)
• Appeal Type: Others
• Pronouncement Date: 12-08-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SUNIL AGARWAL; TUSHAR GUPTA; RUCHIR BHATIA
• Assessee Lawyers: AMOL SINHA; ASHVINI KUMAR; NITIN GULATI
• Keywords: Assessment orders; COVID-19 lockdown; Faceless assessment; Natural Justice
• Section: 143(3); 144B

Judgement Text

" W.P.(C) 8280/2021 & W.P.(C) 8282/2021 Page 1 of 4 $~25&27 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 12.08.2021 + W.P.(C) 8280/2021 & CM APPL. 25689-90/2021 RAMPRASTHA BUILDWELL PRIVATE LIMITED ..... Petitioner Through: Mr.Amol Sinha, Mr.Ashvini Kumar & Mr.Nitin Gulati, Advs. versus NATIONAL E-ASSESSMENT CENTRE, DELHI & ANR. ..... Respondents Through: Mr.Sunil Agarwal, Sr. Standing Counsel with Mr.Tushar Gupta, Jr. Standing Counsel. + W.P.(C) 8282/2021 & CM APPL. 25693-94/2021 RAMPRASTHA SARE LANDHOLDING COMPANY ONE PRIVATE LIMITED ..... Petitioner Through: Mr.Amol Sinha, Mr.Ashvini Kumar & Mr.Nitin Gulati, Advs. versus NATIONAL E-ASSESSMENT CENTRE, DELHI & ANR. ..... Respondents Through: Mr.Ruchir Bhatia, Sr. Standing Counsel. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:15.08.2021 10:48:50 Signature Not Verified W.P.(C) 8280/2021 & W.P.(C) 8282/2021 Page 2 of 4 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE NAVIN CHAWLA MANMOHAN, J. (Oral) 1. The petitions have been heard by way of video conferencing. 2. Present writ petitions have been filed challenging the Assessment Orders dated 26th April 2021 and 27th April 2021 in W.P. (C) 8282/2021 and W.P. (C) 8280/2021 respectively, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for AY 2018-19. Petitioners also seek direction to Respondent No. 1 to grant an opportunity to the petitioners for filing objections against the show cause notices dated 21st April, 2021 and 22nd April, 2021 in W.P. (C) 8282/2021 and W.P.(C) 8280/2021 respectively. 3. Learned counsel for the Petitioners contends that the impugned Assessment orders have been passed without granting an opportunity of filing objections against the notices cum draft assessment orders as the state of Delhi was under lockdown due to the second wave of Covid-19 Pandemic between date of notices and the date by which replies had to be filed i.e. 23rd April, 2021 and 26th 4. He emphasises that the office premises of the Petitioners were closed between the date of issuance of notices and passing of the impugned orders due to curfew imposed between 19 April, 2021 in WP(C) 8282/2021 and WP(C) 8280/2021 respectively. th April, 2021 and 3rd May, 2021 in pursuance to the Delhi Disaster Management Authorities orders and the Petitioners were unable to access their official emails and communicate the notices to their authorised Digitally Signed By:JASWANT SINGH RAWAT Signing Date:15.08.2021 10:48:50 Signature Not Verified W.P.(C) 8280/2021 & W.P.(C) 8282/2021 Page 3 of 4 representatives for filing objections/replies against the show cause notices-cum-draft assessment orders. Hence, according to him, there has been a gross violation of the principles of natural justice enshrined in Section 144B of the Act. 5. Issue Notice. 6. Mr.Sunil Agarwal, Advocate and Mr.Ruchir Bhatia Advocate accept notice on behalf of the respondents in WP(C) 8280/2021 and WP(C) 8282/2021 respectively. They state that it has been the consistent stand of NaFAC that in such cases where there has been a lapse of procedure on the part of Faceless Assessing officer due to technical reasons or otherwise, the Court may be requested to set aside the assessment orders and remand the matters back to the Assessing Officer for passing a fresh order after following the due procedure. 7. Having regard to the fact that the offices of the petitioners were closed due to lockdown and the petitioners’ Account Officer was unavailable, this Court is of the view that the petitioners did not get an effective and meaningful opportunity to respond to the Draft Assessment Order and show-cause notices dated 21st April 2021 and 22nd 8. Keeping in view the aforesaid as well as in accordance with the statement made by the learned counsel for the respondents, the Impugned Assessment Orders dated 26 April 2021. th April 2021 and 27th April 2021 passed in W.P. (C) 8282/2021 and W.P. (C) 8280/2021 respectively, under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for AY 2018-19 are set aside and the matters Digitally Signed By:JASWANT SINGH RAWAT Signing Date:15.08.2021 10:48:50 Signature Not Verified W.P.(C) 8280/2021 & W.P.(C) 8282/2021 Page 4 of 4 are remanded back to the Respondent-Assessing Officers for taking appropriate steps in accordance with law. 9. Writ petition and applications stand disposed of in view of the above. 10. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail. MANMOHAN, J NAVIN CHAWLA, J AUGUST 12, 2021/rv Digitally Signed By:JASWANT SINGH RAWAT Signing Date:15.08.2021 10:48:50 Signature Not Verified "