Service Now Software Development India Private Limited V. Assessment Unit, IT Department, National E-Assessment Center and Assistant Commissioner of Income Tax, Circle 3(1)

WP/10685/2025

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The case involves Service Now Software Development India Private Limited, represented by its employee Sandeep Nalluri, challenging a draft assessment order issued by the Income Tax Department. The petitioner argued that the time granted to respond to a show cause notice was insufficient, violating procedural norms. The court found that the petitioner was not given the requisite seven days to respond as stipulated in the Standard Operating Procedure (SOP) issued by the CBDT, leading to the setting aside of the draft assessment order and remitting the case back for fresh proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 798130 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 16-04-2025
• Assessment Year: misc
• Laws Referred To: Article 226 of the Constitution of India, Section 144 C (1) of the Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: BOKARAO SAPNA REDDY
• Assessee Lawyers: PERCY PARDIWALA
• Keywords: Draft Assessment Order; Quashing of order; Show cause notice; Writ of Certiorari; Seven days response time
• Section: 144C(1)

Judgement Text

"13447 ) HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION NO: 10685 OF 2025 Between: Service Now Software Development lndia Private Limited, 1s!2nd fforors, Unit No. 02 and 10th - 16th floors, Unit No. 01 and 02 (Argus Block), Knowledge City, Survey No. 83/1 , lnorbit Mall Road, Raidurg Panmaktha Village, Serilingampally Mandal, Ranga Reddy District, Hyderabad- 500081, Telangana. Rep by its employee Sandeep Nalluri S/o. Kishore Babu Nalluri, Aged about 36 years, Occ: Payroll Senior Manager, Rl/o. Villa No. 10/A, Sitarama Homes, Bachupally, Nizampet Road, Hyderabad - 500090, Telangana, lndia ...PETITIONER AND I Assessment Unit, lT Department, National E-Assessment Center, Room No. 401 ,2nd Floor, E-Ramp, Jawaharlal Nehru Stadium, New Delhi -1 10003. Assistant Commissioner of lncome Tax, Circle 3(1) Signature Towers, Sy. No. 6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp. Botanical Gardens, Serlingampally (M), R. R. District, Hyderabad, Telangana, 500084 ...RESPONDENTS Petition under Article 226 ot the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Direction or Order, particularly one in the nature of Writ of Certiorari calling for records and quashing a.lmpugned Order dated 20.03.2025 vide ITBA/AST/F/'144C12O24- 2511074764315(1) issued by the Respondent No. 1 as illegal, arbitrary, violative of Article 14 and 19(1Xg) of the constitution of lndia b.and pass 2 lA NO: 'l OF 2025 Petition under Section 15i CpC praying that in the circumstances stated in the affidavit fited in support of the petition, th\" Hish c\";;;;;,*.:\"i,\" dispense with firing of certified copy of *r\" rrprgnuo order issued by the Respondent No' 1 to the petitioner vide DrN No. ''BA/AST/ Ft144C/2024- 251 1 07 47 6 431 S( 1 ) dated 20.03.2025 for assessmen t year 2022-23. IANO:2OF 2025 petition under section 151 cpc praying that in the circumstances stated in the affidavit fired in support of the petition, the High court may be preased to suspend the Impugned order dated 20.03.2025 issued by Respondent No. 1 vide ITBA/ASTiF/144C/2024-25/1O24764315(1) during the pendency of this Writ Petition in the interest of justice. Counset for the petitioners: SRt pERCy pARDIWALA, REpRESEhtTING SRI BASIREDDY NARENDAR Ni-OO .. \"'\" Counsel for the Respondents: lU^S. BOKARAO SAPNA REDDY, sc FOR THE TNCOME rax oEpenrrvrerur The Court made the following: ORDER THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION No.1O685 OF 2o25 ORDER (per Han'ble Sn Justice P.Sam Koshgl Heard Mr.Percy Pa_rdiwala, learned Senior Counsel representaing Mr.Basireddy Narendar Reddy, learned counsel for the petitioner and Ms.Bokaro Sapna Reddy, learned Standing Counsel for the Income Tax Department. Perused the record. 2. The challenge in the present writ petition is to the draft assessment order passed under Section 144 C (1) of the Income Tax Act 196 I (for short 'the Act) dated 20.O3.2025. 3. One of the foremost challenge to the impugned order was that having issued a show cause notice dated 04.03.2025. Tine petitioners were required to be given seven days time to respond to the show cause notice. However, they were just granted less than four days time. During which time, the petitioners did give two responses i.e., on 07.03.2025 and the other response was filed on 12.03.2025 and the authorities have proceeded further ignoring the response that was subsequently {iled on l2-O3.2O25 and have passed the order under Section 144 C (l) of the Act, leading to the filing of the present writ petition. -.----------- F-: . Page 2 of 3 4. On the question as to whether is it not required to give seven days notice to the assessee while show cause notice issued in term of the SOP O3.O8.2O22. The learned Standing Counsel contended that from the same SOP also says that in a given case seven days requirement can be curtailed. Nonetheless, ir is admitted that in the instani case seven days time was not granted to the petitioners herein. 5. The show cause notice in the instant case was one which was dated 04.03.2025 and therefore we do not find any justiliable reasons available for the respondent department for not granting the seven days response time alter the show cause notice was issued as is t siipulated in the SOP issued by the CBDT on 03.O8.2022. 6. It is also not a case made out by the respondents that in the given circumstances there was this period of limitation which was coming in their way so as to curtail the seven days period which is otherwise required as a matter of fact. 7 . In view of the said fact for this reason itself, we are inclined to entertain the writ petition and set aside the draft assessment order I passed under Section 144 C (1) of the Act and are further inclined to remit the matter back to the concerned authorities to proceed and decide the matter afresh from the stage. of the issuance of show cause i.e., the proceedings as it stood on 04.O3.2025. ffi Pate 3 of 3 8. Since we are inclined to remit the matter back to the concerned authorities, let the petitioner file a detailed response within a period of seven days from the date of receipt of copy of this order and subsequently the respondent authorities may proceed in accordance with law and pass appropriate order based upon the defence that the petitioners would be taking in the response to the show cause notice. g. It is made it ciear that since we a-re granting seven days time from the date of receipt of copy of this order, there will be no requirement of issuance of fresh notice for response to be filed by the petitioners to the sho'ut, cause notice dated 04.03.2025. ll shall also be the responsibility ol the petitioner to upload the order passed by this Bench in the present writ petition so far as setting aside of the draft order dated 20.O3.2025 passed under Section 144 C (1) of the Act' 10. Accordingly, this writ petition stands disposed of' There shall be no order as to costs. As a sequel, miscellaneous applications pending if any, shall stand closed. SD/- A. JAYASREE ISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, '1 . Assessment Unit, IT Department, National E- ment Center, Room No. 4O1,2nd Floor, E-Ramp, Jawaharlal Nehru Stadi um, New Delhi -1 10003 2. AssistantCommissioner of lncome Tax, Circle 3(1) Signature Towers, Sy. No. . Botanical Gardens, 6(P) of Kondapur, Sy.37(P) of Kothaguda, Opp ), R. R. District, Hyderabad, Telangana, 500084 I I J 4 5 Serlingampally (M One CC to Sri Ba One CC to Ms. Bokaro Sapna Reddy, SC for lncome Two CD Copies sireddy Narendar Reddy. Advocate toPUCl Tax Department[OPUC] TJ KV Pmc, I I HIGH COURT DATED:1610412025 ORDER WP.No.10685 of 2025 3 22 I'IAY 2[25 prE S I*; € ( t I a. c .(: t t')FspatrlHf- DISPOSING OF THE WRIT PETITTON WITHOUT COSTS r-\"trl\"{ ( "