Shamrock Chemie Pvt. Ltd. V. National E-Assessment Centre

SCA/17628/2021

AI Insights

In the case of Shamrock Chemie Pvt. Ltd. versus the National E-Assessment Centre, the petitioner challenged an assessment order on the grounds of violation of natural justice. The petitioner argued that despite requesting additional time to respond to the draft assessment, the request was ignored, and the assessment proceeded without their input, particularly citing the difficulties posed by the COVID-19 pandemic. The respondents countered that the petitioner had not responded to several notices prior to the assessment. The court, referencing a similar case, found in favor of the petitioner, emphasizing the need for procedural fairness and the impact of the pandemic on the ability to respond.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 686773 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 17-08-2022
• Assessment Year: misc
• Other Referred Cases: Virdichand Bawandas HUF Karta of HUF Pawankumar Virdhichand Agrawal Vs The National E- Assessment Center in Special Civil Application No.12864 of 2021
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M R BHATT CO
• Assessee Lawyers: DARSHAN PATEL
• Keywords: Assessment Order; Covid-19; Draft assessment; Natural Justice; Pandemic; Writ of Certiorari
• Section: 147; 143(3); 274; 270A; 144B; 156; 144(b)

Judgement Text

"C/SCA/17628/2021 ORDER DATED: 17/08/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 17628 of 2021 ========================================================== SHAMROCK CHEMIE PVT. LTD. Versus NATIONAL E-ASSESSMENT CENTRE ========================================================== Appearance: DARSHAN R PATEL(8486) for the Petitioner(s) No. 1 M R BHATT & CO.(5953) for the Respondent(s) No. 1,2 ========================================================== CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI Date : 17/08/2022 ORAL ORDER (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR) 1. Though the matter is listed for admission, by consent of learned advocates appearing for the parties, the matter is taken up for final disposal. 2. We have heard the arguments of Mr.Darshan Patel, learned counsel appearing for the petitioner and Mr.Munjal Bhatt, learned counsel appearing for M.R.Bhatt & Co, Standing Counsel for the respondents – department. 3. Perused the record. 4. Petitioner is seeking for issuance of writ of certiorari, i.e. to quash the assessment order dated Page 1 of 5 C/SCA/17628/2021 ORDER DATED: 17/08/2022 23.9.2021 passed under section 147 read with section 144- B of the Income Tax Act 1961 (“the Act” for short). 5. Though several grounds are urged in the petition, we have noticed that thrust of the arguments of Mr.Darshan Patel, learned counsel appearing for the petitioner is that impugned assessment order has been passed in violation of principles of natural justice i.e. despite time sought for to respond to draft assessment, same was not granted and an application filed for adjournment was not considered by ignoring the fact that pandemic Covid 19 was prevalent at the relevant point of time and as such petitioner or its authorized representative could not appear. 6. Per contra, Mr.Munjal Bhatt, learned counsel appearing for the respondents would oppose the said prayer by contending that impugned assessment order was preceded by several notices which were not responded to by the petitioner and as such, he cannot take umbrage under the guise of their being violation of principles of natural justice. Hence, he seeks for dismissal of the petition. 7. Having regard to the facts of the present case and grounds urged in the petition and taking note of the fact that in identical circumstances, the coordinate bench in the case of Virdichand Bawandas HUF Karta of HUF Pawankumar Virdhichand Agrawal Vs The National E- Assessment Center in Special Civil Application No.12864 of 2021 disposed of on 5.7.2022 had remanded the matter back to the Assessing Officer for making a fresh assessment Page 2 of 5 C/SCA/17628/2021 ORDER DATED: 17/08/2022 proceedings from the stage of draft assessment order, we are of the considered view similar order deserves to be passed in the instant case. The coordinate bench had held : “5.4 The above stand reflects, to say the least, the thick skinned approach on part of the Taxing Authorities. We fail to understand when the assessment was to be finalized before 30.06.2021, what prevented the Department from granting time to the petitioner – assessee upto 06.06.2021. 5.5 The assessee congenial approach should be reflected not only in the application of taxation laws but also in the procedural mechanism to be applied towards assessee in treating him for the purpose of tax. It hardly stood to reason that the department refused the request of the assessee for grant of time to file his response to the draft assessment order. There was sufficient time available for the final assessment to be made. Furthermore, it was pandemic time when the department should have adopted liberal approach in refusing the request for time for filing objection to the draft assessment order and finally passing the assessment order. The department acted thick skinned. 6. For the above reasons, the petitioner deserves to be granted a relief. The assessment order dated Page 3 of 5 C/SCA/17628/2021 ORDER DATED: 17/08/2022 27.05.2021 under section 143(3) read with Section 144B of the Act as well as the notice dated 27.05.2021 under Section 274 read with Section 270A of the Act are hereby set aside. 6.1 The assessment proceedings are remanded to the Assessing Officer to be taken up afresh from the stage of the draft assessment order. The Assessing Officer shall pass appropriate order after giving opportunity to the petitioner to file reply. 6.2 The entire assessment proceedings culminating into the final assessment order shall be completed within twelve weeks from the date of receipt of this order.” 8. Here, impugned order is set aside / quashed on the ground of breach of natural justice. We proceed to pass the following ORDER (i) Order dated 23.9.2021 passed under section 147 read with Section 144B of the Act and consequential demand notice dated 23.9.2021 issued under section 156 of the Act are hereby quashed. (ii) Assessment proceedings stands Page 4 of 5 C/SCA/17628/2021 ORDER DATED: 17/08/2022 remanded to the Assessing Officer to conclude assessment proceedings afresh from the stage of draft assessment order. (iii) Assessing Officer shall pass an order in accordance with law after giving an opportunity to the petitioner to file its reply. The entire assessment proceedings culminating into final assessment order shall be completed within three months from the date of receipt of copy of this order. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) H.M. PATHAN Page 5 of 5 "