Tanu Jain V. National Faceless Assessment Centre

CWP/9900/2022

AI Insights

The case involves a writ petition filed by Tanu Jain challenging a re-assessment order issued by the National Faceless Assessment Centre under the Income Tax Act, 1961. The petitioner argued that the re-assessment order was passed in undue haste, violating the principles of natural justice. Specifically, the petitioner highlighted that the draft assessment order was issued at 4:59 AM on 29.03.2022, requiring a response by the same day at 11:59 PM, followed by the re-assessment order being issued the next day. The court, acknowledging the procedural impropriety, set aside the re-assessment order and allowed the respondents to initiate the process afresh, emphasizing the need for a fair and transparent procedure.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798425 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 20-09-2022
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: RAJESH KATOCH; PRIDHI SANDHU
• Assessee Lawyers: DIVYA SURI
• Keywords: Draft Assessment Order; Natural Justice; Re-assessment order; Show cause notice
• Section: 147; 144(b)

Judgement Text

" IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH CWP-9900-2022 (O&M) Date of Decision:20.09.2022 Tanu Jain .......Petitioner Versus National Faceless Assessment Centre and others ......Respondents CORAM: HON'BLE MR. JUSTICE TEJINDER SINGH DHINDSA HON'BLE MR. JUSTICE DEEPAK MANCHANDA Present:- Mr. Divya Suri, Advocate for the petitioner. Mr. Rajesh Katoch Sr. Standing Counsel and Ms. Pridhi Jaswinder Sandhu, Jr. Standing Counsel for respondents. ***** TEJINDER SINGH DHINDSA J.(Oral) Challenge in the instant writ petition is to the re-assessment order dated 30.03.2022 (Anenxure P-13) under Section 147 read with Section 144- B of the Income Tax Act, 1961. The precise case projected on behalf of the petitioner is that the impugned order has been passed in undue haste and in negation of the principles of natural justice. The specific averments in such regard have been made in Para 20 Ground B to the effect that the draft assessment order/show cause notice dated 29.03.2022 (Annexure P-12) was issued to the petitioner at 4.59 A.M. calling upon the assessee to furnish a reply on the same date i.e. 29.03.2022 by 23.59 P.M. and the impugned re-assessment order was passed on the very next day i.e. 30.03.2022. SHWETA 2022.09.23 12:01 I attest to the accuracy and integrity of this document CWP-9900-2022 (O&M) -2- The instant writ petition had come up for preliminary hearing before this Court on 11.05.2022. On the next date of hearing i.e.10.08.2022, Mr. Rajesh Katoch, learned Senior Standing Counsel had entered appearance on behalf of respondents and has sought time to complete instructions. Even though a reply to the writ petition has not been filed yet learned counsel representing the respondents during the course of hearing does not dispute the factual premise that has been asserted in the petition and particularly with regard to averments made in para 20 Ground B. There would be no gainsaying that the assessee ought to have been furnished a reasonable time to respond to the draft assessment order/show cause notice so as to comply with the principles of natural justice. The same would also be inconsonance with a fair and transparent procedure. In view of the above and without opining on the merits of the case, the impugned re-assessment order dated 30.03.2022 (Annexure P-13) is set aside. Liberty is granted to the respondents to proceed afresh in the matter as regards framing of re-assessment order de novo from the stage of issuance of the draft assessment order/show cause notice dated 29.03.2022 and conclude proceedings within a period of six months from today after affording due and adequate opportunity to the assessee. It is, however, clarified that the impugned re-assessment order dated 30.03.2022 (Annexure P-13) has been set aside only on the ground that SHWETA 2022.09.23 12:01 I attest to the accuracy and integrity of this document CWP-9900-2022 (O&M) -3- due opportunity had not been afforded to the assessee to respond to the draft assessment order/show cause notice dated 29.03.2022 and this Court has not delved into the merits of the case. Disposed of. (TEJINDER SINGH DHINDSA) JUDGE (DEEPAK MANCHANDA) JUDGE 20.09.2022 shweta Whether speaking/reasoned : Yes/No Whether reportable : Yes/No SHWETA 2022.09.23 12:01 I attest to the accuracy and integrity of this document "