2024 (6) TMI 602 - HC - Income Tax

Validity of order of assessment passed u/s 143 (3) r/w sec 144B - violation of principles of natural justice - writ petition has been filed beyond 30 days from the date of passing of such order - HELD THAT - Admittedly, prior to issuance of the order notices u/s 143 (2) and 142 (1) of the said Act had been issued. The petitioner had duly responded to the same. In this case, the petitioner was well aware that the time for completion of the proceedings was about to expire on 31st March 2024. Notwithstanding the aforesaid the petitioner instead of responding to the notice dated 11th March 2024 had sought for an adjournment on 18th March 2024. At the instance of the petitioner time to file its response was extended till 22nd March 2024. From the documents on record it would appear that the petitioner had attempted to file its response after 5.00 P.M. on 22nd March 2024, i.e., beyond the office hours. The communication made by the petitioner to the samadhan portal has also not been disclosed. The petitioner has failed to identify what prejudice was caused to the petitioner by reasons of the assessing officer not considering its response and/ or whether the response submitted by the petitioner was different from the previous response submitted by the petitioner to the notice issued u/s 143 (2) of the said Act. It would appear that the order passed u/s 143 (3) of the said Act is an appealable order. Although, the petitioner has attempted to made out a case of violation of principles of natural justice in absence of the petitioner being able to demonstrate the prejudice caused, the petitioner cannot be entitled to the reliefs as prayed for. However, taking into consideration the fact that an efficacious remedy in the form of appeal is available, that justice would be subserved if the petitioner is granted liberty to file an appeal from the order dated 25th March 2024. If such appeal is filed within a period of 15 days from date along with an application for condonation of delay, the appellate authority, upon condoning the delay, shall hear out and dispose of the appeal on merits taking into consideration the response given by the petitioner and the grounds raised by the petitioner in the appeal, preferably within a period of 6 weeks from the date of filing of the appeal subject to compliance of other formalities by the petitioner, in accordance with law.

Issues involved: Challenge to assessment order u/s 143(3) of the Income Tax Act, 1961 and violation of principles of natural justice.

Summary:
The petitioner filed a writ petition challenging the assessment order dated 25th March 2024 passed u/s 143(3) of the Income Tax Act, 1961, along with Section 144B. The petitioner had received notices u/s 143(2) on 2nd June 2023, and u/s 142(1) on 2nd November 2023 and 14th December 2023. The faceless assessment unit issued a show cause on 11th March 2024, allowing the petitioner to respond by 18th March 2024. Despite seeking an adjournment on 18th March 2024, the petitioner was granted until 22nd March 2024 to respond. However, technical issues prevented the petitioner from uploading the response until 22nd March 2024. The petitioner claimed that the response was forwarded to the assessment unit on 26th March 2024, after the assessment order had been uploaded, thus denying the petitioner the opportunity to respond to proposed variations.

The respondent argued that the assessment order was appealable, and the writ petition was filed beyond the 30-day limit for appeals. They contended that no explanation was provided for the delay in filing the petition or the prejudice suffered by the petitioner due to non-consideration of the response. The respondent also highlighted that the purported response filed with the samadhan portal was not disclosed. The respondent urged for the dismissal of the writ petition.

The Court noted that the petitioner was aware of the impending deadline for proceedings to conclude by 31st March 2024. Despite the extension granted, the petitioner failed to file the response within office hours on 22nd March 2024. The Court found that the petitioner did not demonstrate the prejudice caused by the assessing officer's non-consideration of the response. While acknowledging the appealable nature of the order, the Court granted the petitioner liberty to file an appeal within 15 days from the date, along with an application for condonation of delay. The appellate authority was directed to dispose of the appeal within 6 weeks, considering the petitioner's response and grounds raised.

The writ petition was disposed of with directions for the petitioner to pursue the appeal route within the specified timeline. No costs were awarded, and parties were instructed to comply with necessary formalities for obtaining a certified copy of the order.

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