2022 (5) TMI 1102 - HC - Income Tax

Assessment under Faceless Assessment Scheme u/s 144B - petitioner / assessee has to upload the documents only through the web portal - as submitted sincere attempt has been made by the petitioner to upload the documents, due to some technical glitches in the web portal, the petitioner/assessee could not upload the documents and reply - HELD THAT - It is the admitted case on the part of the Revenue that, on the last date ie., on 11.06.2021, which was given to the petitioner to reply ie., upto which the web portal of the respondent was not functioning because of technical glitches. This has been admitted by the communication of the Revenue dated 12.06.2021. Subsequently also, though it is stated by the learned Standing Counsel that, sometime in July 2021 it started functioning, it is the case of the petitioner that till September 2021, it was not working. Assuming that the web portal started functioning from September 2021, from which date exactly it started working without any glitches could not be ascertained now and moreover, in the meanwhile since the order of assessment has been passed on 14.07.2021, without waiting for the reply to be submitted by the petitioner after the web portal started functioning, the said order which is now impugned herein, in the considered opinion of this Court, is certainly vitiated because the chance of giving reply by the petitioner since has been denied, or the Revenue has not waited till the technical glitches are resolved, enabling the petitioner to make a reply before which as the Revenue has come forward to pass the order on 14.07.2021, this Court has no hesitation to hold that the said order does not stand in the legal scrutiny. WP allowed. The matter is remitted back to the respondents for reconsideration. While reconsidering the same, the respondents shall give a fresh notice to the petitioner giving time to reply either through E-assessment system under Section 144B.

Summary

Issues:
1. Petition seeking Writ of Certiorarified Mandamus to quash an illegal order in Income Tax assessment for the year 2018-19.
2. Technical glitches preventing petitioner from uploading documents for assessment.
3. Allegation of violation of principles of natural justice due to assessment order being passed without petitioner's reply.
4. Dispute regarding functioning of web portal for document submission.

Analysis:
1. The petitioner sought a Writ of Certiorarified Mandamus to challenge an order in the Income Tax assessment for the year 2018-19. The petitioner, under the Faceless Assessment Scheme, faced technical glitches preventing the uploading of necessary documents through the web portal within the stipulated time frame, despite sincere attempts. The petitioner communicated this issue to the Revenue, who acknowledged the problem and advised uploading once the system resumed operation.

2. The Revenue contended that the web portal was functional from July 2021, suggesting the petitioner could have uploaded documents then. However, the petitioner maintained that technical issues persisted until September 2021. The Court noted the admission by the Revenue that the portal was non-functional on the last date for the petitioner to reply, as confirmed by a communication dated 12.06.2021.

3. The Court found that even if the portal started working in September 2021, the exact date without glitches was uncertain. The assessment order passed on 14.07.2021 without waiting for the petitioner's reply post-portal functionality was deemed a violation of natural justice principles. Consequently, the Court set aside the impugned order, emphasizing the importance of providing the petitioner with a fair opportunity to respond before finalizing the assessment.

4. As a result, the Court disposed of the writ petition by remitting the matter back to the respondents for reconsideration. The respondents were directed to issue a fresh notice to the petitioner, allowing time for a reply through the E-assessment system or other means. The Court emphasized the necessity of granting the petitioner an opportunity to respond and submit documents before proceeding with the assessment and passing a final order.