Calcutta HC dismiss Writ Petition on Availability of Appeal under Income Tax Act [Read Order]

In a recent case, the Calcutta High Court dismiss writ petition on availability of appeal under Income Tax Act, 1961. The Court viewed that since an efficacious remedy in the form of appeal is available, the petitioner is granted liberty to file an appeal from the order.

M/s. Shalimar Wire Industries Ltd, the petitioner challenged the order of assessment passed under Section 143(3) of the Income Tax Act, 1961 ( “Said Act” ) read with Section 144B of the said Act. Records reveal that the aforesaid order was preceded by a notice under Section 143(2) of the said Act in respect of the returned income of the petitioner for the assessment year 202223. It is not in dispute that subsequently notices under Section 142(1) of the said Act was issued on 2nd November 2023 as also on 14th December 2023.

The faceless assessment unit had issued a show cause for the assessment year 2022-23, calling upon the petitioner to respond to the proposed variations provided for therein. Particulars of the proposed variations were duly indicated in the said show cause notice. The petitioner was offered opportunity to respond to the same by either accepting the proposed variations or in the alternative, by filing its written response objecting to the same on or before 18th March 2024.

The petitioner on 18th March 2024 instead of filing its response to the show cause had sought for an adjournment. By an order dated 19th March 2024 the faceless assessment unit taking into consideration the fact that further delay would result in the proceeding getting time barred, had granted limited opportunity to the petitioner to respond to the show cause dated 11th March 2023, latest by 22nd March 2024.

The petitioner contended that on 22nd March 2024 although, the petitioner had attempted to upload its response along with all documents at around 17.33 hours, the online portal did not permit the petitioner to upload the response as the “submit response” button had been deactivated. It is in such circumstances that the petitioner on 22nd March 2024 at around 18.55.48 hours had uploaded its response to the Samadhan Portal recording the above development.

The petitioner by placing reliance on an email communication dated 26th March 2024 submitted that the samadhan portal had forwarded the petitioner’s response to the faceless assessment unit only on 26th March 2024 at around 11.00 A.M. and by such time the assessment order dated 25th March 2024 had already been uploaded. As such, the faceless assessment unit, without considering the petitioner’s response had disposed of the said proceedings.

It was submitted that this Court may be pleased to set aside the assessment order and to remand back the matter to the faceless assessment unit, for re-determining the issue based on the response filed by the petitioner.

The respondents submitted that the assessment order which has been called in question is appealable. Admittedly, the writ petition has been filed beyond 30 days from the date of passing of such order. Ordinarily, the time to file the appeal against the assessment order passed under Section 143(3) of the said Act, read with Section 144B of the said Act is 30 days. There is no explanation for the delay in filing the writ petition.

No explanation has also been offered by the petitioner as to what prejudice the petitioner had suffered by reasons of non-consideration of the petitioner’s reply. The purported reply to the show cause filed with the samadhan portal has also not been disclosed. No case for interference has been made out and as such the writ petition should be dismissed with costs.

A single bench of Justice Raja Basu Chowdhury viewed that 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, the Court viewed that justice would be subserved if the petitioner is granted liberty to file an appeal from the order dated 25th March 2024.

Further held that “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 6 weeks  from the date of filing of the appeal subject to compliance of other formalities by the petitioner, in accordance with law.”

Mr. S.M.Surana appeared for the appellant and Mr. Prithu Dudhoria appeared for the respondent.

To Read the full text of the Order CLICK HERE

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