The Delhi High Court set aside the assessment order passed under the Income Tax Act,1961 whereby the request of hearing via video conferencing was denied. The Court directed the Assessing Officer to decide afresh.
The petitioner, Karuna Abhushan Private Limited challenged the assessment order dated 18.05.2023. Mr Prakash Kumar, who appeared on behalf of the petitioner/assessee, says that there has been a breach of principles of natural justice.
It was alleged that the petitioner/assessee filed a reply in response to the show cause notice issued concerning the proposed variation of income dated 09.05.2023, which was not taken into account. Second, although a request for a grant of hearing via videoconferencing was made, the same was not provided.
Mr Kumar stated that an adjournment request was made through the designated portal at midnight on 11th/12th May 2023. It was also emphasized that the petitioner had made a request for a hearing through video-conferencing. The petitioner had filed a detailed reply.
Mr Abhishek Maratha, senior standing counsel, who appeared on behalf of the respondents/revenue, stated that he will have to take instructions concerning the submissions made by Mr Kumar before us.
As would be evident from the aforementioned extract, concerning the order dated 12.07.2023, we had indicated that if instructions are received to resist the writ petition, a counter-affidavit will be filed.
Mr Abhishek Maratha, senior standing counsel, who appeared on behalf of the respondents/revenue, has, however, returned with instructions that seem to indicate that the ITBA Technical Team has informed the Assessing Officer (AO) that the petitioner’s/assessee’s request for video-conferencing, which was received on 12.05.2023, was not actioned upon by the Faceless Assessing Officer (FAO). This input is based on the system log.
“According to us, the system log is, perhaps, presently, the best available proof of whether the request for hearing via video-conferencing did fructify. Given the fact that the petitioner has made an assertion concerning denial of hearing that has not been refuted, as a counter affidavit has not been filed, we have no good reason to disbelieve the petitioner.”, the Court observed.
A division bench comprising Justice Rajiv Shakdher and Justice Girish Kathpalia viewed that “the best way forward would be to set aside the impugned assessment order dated 18.05.2023 with liberty to the AO to pass a fresh order, albeit, as per law. The AO will have the liberty to pass a fresh assessment order after abiding by the principles of natural justice.”
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