'Seek Video Conferencing' Button Not to be Treated with Severity: Calcutta HC Refers to Reply to SCN, Upholds Principles of Natural Justice [Read Order]

The Calcutta High Court observed the superiority of principles of natural justice and held that a reply to a show cause notice has more value than the ‘seek video conferencing’ button available at statutory forms.

A writ petition was filed against the assessment order dated 20.03.2025 under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (IT Act) with respect to the Assessment Year 2023-24. The facts state that a show cause notice was issued against the petitioner on 04.03.2025 and an adjournment was sought against it.

The adjournment was granted on 08.03.2024 and 12.03.2024 was fixed as the date for filing reply. On 12th March, a reply was filed seeking an opportunity for personal hearing. However, the Assessing Officer (AO) proceeded to pass the final assessment order without hearing the petitioner.

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The counsel for the petitioner submitted that even after requesting an opportunity for personal hearing, no opportunity was presented in order for an appropriate order to be passed which violates the principles of natural justice. The respondent counsel submitted that the second notice issued on March 12 indicated that if the petitioner wished to avail opportunity of personal hearing then they were required to click the ‘seek video conferencing button’ against the show cause notice (SCN).

Various cases were relied upon by the petitioner such as Global Vectra Helicorp Ltd. Assessment Unit, National Faceless Assessment Centre, Delhi (2024), Williams Lea India Private Limited v. Additional/Joint/Deputy/Assistant Commissioner of Income Tax (2022) and Satish Kumar Bansal Hug v. National Faceless Assessment Centre (2024) to contradict the argument that no hearing was available if so not availed by the mode indicated in SCN.

The Calcutta High Court reiterated that if the assessee specifically asks for an opportunity of personal hearing at the time of assessment, the AO must afford this opportunity before passing the assessment order. The High Court held that although oral hearing is not necessary in every case and is not an absolute right, the same cannot be curtailed on technical grounds.

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The Court further relied on the Williams Lea India Private Limited case which had rejected the contention of Revenue authorities of clicking the ‘seek video conferencing’ button for an opportunity of personal hearing. The High Court of Calcutta concurred with the view of High Courts of Madras, Allahabad and Delhi to hold that when a specific request for personal hearing is made, the same should be considered by the AO before passing of an assessment order.

To conclude, the single bench of Justice Om Narayan Rai held that the AO shall pass fresh assessment after a personal hearing through video conferencing with the petitioner and their order must provide reasons for their assessment done. It was held that all matters of merit are to be decided by the AO after this opportunity of personal hearing.

Creative Poly Packs Pvt. Ltd. vs Assessment Unit, Income Tax Department & Ors. , 2026 TAXSCAN (ITAT) 231 , WPA 8698 of 2025 , Mr. Ramesh Kumar Patodia Mr. Megha Agarwal , Mr. Prithu Dudharia