Assessment order under faceless assessment scheme struck down as it is passed in gross violation of principles of natural justice

W.P. No.10433 of 2021

IN HIGH COURT OF JUDICATURE AT MADRAS

DATED: 27.04.2021

CORAM HONOURABLE DR. JUSTICE ANITA SUMANTH

W.P. No.10433 of 2019 & WMP Nos.11029 & 11032 of 2019 1

Ekambaram Sukumaran Plot No.20 Sowtambika Nagar Dasanaicken Patti Salem- 636 201 Petitioner

Vs.

1 Income Tax officer National e- Assessment Centre Delhi Room No. 401 2nd Floor E- Ramp Jawaharlal Nehru Stadium Delhi- 110 003. 2 Income Tax Officer Circle -1 (1) Salem No.3 Gandhi Rd Hasthampatti.Salem Tamil Nadu- 636 007. …Respondents

Prayer: Writ Petition filed under Article 226 of Constitution of India praying to issue Writ of Certiorari fied Mandamus to call for records of writ petitioner / Assessee on file of First respondent to quash impugned order dated 23.03.2021 passed u/s 143 (3) of Act for Assessment Year 2018-19 in DIN ITBA/ AST/ S/ 143 (3)/ 2020- 21/ 1031677259 (1) and consequently direct First Respondent to complete fresh assessment for assessment year 2018- 19 after granting reasonable /sufficient opportunity of hearing.

For Petitioner : Mr.A.S.Sriraman For Respondents : Mr.ANR.Jayaprathap Junior Standing Counsel

ORDER

Mr.ANR.Jayaprathap, learned Junior Standing Counsel, who accepts notice for respondents, has been served with copy of Writ Petition and its annexures and hence is aware of issue raised as well as dates and sequence of events that have transpired in this matter. Thus, by consent of both sides, this Writ Petition is disposed finally even at stage of admission.

2. challenge is to order of assessment dated 23.03.2021 relating to assessment year 2018-19 passed in terms of provisions of Income Tax Act, 1961 (in short ‘Act’). short point agitated is gross violation of principles of natural justice.

3. Pre-assessment notice dated 19.03.2021 was issued calling upon petitioner to show cause why assessment should not be completed in line with draft assessment order under faceless assessment scheme. In conclusion, petitioner was called upon to submit his response by 23:59 hours of 23.03.2021. However, even prior to elapse of time granted, impugned order of assessment has come to be passed on same day, i.e., 23.03.2021, one assumes during working hours. Hence, there is violation of principles of natural justice writ large of document.

4. One need hardly refer to decision of learned single Judge of this Court in case of S.Velupalandar V. Deputy Commercial Tax Officer (83 ITR 683), wherein this Court has stated that it was incumbent upon Officer to wait till end of working day when matter had been posted to finalize proceedings. This is even better case than in matter of Velupalandar (supra), since Assessing Officer had himself granted time till 23:59 hours on 23.03.2021.

5. impugned order is thus set aside. petitioner will file its response to show cause notice dated 19.03.2021 within period of two weeks from today and assessment shall be completed de novo within period of six (6) weeks from today, after hearing petitioner.

6. This Writ Petition is disposed in aforesaid terms. No costs. Connected Miscellaneous Petitions are closed.

27.04.2021

sl Index: Yes Speaking order To 1 Income Tax officer National e- Assessment Centre Delhi Room No. 401 2nd Floor E- Ramp Jawaharlal Nehru Stadium Delhi- 110 003. 2 Income Tax Officer Circle -1 (1) Salem No.3 Gandhi Rd Hasthampatti.Salem Tamil Nadu- 636 007. 4 http://www.judis.nic.in W.P. No.10433 of 2021 Dr.ANITA SUMANTH,J. sl W.P. No.10433 of 2019 & WMP Nos.11029 & 11032 of 2019 26.04.2021 5 http://www.judis.nic.in Ekambaram Sukumaran v. Income-tax officer, Delhi / Income-tax Officer Circle-1(1), Salem