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2022 Supreme(Guj) 1444
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, MAUNA M. BHATT, JJ.
DANGEE DUMS LIMITED – Petitioner
Versus
THE NATIONAL FACELESS ASSESSMENT CENTRE – Respondent
Special Civil Application No. 14461 of 2021
Decided On : 20-12-2022
Advocate Appeared:
For the Petitioners: TUSHAR HEMANI, KAMYA MANIT SHAH.
For the Respondents: VARUN K. PATEL, DEV D. PATEL.
Headnote:
Companies Act, 1956 - Income Tax Act, 1961 - Section 143(3), 142(1), 144B - Assessment Year - Filing of reply - Show cause notice - Request of grant of 20 days - Grievance is with regard to non response to request of grant of 20 days or permitting filing of reply to show cause notice - Quash and set aside impugned Assessment Order as well as demand notice for Assessment Year – Held, Petitioner contended that his adjournment application requesting for time for at least 20 days, was not rejected nor granted and he was rightly under a bona-fide belief that fresh notice for fixing date of hearing shall be issued - Insistence on part of respondent that petitioner also could have been vigilant enough to make a request once again if he had not heard in 20 days’ time is surely worth noting and it is also noteworthy further that only after assessment order was passed after 50 days that he has woken up from his slumber - Without endorsing to that conduct of petitioner, Court need to categorically hold that, that hardly is a ground to deny an opportunity to petitioner who was all throughout clueless on next date of hearing - Let opportunity be given to petitioner – Court restore matter from stage at which it was - Respondent is directed to give an opportunity to petitioner by granting time of two weeks to respond to show cause notice from date of receipt of copy of this order - Petition disposed of.
ORDER :
1. The petitioner’s company incorporated under the Companies Act, 1956, during the Assessment Year 2018-19, was engaged in production and retail selling of cakes, pastries and ice cream and outdoor catering services. The petitioner filed return of income for the year under consideration declaring total income as NIL after setting off brought forward loss. Petitioner’s case for the year under consideration was selected for limited scrutiny assessment under section 143(3) of the Act. It was carried on in a faceless manner by the respondent i.e. The National Faceless Assessment Centre, Government of India, Ministry of Finance, Department of Revenue, North Block, New Delhi.
It is the case of the petitioner that various details were called for from time to time and the same were duly furnished by the petitioner.
2. Between 23.03.2021 to 01.04.2021, the respondent vide its notice dated 23.03.2021 issued under section 142(1) of the Act, called upon the petitioner to furnish certain details on or before 30.03.2021. The petitioner requested for adjournment of one week on 30.03.2021. On 31.03.2021, the respondent acceded to such request and granted 6 days instead of 7 days. On 23.04.2021, the respondent prepared a draft assessment order determining the total income of the petitioner and sent the same to the petitioner through the show cause notice dated 23.04.2021 calling upon the petitioner to show cause as to why the assessment should not be completed as per the draft assessment order.
It is the say of the petitioner that response was needed to be submitted through the registered e-filing account by 23:59 hours of 26.04.2021. It had also permitted the petitioner to make request for personal hearing so as to make oral submissions or present the case after filing of written reply and on approval of such request, personal hearing was stated to be conducted exclusively through video conference.
3. It was a time when owing to Covid-19 pandemic, the Government of India, vide Press Release dated 24.04.2021, extended the time limit for framing assessment from 30.04.2021 to 30.06.2021. A separate notification dated 27.04.2021 was also issued in respect of the same.
4. It is the case of the petitioner that on 26.04.2021, the petitioner requested for adjournment of at least 20 days for furnishing detailed reply. Draft assessment order since was issued on 23.04.2021 and within three days the reply was to be filed i.e. on or before 26.04.2021, it was not feasible for the petitioner to so do it because of Covid-19 pandemic situation and hence, he sought for 20 days’ time.
It is the case of the petitioner that he waited for the respondent to reply or to issue a fresh notice for fixing next date of hearing in view of the adjournment application. However, no such fresh notice was received by the petitioner. The son of the Accounts Head of the petitioner also tested positive with Covid-19 on 01.05.2021 and he was under home quarantine. Because of this, Accounts Head of the petitioner could not attend the official work as they were residing under the same roof.
5. It is further say of the petitioner that Income Tax Department was going to launch its new e-filing portal on 07.06.2021, which was aimed at providing convenience and seamless experience to the taxpayers. Hence, vide notification dated 20.05.2021, CBDT informed the stakeholders that in preparation for the aforesaid launch and for migration activities, existing portal of Department at www.incometaxindiaefiling.gov.in would not be available to the taxpayers as well as to the other external stakeholders for a brief period of 6 days i.e. from 01.06.2021 to 06.06.2021. The new e-filing portal also had various technical glitches and many of them have continued thereafter.
It is the say of the petitioner that in the midst of all these, the respondent straightway passed final assessment order on 16
