Kag India Pvt. Ltd v. Assistant Commissioner Of Income Tax Corporate Circle - 4(2) Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 03.09.2020 THE HONOURABLE DR. JUSTICE ANITA SUMANTH W.P. No.34483 of 2019and WMP.No.35186 of 2019 KAG India Pvt. Ltd. 264/ 15 Sathiyanathan Complex, Velachery RoadTambaram East Chennai – 600059. .. Petitioner Vs. Assistant Commissioner of Income Tax Corporate Circle - 4(2) Room No. 4334th Floor Main Building Ayakar Bhavan 121 MG Road Nungambakkam Chennai – 600034. .. Respondent Prayer: Writ Petition filed under Article 226 of theConstitution of India praying Writ of Certiorarified Mandamusto call for the entire records of the Respondent contained inthe impugned order dated 19.11.2019 passed by the Respondentunder Section 143(3) r/ w Section 147 of the Income Tax Act1961 for PAN. for AY 2014-15 along with allconsequential orders issued thereto and to quash the same,as arbitrary unjust and illegal, and to consequently directthe Respondent to provide the Petitioner with an opportunityof hearing before taking any further steps to re-assess theincome of the Petitioner for PAN. for AY 2014-15. For Respondent : Mrs.Hema MuralikrishnanSenior Standing Counsel Heard Mr.Suhrith Parthasarathy, learned counsel for thepetitioner and Mrs.Hema Muralikrishnan, learned SeniorStanding Counsel for the respondent. 2. The challenge is to an order of assessment dated19.11.2019 passed under the provisions of the Income Tax Act,1961 (in short ‘Act’) for the assessment year 2014-15. 3. Though the petitioner has raised various grounds inthe writ petition, the preliminary ground agitated and pursuedPage numbers https://hcservices.ecourts.gov.in/hcservices/ before me is the violation of principles of natural justice onthe basis that the impugned order of assessment is preceded bya show cause noticed dated 06.11.2019, listing the matter forfinalization on 11.11.2019 at 11:00 a.m. According to thepetitioner, while all prior notices and communications havebeen received by e-mail, this show cause notice was onlyuploaded on the website and thus had not come to itsattention. On the ground that the petitioner did not appearfor the hearing on 11.011.2019, as scheduled, the AssessingOfficer has proceeded to pass the impugned order. 4. There is no serious dispute to the position that theshow cause notice dated 06.11.2019 has only been uploaded andnot served by e-mail. 5. In the light of the aforesaid, I am of the view thatthe petitioner has not been granted an effective opportunityto state its case before the Assessing Officer. It isrelevant to note that it is only at the stage of show causenotice that the issue to be decided in assessment iscrystallised and communicated to the assessee and it is thusincumbent upon the Officer to have ensured that such noticewas properly served and sufficient time granted to the assesseto respond prior to finalisation of assessment. 6. In the light of the discussion as aforesaid, theimpugned order of assessment dated 19.11.2019 is set aside.The petitioner will appear before the Assessing Officer onFriday, the 18[th] of September, 2020, without expecting anyfurther notice in this regard, armed with a reply to the showcause notice. After considering the reply and any othermaterials that may be furnished by the petitioner, theassessment shall be completed within a period of six (6) weeksthereafter. 7. This writ petition is disposed in the aforesaid terms.Consequently, connected miscellaneous petition is closed. Nocosts. Sd/-Assistant Registrar(CS-III) Sl To Assistant Commissioner of Income Tax Corporate Circle - 4(2) Room No. 4334th Floor Main Building Ayakar Bhavan 121 MG Road Nungambakkam Chennai – 600034. https://hcservices.ecourts.gov.in/hcservices/ +1cc to Mr.Arun Karthik Mohan, Advocate SR.28956 W.P. No.34483 of 2019and WMP.No.35186 of 2019 CA(CO) CB(02/11/2020)