Process Sensing Technologies PST Private Limited Vs Assessment Unit (Faceless) (Madras High Court)
Summary: The Madras High Court considered a writ petition filed by Process Sensing Technologies PST Private Limited challenging an assessment order dated 16.03.2026 for Assessment Year 2024-25. The assessment order was issued by the Assessment Unit (Faceless), Income Tax Department, under Section 143(3) read with Section 144B of the Income Tax Act, 1961.
The petitioner challenged the assessment order on the ground that a personal hearing through video conference had not been provided despite a specific request for such hearing.
Referring to its reply dated 09.02.2026 to the show cause notice, learned counsel for the petitioner submitted that the petitioner had expressly requested a personal hearing through video conference in the said reply. Despite this request, the assessment order was issued without providing the requested video-conference hearing.
The learned Standing Counsel for the Income Tax Department responded that the show cause notice had indicated that the petitioner should request a video-conference hearing by clicking the “seek video conference” button available against the show cause notice.
The High Court considered the statutory requirement under Section 144B of the Income Tax Act. The Court held that when a request for personal hearing is received, the relevant faceless unit is required to provide a personal hearing through video conference.
The Court noted that the impugned assessment order itself recorded that the petitioner’s reply to the show cause notice had been received. The Court further noted that the said reply contained an express request for a video-conference hearing.
On that factual basis, the Court held that the petitioner’s statutory right could not be denied merely because the request had not been made by clicking the “seek video conferencing” button.
Consequently, the High Court set aside the impugned assessment order and remanded the matter for reconsideration from the video-conferencing stage. The Court directed that, after providing a hearing through video conferencing, a fresh assessment order should be issued within four months from the date of receipt of a copy of the High Court’s order.
The writ petition was accordingly disposed of on these terms. There was no order as to costs, and the connected writ miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Assessment order dated 16.03.2026 is impugned on the ground that a personal hearing by video conference was not provided in spite of a specific request for the same.
2. Adverting to reply dated 09.02.2026 to the show cause notice, learned counsel for the petitioner submits that a personal hearing through video conference was expressly requested for therein. In spite of such request, learned counsel submits that the impugned assessment order was issued without providing such video conference hearing.
3. Responding to this contention, learned standing counsel for the Income Tax Department points out that the show cause notice indicated that the petitioner should make a request for a video conference hearing only by clicking the seek video conference button available against the show cause notice.
4. Under Section 144B of the Income Tax Act, when a request for personal hearing is received, the relevant faceless unit is required to provide a personal hearing through video conference. The impugned assessment order records that the petitioner’s reply to the show cause notice was received. Said reply makes an express request for the video conference hearing. Merely because such request was not made by clicking on the seek video conferencing button, the petitioner’s statutory right cannot be denied. Therefore, the impugned assessment order is set aside and the matter is remanded for re-consideration from the video conferencing stage. Consequently, after providing a hearing through video conferencing, a fresh assessment order shall be issued within four months from the date of receipt of a copy of this order.
5. Therefore, this writ petition is disposed of on the above terms. There shall be no order as to costs. Consequently, the connected writ miscellaneous petitions are closed.
