Principles of natural justice not violated as AO provided several opportunities

AA 282, Kolappalur Primary Agricultural Coop Credit Society Limited Vs National Faceless Assessment Centre (Madras High Court)

Admittedly, as seen from the impugned assessment order several opportunities were given to the petitioner to respond to the notices sent by the respondents under Section 143 (2) as well as under Section 142 (1) of the Income Tax Act.

The petitioner also admits that the final show cause notice dated 09.08.2022 was also received by them. But, however, contends that even though they sought fifteen days time to submit a reply, within a period of three days, the impugned assessment order has been passed. In the impugned assessment order, it is observed that the petitioner acknowledged the show cause notice dated 09.08.2022 on 17.09.2022 and requested fifteen days time to furnish the details / documents. The respondents have also given reasons as to why further time cannot be granted as they observed that the cases were getting time barred on 30.09.2022 and therefore, the petitioner’s request for grant of time to furnish details cannot be considered by the respondents.

This Court does not find any infirmity in the reasons given by the respondents for rejecting the petitioner’s request for grant of further time to submit a reply and to furnish copies of the details / documents. Taking note of the fact that the petitioner has been provided with sufficient opportunities to respond to the notices sent by the respondents, as seen from the tabular column referred to supra, no further time can be granted to the petitioner to submit a reply as rightly held by the respondents under the impugned assessment order.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

The petitioner has challenged the best judgment assessment order dated 20.09.2022 for the assessment year 2020-21 on the ground that they have not received the draft assessment order and principles of natural justice has been violated.

Admittedly, as seen from the impugned assessment order several opportunities were given to the petitioner to respond to the notices sent by the respondents under Section 143 (2) as well as under Section 142 (1) of the Income Tax Act. The details of the notices sent to the petitioner by the respondent which were not responded to by the petitioner are as follows:

3. The petitioner also admits that the final show cause notice dated 09.08.2022 was also received by them. But, however, contends that even though they sought fifteen days time to submit a reply, within a period of three days, the impugned assessment order has been passed. In the impugned assessment order, it is observed that the petitioner acknowledged the show cause notice dated 09.08.2022 on 17.09.2022 and requested fifteen days time to furnish the details / documents. The respondents have also given reasons as to why further time cannot be granted as they observed that the cases were getting time barred on 30.09.2022 and therefore, the petitioner’s request for grant of time to furnish details cannot be considered by the respondents.

4. This Court does not find any infirmity in the reasons given by the respondents for rejecting the petitioner’s request for grant of further time to submit a reply and to furnish copies of the details / documents. Taking note of the fact that the petitioner has been provided with sufficient opportunities to respond to the notices sent by the respondents, as seen from the tabular column referred to supra, no further time can be granted to the petitioner to submit a reply as rightly held by the respondents under the impugned assessment order.

5. The petitioner has expressed financial difficulties in paying the pre-deposit amount. Learned counsel for the petitioner seeks sufficient time for the petitioner to mobilize the funds to enable the petitioner to file a Statutory Appeal as against the impugned assessment order. Being an assessment order, this Court deems it fit to grant time to the petitioner to file a Statutory Appeal as against the impugned assessment order.

6. The petitioner has not made out any case for interference by this Court under Article 226 of the Constitution of India as the principles of natural justice has not been violated by the respondents. This Court deems it fit to grant four weeks time for the petitioner to file the Statutory Appeal as against the impugned order before the Statutory Appellate Authority.

7. For the foregoing reasons, this Writ Petition is disposed of by directing the petitioner to file the Statutory Appeal as against the impugned assessment order dated 20.09.2022 before the Statutory Appellate Authority within a period of four weeks from the date of receipt of a copy of this order. On receipt of the said Appeal, within the stipulated time, the Statutory Appellate Authority shall entertain the same and decide the matter on merits and in accordance with law without reference to the limitation.

8. With the aforementioned directions, this Writ Petition is disposed of. No Costs. Consequently, the connected Writ Miscellaneous Petition is closed.