Case Law Details
Sitaram Shyam Sundar Fashions Private Limited & Anr. Vs Union of India & Ors. (Calcutta High Court)
In the case of Sitaram Shyam Sundar Fashions Private Limited & Anr. vs. Union of India & Ors., the Calcutta High Court addressed grievances against an assessment order issued under Section 143(3) of the Income Tax Act, 1961, coupled with Section 144B, by the Faceless Assessment Unit (FAU). The petitioners contested the validity of the assessment process, primarily arguing violations of procedural fairness and statutory provisions.
The case originated from a scrutiny proceeding initiated with a show cause notice on March 4, 2024, detailing proposed variations for the Assessment Year 2022-23. Responding promptly on March 9, 2024, the petitioner requested a personal hearing, which was scheduled for March 16, 2024, via video conferencing. However, on March 13, 2024, an additional show cause notice was issued, demanding responses by March 15, 2024, before the scheduled hearing took place. The petitioners contended that issuing the additional notice before the originally scheduled hearing violated procedural norms, referencing a similar precedent from a previous Calcutta High Court case.
During the hearing, the petitioner’s counsel argued that despite the petitioner’s attempts to join the scheduled video conferencing session, no representatives from the Faceless Assessment Unit appeared, thus denying them the opportunity for a personal hearing. The FAU’s subsequent assessment order, dated March 21, 2024, claimed the petitioner failed to attend the scheduled video hearing, which the petitioner’s counsel disputed as inaccurate.
In response, the respondents, represented by their counsel, emphasized that the issuance of an additional show cause notice was within the assessing authority’s discretion and that the petitioner had recourse to appeal, challenging the High Court’s jurisdiction to intervene directly.
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