Shiva Texyarn Ltd. Vs Assessment Unit Income-tax Department (Madras High Court)
Madras High Court has set aside a faceless assessment order issued by the Income-tax Department against Shiva Texyarn Ltd. for the assessment year 2023-24. The court ruled that the order, dated March 13, 2025, was passed in violation of natural justice principles, as the company was denied a granted opportunity for a personal hearing via video conferencing.
Shiva Texyarn Ltd., a company engaged in textile and garment manufacturing and electricity production, filed a writ petition challenging the assessment order. Dr. B. Ramaswamy, learned Senior Standing Counsel, represented the respondents, and by consent of both parties, the writ petition was taken up for final disposal at the admission stage.
The petitioner’s counsel informed the court that the company had duly filed its tax returns for the relevant period. However, during the scrutiny of these returns, certain discrepancies were noted. Consequently, a show cause notice was issued on November 28, 2024, directing the company to file a reply through its registered e-filing account by December 4, 2024.
Shiva Texyarn Ltd. submitted its reply on December 4, 2024, and simultaneously requested a personal hearing through video conferencing via the Income Tax Portal. Following this request, the first respondent issued an intimation on December 9, 2024, scheduling a video conference hearing for December 30, 2024, at 2:39 p.m.
