2022 (5) TMI 449 - HC - Income Tax

Court sets aside ex-parte order under Income Tax Act for violation of natural justice.

Ankit Kaul Versus National Faceless Assessment Center, New Delhi

The court set aside the ex-parte order under the Income Tax Act due to a technical glitch preventing the petitioner from submitting a response, deeming it ... Validity of National faceless orders - ex-parte orders - Violation of principles of natural justice - Petitioner states that the Respondent on 29th March, 2022 passed the impugned order under Section 147 read with Sections 144 and 144B of the Act without taking the written submission of the Petitioner on record - HELD THAT:- It is settled law that a writ petition is maintainable if the principles of natural justice have been violated. In the present instance, since, the petitioner, due to technical glitch, has not been able to file his response/written submission, the impugned order dated 29th March, 2022 is set aside. However, the Respondent is directed to re-file its reply dated 24th March, 2022 with the National Faceless Appeal Centre [NFAC] within a week. The Respondent is directed to pass a fresh assessment order within six weeks thereafter in accordance with law. Issues: Challenge to ex-parte order under Income Tax Act due to technical glitch preventing submission of response.Analysis:The petitioner filed a writ petition challenging an ex-parte order dated 29th March, 2022 passed under Section 147 read with Section 144 of the Income Tax Act, 1961. The petitioner's counsel argued that the respondent passed the order without considering the petitioner's written submission, which was not possible due to a technical issue with the E-filing Portal under the National Faceless Assessment Scheme. Despite the petitioner sending necessary details and documents via email on 24th March, 2022, the respondent did not take it on record and instead asked the petitioner to raise the grievance through another email. The petitioner complied and raised the issue promptly. However, the respondent proceeded with the ex-parte order despite indicating that the matter was under review.The court acknowledged that the petitioner's inability to file a response due to a technical glitch amounted to a violation of the principles of natural justice. Consequently, the impugned order dated 29th March, 2022 was set aside. The respondent was directed to re-file its reply with the National Faceless Appeal Centre within a week and to pass a fresh assessment order within six weeks in compliance with the law. The writ petition and related applications were disposed of with these directions, ensuring fairness and adherence to due process in the assessment proceedings.