The order is been quashed by the Madras High Court as the chance of hearing was denied due to the failure of the taxpayer to tap on the pertinent button.
The personal hearing is required to be extended but the taxpayer may lose to tap on the pertinent button, a bench of Justice Mohammed Shaffiq has witnessed. During quashing the order the bench was asked to pass the order post providing the taxpayer a reasonable chance and personal hearing via a video conference.
The applicant contested the assessment order for the AY 2018–2019 on the foundation that, even after a request for a personal hearing incurred via the applicant and expressing his hardship to claim himself of the chance of a personal hearing via video conference, a personal hearing was not permitted, on the premise that the applicant does not tap on the Assessee Request Button/Icon and also not filled up the “Box of Agenda of the VC“.
The applicant argued that the SCN was furnished asking the applicant to Show cause the reason for the assessment must not be finished under the draft assessment order through the notice on 17th May 2021. The applicant answered it including the pertinent data along with the documents dated May 22, 2021, which the respondent considered duly. The applicant on the exact day incurs a request for a virtual hearing via NaFac.
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The petitioner on June 9, 2021, was asked to make an application for a hearing via video conference within seven days of receiving the said communication. The applicant through the letter on 10th June 2021 replied that there was a certain issue with the web portal and was not able to apply online, however, he tried to log in to apply for the personal hearing via video conference.
The letter was addressed to the Additional, Joint, Deputy, or Assistant Commissioner of Income Tax, National e-Assessment Centre, Delhi, who is the signatory to the letter, directing the petitioners to make a request for a virtual hearing.
On July 28, 2021, the respondent department, asked the petitioner to urge to apply via NaFAC for a virtual hearing. On July 28, 2021, the applicant, once again repeated his request for a personal hearing via video conference.
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As per the council, the applicant did not tap on the assessee’s request and indeed did not fill up the box of agenda of the VC and that was the cause why the personal hearing via video conference was not extended.
Hence the council asked that the applicant once again tap on the assessee’s request and ask for a personal hearing, failing which the same shall be deemed that the video conference was not needed.
On September 6, 2021, the applicant wrote a letter again before the respondent showing that even after trying to log in to apply for a personal hearing, they were not able to apply online.
The department through the email said that the applicant may submit the replies via the e-filing portal as per the Faceless Assessment and Penalty Scheme so that the response reaches the Faceless Assessing and Penalty Officer.
Via email, the applicant mentioned that no option is there for the “Box of Agenda of VC.” The order of assessment was made on the exact day.
The applicant mentioned that the only failure on the petitioner’s end to click on the request button does not by itself demonstrate that a personal hearing is not mandated, also when the petitioner has shown difficulty in requesting a personal hearing via a web portal.
The court said that the assessment order be passed post providing a chance to the applicant and a personal hearing through video conference within 12 weeks.
| Case Title | M/s.Bay-Forge Private Limited Vs Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer |
| Citation | W.P.No.24422 of 2021 |
| Date | 07.03.2024 |
| Petitioner | Mr R. Sivaraman |
| Counsel For Respondent | Mr. D. Prabhu Mukunth |
| Madras High Court | Read Order |
