Tvl. Diamond Shipping Agencies PVT. LTD vs. The Assistant Commissioner (St)
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The petitioner, Tvl.Diamond Shipping Agencies Private Limited, filed a writ petition challenging an order passed by the Assistant Commissioner (ST), Tuticorin-II Assessment Circle. The impugned order, dated 17.08.2022, pertains to the tax period 2017-18. The petitioner contended that the assessment order was passed in gross violation of the principles of natural justice and statutory provisions. Specifically, the petitioner argued that the respondent failed to consider annual returns (GSTR-9) and auditor's statements (GSTR-9C) filed for three business verticals operating under the same PAN. Furthermore, the petitioner claimed that the impugned order was passed without proper service of physical notice, contravening Section 169(1)(b) of the Act. The petitioner sought to quash the order and requested a fresh assessment with an opportunity for a personal hearing.
Held
The Court held that the impugned order dated 17.08.2022 was passed in violation of the principles of natural justice and statutory provisions. The Court found merit in the petitioner's contention that the order was passed without proper service of notice as per Section 169(1)(b) of the Act. Additionally, the Court noted that the respondent failed to take into account that the petitioner operates three business verticals under the same PAN. Consequently, the Court quashed the impugned order. The respondent was directed to grant the petitioner an opportunity, preferably a personal hearing, to present their case. The petitioner was instructed to produce all relevant evidence and documents. The respondent was further directed to complete the assessment proceedings within eight weeks from the date of receiving a copy of the order. The ratio decidendi is that an assessment order passed without adhering to principles of natural justice and statutory notice requirements, and without considering all relevant filings of the assessee, is unsustainable and liable to be set aside.
Key Issues
1. Whether the impugned order dated 17.08.2022, passed by the respondent for the tax period 2017-18, is liable to be quashed for gross violation of the principles of natural justice and statutory provisions, specifically Section 169(1)(b) of the Act? Petitioner's arguments: The petitioner argued that the assessment order was passed without providing an opportunity for a personal hearing, thereby violating the principles of natural justice. They further contended that the respondent failed to consider the annual returns (GSTR-9) and auditor's statements (GSTR-9C) filed for their three business verticals operating under the same PAN. Crucially, the petitioner asserted that the impugned order was passed without proper physical service of notice, which is a violation of Section 169(1)(b) of the Act. The petitioner sought a fresh assessment after being granted an opportunity for a personal hearing. Respondent's arguments: The judgment does not record any specific arguments made by the respondent.
Sections Cited
Section 169(1)(b)
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Before: and
This Writ Petition is filed to quash the impugned order dated 17.08.2022 for the assessment year 2017-2018. 2. The contention of the petitioner is that assessment order is passed by violative the principles of natural justice and consequently direct the respondent to re-do the assessment. The petitioner is having three business verticals of the same PAN, but the respondents have passed order without considering the annual returns in GSTR-9 and Auditor’s statement filed in GSTR-9C for the said three business verticals. Therefore, the petitioner claims that if an opportunity is granted, he would explain the same to the authorities. Since the same is not granted, the petitioner is before this Court. Moreover, the respondent without serving physical notice / order the impugned order is passed which is against the Section 169(1)(b) of the Act. 2/4 https://www.mhc.tn.gov.in/judis
This Court is of the considered opinion that the impugned order is passed without serving notice as per section 169(1)(b) and without taking into account that the petitioner is having three business verticals. Therefore, this Court is inclined to quash the impugned order. Hence, the impugned order is quashed. The respondent is directed to grant opportunity to the petitioner, preferably grant personal hearing and thereafter pass orders. The petitioner shall produce all the evidences and documents before the respondent. The respondent is directed to complete the assessment proceedings within a period of eight (8) weeks from the date of receipt of a copy of this order.
In view of the above, this Writ Petition is allowed. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed. 29.08.2023
NCC : Yes/No Index : Yes / No Internet : Yes/ No Nsr 3/4 https://www.mhc.tn.gov.in/judis S.SRIMATHY, J.
Nsr To The Assistant Commissioner (ST), Tuticorin-II Assessment Circle, Tuticorin.
2023
4/4 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.