No benefit of violation of principles of natural justice if assessee repeatedly failed to respond to various notices: HC

Case Details: Chams Branding Solutions India (P.) Ltd v. DCIT - [2022] 134 taxmann.com 36 (Kerala)

Judiciary and Counsel Details

• • Bechu Kurian Thomas, J.
  • Misbah Salam, Managing Director, Anil D. Nair, R. Sreejith, Smt. Telma Raju, Sangeeth Joseph Jacob and Smt. Christina Anna Paul, Advs. for the Petitioner. 
  • Jose Joseph, SC for the Respondent.

Facts of the Case

Assessee has received notice under section 142(1) on 24-12-2019, pursuant to which the assessee filed a detailed reply. The assessee claimed that no other notices were issued to it other than the notice mentioned above dated 24-12-2019.

Later, by order dated 15-3-2021, assessee was served with demand, based on an assessment alleged to have been carried out under section 143(3). The assessee filed the writ petition before the High Court alleged that the assessment order is bad in law. No notices other than the one under section 142(1) was ever served upon it, and hence there was a clear violation of the principles of natural justice.

The Assessing Officer submitted that assessee was given several opportunities to submit the details, including the notices on 28-9-2019, 24-12-2019, 4-3-2020, 28-7-2020, 17-12-2020 and 18-2-2021. However, on all the above-referred occasions, assessee failed to submit any details.

High Court Held

The Kerala High Court held that the assessment order under challenge was issued after granting sufficient opportunity to the assessee, including various notices issued under sections 143 and 142. The assessee had not replied to any of those notices. Therefore, the assessee cannot turn around and contend that it was not granted an opportunity or there was any violation of the principles of natural justice.

Though the last notice issued to the assessee was on 12-3-2021, requiring it to reply within one day may not appear reasonable. But considering the background of the case and the repeated failure of the assessee to respond to prior notices, it cannot be said that there was a violation of principles of natural justice.

Violation of principles of natural justice has to be viewed with reference to facts of each case also. A person who had not responded to any notices issued in the past cannot complain that he was not granted reasonable time to respond in the last notice issued.

List of Cases Referred to

• • Asstt. Commr. of State Tax v. Commercial Steel Ltd. [2021] 130 taxmann.com 180 (SC) (para 12).