Court allows late tax appeal after delay in providing demand notice and computation sheet.

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Case Name

Hindustan Ore and Mining Pvt. Ltd., Keonjhar vs. The Assessment Unit of National Faceless Assessment Centre, New Delhi and others, (High Court of Orissa)

W.P.(C) No.742 of 2025

Date: 18th February 2025

Key Takeaways

• Delay in providing tax documents: The Income Tax Department failed to provide the computation sheet and demand notice promptly, which are necessary for filing an appeal.
• Right to appeal protected: The court recognized that the petitioner was prevented from appealing due to this delay and provided a remedy.
• Condonation of delay: The court allowed the petitioner to file an appeal even after the usual deadline, provided they submit the required documents by 7th March 2025.
• Section 143(3) (of Income Tax Act, 1961)/263/143(3) and Section 226(3) (of Income Tax Act, 1961): These sections were central to the assessment and subsequent actions by the tax authorities.

Issue

Did the delay by the Income Tax Department in providing the computation sheet and demand notice unjustly prevent the petitioner from filing a timely appeal, and should the delay in filing the appeal be condoned?

Facts

• Parties:
• Petitioner: Hindustan Ore and Mining Pvt. Ltd., Keonjhar
• Opposite Parties: The Assessment Unit of National Faceless Assessment Centre, New Delhi, and others
• Timeline:
• Assessment order dated 29th July 2021 for the assessment year 2015-16 was issued under Sections 143(3) (of Income Tax Act, 1961)/263/143(3) of the Income Tax Act, 1961.
• The order mentioned a computation sheet and tax demand, but these were not attached on the portal.
• The petitioner requested these documents via the portal but received no response.
• On 25th January 2024, the department issued an attachment notice under Section 226(3) (of Income Tax Act, 1961).
• The petitioner argued that the absence of the computation sheet and demand notice prevented them from filing an appeal.
• Court Proceedings:
• The petitioner sought the court’s intervention to obtain the necessary documents and to allow a delayed appeal.
• The department eventually provided the demand and calculation on 18th February 2025.

Arguments

Petitioner (Hindustan Ore and Mining Pvt. Ltd.):

• The assessment order referenced a computation sheet and demand notice, but these were not provided.
• The lack of these documents made it impossible to file an appeal.
• The petitioner made repeated requests for the documents but received no response until an attachment notice was issued much later.
• Requested the court to direct the department to provide the documents and to allow a delayed appeal.

Opposite Parties (Income Tax Department):

• The department, through its counsel, eventually provided the demand and calculation.
• Argued that the petitioner now has the necessary documents and can pursue the statutory remedy of appeal.

Key Legal Precedents & Statutory References

• Section 143(3) (of Income Tax Act, 1961)/263/143(3) of the Income Tax Act, 1961:
• These sections relate to the assessment and reassessment procedures under the Income Tax Act.
• Section 226(3) (of Income Tax Act, 1961):
• This section deals with the attachment of a taxpayer’s assets for recovery of tax dues.
• No specific case law names are cited in the judgment.
• The judgment primarily references statutory provisions and procedural fairness.

Judgement

• The court acknowledged that the petitioner was prevented from filing an appeal due to the department’s delay in providing the computation sheet and demand notice.
• The court ordered that if the petitioner files an appeal by 7th March 2025, along with an application for condonation of delay and a certified copy of this order, the appellate authority should consider excluding the time lost due to the department’s delay and admit the appeal.
• The writ petition was disposed of with these directions.

FAQs

Q1: Why couldn’t the petitioner file an appeal earlier?

A: The petitioner did not receive the computation sheet and demand notice, which are necessary to file an appeal, despite repeated requests.

Q2: What did the court do to help the petitioner?

A: The court allowed the petitioner to file an appeal by 7th March 2025 and directed the appellate authority to consider the delay as justified due to the department’s inaction.

Q3: What sections of the Income Tax Act were involved?

A: The assessment was under Sections 143(3) (of Income Tax Act, 1961)/263/143(3), and the attachment notice was issued under Section 226(3) (of Income Tax Act, 1961).

Q4: Does this mean the petitioner won the case?

A: The petitioner got the relief they sought—the right to file a delayed appeal—so in practical terms, yes.

Q5: What happens next?

A: The petitioner must file the appeal and application for condonation of delay by 7th March 2025, and the appellate authority will consider it as per the court’s directions.