2024 (7) TMI 658 - HC - Income Tax

Faceless Assessment Unit responsibility of offering personal hearing - Validity of order passed u/s 143 (3) r.w.s. 144B w/o affording the opportunity of personal hearing through video conferencing or video telephony, despite making a request, in terms of Section 144B (6) (viii) - HELD THAT - Admittedly, in this case, the petitioner had applied for an opportunity of personal hearing. The petitioner s request was also approved by the Faceless Assessment Unit as would corroborate from the screen shot of the online portal. The screen shot, however, does not disclose that any video conferencing link had been shared, for the petitioner to log in and join the link, the same only records that the V.C. Link and password will be displayed two hours prior to schedule time for V.C . The petitioner claims that it did not receive the V.C. Link. Although, the petitioner had made a contemporaneous complaint, prior to such complaint being resolved, the assessment order had been passed. Today at the time of hearing of this petition Mr. Dutt, by placing before this Court a notice dated 28th March, 2024 has attempted to claim that video conferencing link was shared with the petitioner. The said document, however, is not visible on the petitioner s view of the portal. No automated SMS alerts/email alerts were also trigged. Thus, mere creation of video conferencing meeting ID/Link, does not absolve the Faceless Assessment Unit from discharging its responsibility of offering personal hearing. The meeting ID/Link is required to be disclosed/shared , for the petitioner to log in to the said ID/Link, for ensuring compliance of the statutory provision of personal hearing as provided for in Section 144B (6) (viii) of the said Act. The Faceless Assessment Unit cannot claim to absolve of its responsibility by mere creation of a meeting ID/Link, without having the same shared to the petitioner. The finding by the Faceless Assessment Unit in the order dated 29th March, 2024 that the petitioner chose not to attend the Video Conference thus, appears to be perverse and is based on no evidence. Since the determination made by the Faceless Assessment Unit stands vitiated from the stage of not affording the petitioner an opportunity of personal hearing, the order dated 29th March, 2024 cannot be sustained and the same is accordingly set aside. The matter remanded back to the Faceless Assessment Unit with directions.

Summary

Issues:
Challenge to order under Income Tax Act for Assessment Year 2022-23 regarding personal hearing through video conferencing.

Analysis:
The petitioner challenged an order issued under the Income Tax Act, 1961, for the Assessment Year 2022-23, which was issued under Section 143(3) of the Act along with Section 144B. The main issue was whether the petitioner was given the opportunity of personal hearing through video conferencing as requested under Section 144B(6)(viii) of the Act.

The petitioner claimed that despite requesting a personal hearing and the respondents approving it, they were unable to attend as the communication did not provide a video conferencing link. The court directed the respondents to investigate the matter further. The respondents submitted an intimation notice stating that the petitioner was notified of the video conferencing link, but the petitioner did not log in, resulting in no personal hearing. The court examined a printout from the petitioner's account showing that the notice was not visible on the portal, contradicting the respondent's claim.

The court noted that under Section 144B(6)(viii) of the Act, when a variation is proposed in income or loss, the assessee must be given an opportunity for personal hearing upon request. The court found that the petitioner's request was approved, but no video conferencing link was shared, as required by the statute. Mere creation of a meeting ID/link by the Faceless Assessment Unit does not fulfill the obligation of offering a personal hearing. The court deemed the assessment order invalid due to the lack of a personal hearing opportunity.

Consequently, the court set aside the order dated 29th March, 2024, and remanded the matter to the Faceless Assessment Unit for providing the petitioner with a video conferencing link for a personal hearing. The Unit was directed to decide the matter afresh within 8 weeks from the date of the court's order. The court clarified that it did not delve into the assessment's merits and allowed the Unit to pass an appropriate order independently. The notice issued under Section 156 of the Act for the Assessment Year 2022-23 was also set aside. The writ petition was disposed of with specific directions for compliance.