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TMI Blog2021 (9) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... granted personal hearing nor stated in the assessment order why the personal hearing was not granted. On this ground alone, in our view, the assessment order dated 2nd March, 2021 requires to be set aside. Non furnishing of draft assessment order , in the assessment order it is stated a show cause notice has been issued on 18/01/2021 for compliance on 22/01/2021 and again a final show cause notice with draft assessment order has been issued on 01/02/2021 for compliance on 05/02/2021. In response, the assessee has submitted the submission which has been perused . Though in the assessment order it is stated that draft assessment order was provided with show cause notice dated 1st February, 2021, from the affidavit in reply it appears th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 143 (2) of the Income Tax Act, 1961 (the Act) initiating scrutiny assessment. Petitioner responded to the same. 2. We can fast forward to January, 2021. Petitioner received a notice dated 18th January, 2021 calling upon to show cause as to why the assessment should not be completed as per the draft assessment order. Paragraph 2 of the notice reads as under : 2. A draft assessment order proposing to modify your returned income and/or sum payable is reproduced as under:- From the perusal of the reply dt. 28/12/2020, the following findings have come out which as below: 1. In response of question Reasons for showing low income in comparison to TCS receipts , you have submitted that Now a days market is buyer market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal receipt. In paragraph 2 it is stated --------------- In this respect, you are requested to please submit the source of income alongwith business activities, copy of ITR, P L and Balance Sheet and copy of Bank Statements -----------. Petitioner was called upon to submit his response by 23:59 hours of 22nd January, 2021 and also advised to specifically state whether a personal hearing was required. 4. Petitioner fled a reply on 26th January, 2021 stating that petitioner s Tax Consultant had undergone Prostate Surgery and that he has appointed another Chartered Accountant and sought time. Petitioner also stated that a personal hearing is required to be granted. This was followed by another reply dated 27th January, 2021 whereby pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Petitioner responded to this notice dated 1st February, 2021 by his reply dated 5th February, 2021. Thereafter, assessment order dated 2nd March, 2021 has been passed which is impugned in this Petition. According to petitioner, this assessment order has been passed in breach of the provisions of the Faceless Assessment Scheme, 2019 that was introduced by way of Notification No. 60/2020 dated 13th August, 2020 in as much as petitioner s request for personal hearing has been ignored and mandatory draft assessment order has not been issued to petitioner. 7. On the question of issue of non granting of personal hearing, the notices dated 18th January, 2021 and 1st February, 2021 both provided that petitioner may seek personal hearing so as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Faceless Assessment Scheme, 2019 as per the circular dated 13th August, 2020, provides that where a modification is proposed, the National e-Assessment Centre shall provide an opportunity to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per draft assessment order. This has not been complied with. This is one more reason, in our view, for interfering. 11. We have to note that CBDT in its order dated 13th August, 2020 under Section 119 of the Act has ordered as under : 2. In order to ensure that all the assessment orders were passed through the Faceless Assessment Scheme, 2019, the Board in exercise of powers under section 119 of the Income-tax Act, 1961 here ..... X X X X Extracts X X X X X X X X Extracts X X X X
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