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TMI Blog2022 (7) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... cial to the assessee as proposed in the draft assessment order, the assessee is entitled to request for personal hearing and upon such request, the personal hearing may be provided by the authority, if the case of the assessee is covered by circumstances provided therein in exercise of powers under sub-clause (h) of clause (xii) of section 144B(7) of the Act, 1961. It can be safely be said that the impugned order was passed by the respondent in violation of principles of natural justice without affording an opportunity of personal hearing by not following the prescribed procedure laid down as per the provisions of section 144B of the Act, 1961 for Faceless assessment. Petition allowed. The impugned order of assessment passed by the respondent under section 143(3) read with section 144B dated 08.06.2021 at Annexure-N and demand notice under section 156 of the even date at Annexure-O are quashed and set aside. - R/SPECIAL CIVIL APPLICATION NO. 9766 of 2021 - - - Dated:- 13-6-2022 - HONOURABLE MR. JUSTICE A.J. DESAI AND HONOURABLE MR. JUSTICE BHARGAV D. KARIA Appearance: Mr. Manish J Shah(1320) for the Petitioner(s) No. 1 Mr. Munjaal M. Bhatt For MR Bhatt Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice and submitted the explanations/details called for by the department. Thereafter, the petitioner received notice dated 10.1.2020 u/s. 142(1) from the respondent asking for certain details/ clarifications. The petitioner submitted its response vide reply dated 27.1.2020 and furnished the details / explanations called for. The petitioner also addressed yet another letter dated 13.2.2020 to respondent no.2 furnishing further details. 4.5 Meanwhile, the Income Tax Department introduced National Faceless Assessment Scheme from 13.8.2020 and accordingly, the assessment of the petitioner was transferred to National e-Assessment Centre, Delhi. Thereafter, the respondent No.1 issued a notice dated 27.11.2020 u/s.142 (1) asking the petitioner to provide the details of investment and expenditure incurred for earning income from investment. The petitioner submitted its response vide letter dated 11.12.2020. Respondent No.1 once again issued notice u/s.142 (1) dated 9.12.2020 asking the petitioner to submit further details, to which the petitioner responded to vide letter dated 23.12.2020. 4.6 Thereafter, show-cause notice dated 1.4.2021 was issued to the petitioner. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, would submit that the present petition be dismissed. 8. We have heard learned advocates appearing for the respective parties and perused the impugned order as well as gone through relevant provisions of law. In order to adjudicate the issue involved with regard to providing opportunity of hearing, it would be germane to refer to the relevant provisions of section 144B of the Act, 1961 which reads as under : 144B. (1) Notwithstanding anything to the contrary contained in any other provisions of this Act, the assessment under subsection (3) of section 143 or under section 144, in the cases referred to in sub-section (2), shall be made in a faceless manner as per the following procedure, namely:- xxx (xiv) the assessment unit shall, after-taking into account all the relevant material available on the record make in writing, a draft assessment order or, in a case where intimation referred to in clause (xiii) is received from the National Faceless Assessment Centre, make in writing, a draft assessment order to the best of its judgment, either accepting the income or sum payable by, or sum refundable to, the assessee as per his return or making variation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is set up, may approve the request for personal hearing referred to in clause (vii) if he is of the opinion that the request is covered by the circumstances referred to in sub-clause (h) of clause (xii); (ix) where the request for personal hearing has been approved by the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, such hearing shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board; 9. Section 144B of the Act, 1961 provides detailed procedure for Faceless Assessment introduced by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 with effect from 1st April, 2021. Section 144B (1) starts with a non-obstante clause i.e. notwithstanding anything to the contrary contained in any other provisions of this Act, the assessment under sub-section (3) of section 143 or under section 144, in the cases referred to in sub-section (2), shall be made in a faceless manner... as per the procedure prescribed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality (India) Private Limited v. Assistant/Joint/Deputy/Assistant Commissioner of Income tax/Income Tax Officer (Order dated 05.10.2021 in Special Civil Application No.7662/2021) 4) Idex India Private Limited v. Additional/Joint/Deputy/Assistant Commissioner of Income Tax/Income Tax Officer (order dated 14.12.2021 in Special Civil Application No. 16690/2021). 13. In the result, this petition succeeds and is accordingly allowed. The impugned order of assessment passed by the respondent under section 143(3) read with section 144B dated 08.06.2021 at Annexure-N and demand notice under section 156 of the even date at Annexure-O are quashed and set aside. The respondent/Revenue will be at liberty to proceed with assessment under the provisions of section 144B of the Act, 1961 as permissible under the law after issuance of show cause notice-cum-draft assessment order so as to provide an opportunity of hearing to the petitioner. The petitioner shall be given an opportunity of hearing as per the provisions of section 144B of the Act, 1961. Such exercise shall be completed within 12 weeks from the date of receipt of copy of this order. Rule is made absolute to the aforesaid e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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