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TMI Blog2023 (1) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment unit who has prepared the draft after providing opportunity to the assessee by serving a notice upon him to show cause as to why the assessment should not be completed as per such draft or final draft or revised draft assessment order. Therefore, such personal hearing in era of Faceless assessment is to be provided through video conferencing. It is not in dispute that in facts of the case no draft assessment along with show cause notice as required u/s 144B(1) and section 144B(7) is given to the petitioner so as to enable the petitioner to give explanation for proposed addition during the hearing before the National Faceless Assessment Centre. Section 144B(1)(xii) provides that on receipt of show cause notice, assessee may furnish his response to the National Faceless Assessment Centre and as per clause (xiv), Assessment unit shall make a revised draft assessment order after considering the response of the assessee and send it to the National Faceless Assessment Centre. As per the provisions of section 144B(7) in case of variation prejudicial to the assessee as proposed in the draft assessment order, the assessee is entitled to request for personal hearing and up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 16.06.2022. 4. Brief facts of the case are as under :- 4.1 The petitioner, a cooperative credit society, registered under Gujarat Co-operative Society Act engaged in business of providing credit facilities to its members, filed its return of income for AY 2018-19 on 23.09.2018 offering Nil income after claiming deduction of Rs.2,79,77,018/- under 80P of the Income Tax Act, 1961 (hereinafter referred to as 'the Act, 1961'). 4.2 The case of the petitioner was selected for scrutiny under CASS to verify some issues and for the said purpose, Show Cause Notice was issued on 05.04.2021 by the respondent producing draft assessment order therein. 4.3 The petitioner vide letter dated 10.04.2021 responded to the above notice and sought personal hearing through video conference and also requested for directions u/s 144A to be issued by the Range Head to the AO. 4.4 The Video Conference for personal hearing was scheduled on 26.04.2021 at 11:30 AM. He had difficulty for appearing and therefore he requested to adjourn the video conference to 23.04.2021. However, the petitioner received no response to such request. Thereafter, such video conference was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 144B of the Act, 1961. It was submitted that as per the Scheme of Faceless Assessment as provided under section 144B of the Act, 1961, draft assessment order is to be provided to the assessee for the proposed addition so as to give an opportunity of hearing. It was submitted that the respondent authority has not provided the opportunity of hearing through video conference as envisaged under section 144B (7) (vii), (viii) and (ix) of the Act, 1961 and therefore, the impugned order is in violation of the principles of natural justice. 6. In support of his submissions, Mr.Soparkar has relied upon the decision of Bombay High Court in the case of Golden Tobacco Limited v. NFAC and others, rendered in Writ Petition No.1282 of 2021 dated 28.10.2021, Mantra Industries Limited v. National Faceless Assessment Centre (NFAC or NeAC) reported in [2021] 131 TAXMANN.COM 165 (Bombay), decision of this Court in the case of Gandhi Realty (India) Private Limited v. Asst/Jt./Dy./ACIT/ITO rendered in Special Civil Application No.7662 of 2021 dated 5.10.2021 and decision of this Court in the case of Index India Private Limited v. Addl./Jt./Dy./ACIT/ITO rendered in Special Civil A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings, if any, to the assessee, along with the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; or (b) provide an opportunity to the assessee, in case any variation prejudicial to the interest of assessee is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made; or (c) assign the draft assessment order to a review unit in any one Regional Faceless Assessment Centre, through an automated allocation system, for conducting review of such order; xxx (xxii) the assessee may, in a case where show-cause notice has been served upon him as per the procedure laid down in sub-clause (b) of clause (xvi), furnish his response to the National Faceless Assessment Centre on or before the date and time specified in the notice or within the extended time, if any; xxx 144B(7) For the purposes of faceless assessment xxx (vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment order, and an opportunity is provided to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 144B(1) and section 144B(7) is given to the petitioner so as to enable the petitioner to give explanation for proposed addition during the hearing before the National Faceless Assessment Centre. Section 144B(1)(xii) provides that on receipt of show cause notice, assessee may furnish his response to the National Faceless Assessment Centre and as per clause (xiv), assessment unit shall make a revised draft assessment order after considering the response of the assessee and send it to the National Faceless Assessment Centre. As per the provisions of section 144B(7) in case of variation prejudicial 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. 12. In view of above, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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