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TMI Blog2025 (2) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... sen to avail alternative remedy in respect of the assessment year 2013-14. If so advised, he may avail the remedy of appeal, subject, however, to the limitation. While considering any application for condonation of delay, the period spent by the petitioner before this Court in the present writ application shall be liable to be condoned. X X X X Extracts X X X X X X X X Extracts X X X X ..... notice alleged that deposit of a sum of Rs.1,76,33,412/- in the ICICI bank account of the petitioner. The notice proposed to add the whole of the deposits as undisclosed income. 7. Learned senior counsel for the petitioner submits that the notices were displayed on the portal of the department. The petitioner being illiterate person could not ever know of the exparte assessment order going against him initiated by the jurisdictional officer or the Faceless Assessment Centre. The respondent no.1 passed an ex-parte order of assessment dated 03.03.2022 for the assessment year 2014-15 under Section 144 and 144B of the Act and accordingly issued a notice of demand. 8. The core contention of learned senior counsel for the petitioner is that the statutory scheme of Section 144B of the Act of 1961 provides for the manner in which an assessment under Section 143(3) and Section 144 of the Act of 1961 is to be done. It is his submission that there are several sub-clauses under Section 144B, even in case of failure of an assessee to comply with the notice the 'NFAC' must examine the draft assessment order in accordance with the risk management strategy specified by the Board including by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as approval of Additional CIT was concerned, stood satisfied but this satisfaction arrived at by the Hon'ble Delhi High Court was in the light of the fact that the Additional CIT addressed a letter to the ITO in which he wrote that in view of the reasons recorded under Section 148(2) of the IT Act, approval for issue of notice under Section 148 is hereby given. In the case of Capital Broadways Pvt. Ltd. (supra), the Hon'ble Delhi High Court held that by mere repeating the words of the statute, mere rubber stamping of the letter seeking sanction or using similar words like "Yes, I am satisfied" will not satisfy the requirement of law. It is his submission that in the present case the procedures as prescribed under Section 151(1) for issuance of notice under Section 148 of the Act of 1961 has not been complied with. Submissions on behalf of the respondents 13. The writ application has been contested by the respondents. It is stated that as per report available in insight portal which was uploaded by the Assistant Director of Income Tax (Investigation) Muzaffarpur on 24.04.2020 the assessee had deposited cash of Rs.1,80,48,412/- in two bank accounts, namely Rs.55,81,967/- in A/c No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022. 16. Learned senior counsel has placed before this Court a copy of the order dated 12.09.2024 passed by this Court in the case of this very petitioner (CWJC No.3759 of 2020). It is submitted that the said writ application was filed challenging an identical order with respect to the assessment year 2013-14. The petitioner withdrew the said writ application with liberty to seek remedy before the appellate forum. This Court permitted the petitioner to withdraw the writ petition with liberty subject to just exceptions including that of limitation also. Therefore, in present case also the petitioner if so advised may seek the alternative remedy of appeal. 17. It is submitted that the impugned order of assessment has been passed after due compliances with the statutory provisions. In order to satisfy this Court, learned counsel has placed before this Court the following three judgments:- (1) (2003) 259 ITR 19 (SC) (GKN Driveshafts (India) Ltd. vs. Income Tax Officer & Ors. (2) CWJC No.3759 of 2020 (Venky Steels Pvt. Ltd. Vs. Commissioner of Income Tax-II. (3) CWJC No.3207 of 2022 (Abha Saraf Vs. Union of India & Ors.). 18. It is submitted that in the case of GKN Drivesha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oper to take a glance over the relevant provisions of the Act of 1961. Section 147 is attracted if any income chargeable to tax, in the case of an assessee has escaped assessment for any assessment year. According to this provision, the Assessing Officer subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year. Section 148 provides for issuance of notice where income has escaped assessment. According to this provision, before before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall , subject to the provisions of section 148A, issue a notice to the assessee, along with a copy of the order passed under sub-section (3) of Section 148A, requiring him to furnish, within such period as may be specificed in the notice, not excedding three months from the end of the month in which such notice is issued, a return of his income or income of any other person in respect of whom, he is assessable under this Act during the previous year corresponding to the relevant assessment year. Proviso to Section 148 state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2021 whereby the assessee was called upon to furnish on or before 19.08.2021 the account and documents specified overleaf. Annexure to the notice states that assessee should explain the nature and source of income and he should furnish bank statement for the financial year 2013-14 of all bank accounts. This notice also remained unresponded. By Annexure-P3 dated 15.11.2021 the assessee was called upon by the NAFC to furnish or cause to be furnished on or before 22.11.2021 the accounts and documents specified in the Annexure to the notice. The Annexure to the notice contains a detail description of the information and the explanation called for. The petitioner remained silent and did not submit his reply. Thereafter vide Annexure-P4 show cause notice as to why proposed variation should not be made was issued on 20.01.2022. The order contained in Annexure-P4 clearly stipulates that after recording reasons for reopening of the case after taking approval of PCIT-1, notice was issued under Section 148 dated 30.03.2021 but in response to the said notice the assessee has not filed any return of income till date. Annexure-P4 is a draft order of assessment made under Section 144 read with S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (1) of section 142 or under sub-section (1) of section 148, and a notice under sub-section (2) of section 143 has been issued by the Assessing Officer or the prescribed income-tax authority, as the case may be; or (b) has not furnished his return of income in response to a notice issued under sub-section (1) of section 142 by the Assessing Officer, or (c) has not furnished his return of income under sub-section (1) of section 148 and a notice under sub-section (1) of section 142 has been issued by the Assessing Officer,the National Faceless Assessment Centre shall intimate the assessee that assessment in his case shall be completed in accordance with the procedure laid down under this section; (iv) the National Faceless Assessment Centre shall assign the case selected for the purposes of faceless assessment under this section to a specific assessment unit in any one Regional Faceless Assessment Centre through an automated allocation system; (v) where a case is assigned to the assessment unit, it may make a request to the National Faceless Assessment Centre for- (a) obtaining such further information, documents or evidence from the asses-see or any other person, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fails to file response to the notice referred to in clause (xi) within the time specified therein or within the extended time, if any, the National Faceless Assessment Centre shall intimate such failure to the assessment unit: (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 the said income or sum, and send a copy of such order to the National Faceless Assessment Centre. (xv) the assessment unit shall, while making draft assessment order, provide details of the penalty proceedings to be initiated therein, if any; (xvi) the National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to- (a) finalise th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d time, if any; (xxiii) the National Faceless Assessment Centre shall,- (a) where no response to the show-cause notice is received as per clause (xiii) (A) in a case where the draft assessment order or the final draft assessment order is in respect of an eligible assessee and proposes to make any variation which is prejudicial to the interest of said assessee, forward the draft assessment order or final draft assessment order to such assessee, ог (B) in any other case, finalise the assessment as per the draft assessment order or the final draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; (b) in any other case, send the response received from the assessee to the assessment unit; (xxiv) the assessment unit shall, after taking into account the response furnished by the assessee, make a revised draft assessment order and send it to the National Faceless Assessment Centre; (xxv) the National Faceless Assessment Centre shall, upon receiving the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee files his objections with the Dispute Resolution Panel. the National Faceless Assessment Centre shall upon receipt of the directions issued by the Dispute Resolution Panel under sub-section (5) of section 144C, forward such directions to the concerned assessment unit; (xxx) the assessment unit shall in conformity of the directions issued by the Dispute Resolution Panel under sub-section (5) of section 144C, prepare a draft assessment order in accordance with sub-section (13) of section 144C and send a copy of such order to the National Faceless Assessment Centre, (xxxi) the National Faceless Assessment Centre shall, upon receipt of draft assessment order referred to in clause (xxx), finalise the assessment within the time allowed under subsection (13) of section 144C and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; (xxxii) the National Faceless Assessment Centre shall, after completion of assessment, transfer all the electronic records of the case to the Assessing Officer having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which includes record, checking whether the relevant and material evidence has been brought on record, whether relevant point of fact and law have been duly incorporated in the draft order, whether the issues on which addition or disallowance should be made have been discussed in the draft order, whether the applicable judicial decisions have been considered and dealt with in the draft order, checking for arithmetical correctness of variations proposed, if any, and such other functions as may be required for the purposes of review. (4) The assessment unit, verification unit, technical unit and the review unit shall have the following authorities, namely:- (a) Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, as the case may be; (b) Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Income-tax Officer, as the case may be; (c) such other income-tax authority, ministerial staff, executive or consultant, as considered necessary by the Board. (5) All communication among the assessment unit, review unit, verification unit or technical unit or with the assessee or any other person with respect to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the provisions of section 13 of the Information Technology Act, 2000 (21 of 2000); (vi) a person shall not be required to appear either personally or through authorised representative in connection with any proceedings before the income-tax authority at the National Faceless Assessment Centre or Regional Faceless Assessment Centre or any unit set up under this sub-section; (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 assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income-tax authority in any unit: (viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, under which the concerned unit is set up, may approve the request for personal hearing referred to in clause (vi) if he is of the opinion t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, tracking status of assessment, display of relevant details, and facility of download, (e) accessing, verification and authentication of information and response including documents submitted during the assessment proceedings (f) receipt, storage and retrieval of information or documents in a centralised manner; (g) circumstances in which proviso to sub-section (6) shall apply: (h) circumstances in which personal hearing referred to clause (vii) shall be approved; (i) general administration and grievance redressal mechanism in the respective Centres and units. (8) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Principal Chief Commissioner or the Principal Director General in charge of National Faceless Assessment Centre may at any stage of the assessment, if considered necessary, transfer the case to the Assessing Officer having jurisdiction over such case, with the prior approval of the Board." 29. It is submitted that notwithstanding the fact that notice was issued on 31.03.2021 itself, once the records were transferred to the 'NFAC', the department has followed the procedure as envisaged under Section 144B of the Act of 1961. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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