Delhi High Court
Akashganga Infraventures India ... vs National Faceless Assessment ... on 4 August, 2021
$~14
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Date of Decision: 04.08.2021
+ W.P.(C) 5413/2021 & C.M.Nos.16749/2021, 18049/2021
AKASHGANGA INFRAVENTURES INDIA LIMITED
..... Petitioner
Through Mr.Prakash Kumar, Advocate
& Ms. Rashmi Singh, Advocates.
versus
NATIONAL FACELESS ASSESSMENT CENTRE, DELHI
(EARLIER NATIONAL E-ASSESSMENT CENTRE DELHI)
..... Respondent
Through Mr.Zoheb Hossain, Sr.Standing
Counsel for the Department.
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MR. JUSTICE NAVIN CHAWLA
MANMOHAN, J. (Oral)
1. The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the Assessment
order, notice of demand and notice of penalty dated 19th April 2021
passed under Section 143(3) read with Section 144B, Section 156 and
Section 274 read with Section 271AAC(1) of the Income Tax Act, 1961
[the Act] pertaining to the Assessment Year 2018-19.
3. Learned counsel for the Petitioner states that there has been a
breach of principles of natural justice, inasmuch as the
respondent/revenue has failed to issue the mandatory Show Cause
Signature Not Verified
Digitally Signed
Signing Date:04.08.2021
22:53:11
Notice-cum-draft assessment order to the petitioner/assessee, prior to
passing of the impugned assessment order.
4. Per contra, the counsel for the Respondent-Revenue states that
the final Assessment order has been passed without issuance of a formal
Show Cause Notice due to program and systemic glitches and he points
out that the petitioner has been given ample opportunities and time for
furnishing the requisite details and making submissions and hence there
was no violation of principles of natural justice.
5. This Court is of the view that Section 144B (7) mandatorily
provides for issuance of a prior show cause notice and draft assessment
order before issuing the final assessment order. The relevant portion of
Section 144B (7) and Section 144B (9) are reproduced hereinbelow: -
"144B. Faceless assessment -
(1) xxxx xxxx xxxx
xxxx
(7) For the purposes of faceless assessment--
xxxx xxxx xxxx
xxxx
(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;
xxxx xxxx xxxx
(9) Notwithstanding anything contained in any other provision of
this Act, assessment made under sub-section (3) of section 143 or
under section 144 in the cases referred to in sub-section (2)
[other than the cases transferred under sub-section (8)], on or
Signature Not Verified
Digitally Signed
Signing Date:04.08.2021
22:53:11
after the 1st day of April, 2021, shall be non est if such
assessment is not made in accordance with the procedure laid
down under this section."
6. Since in the present case no prior Show Cause Notice as well as
draft assessment order had been issued before passing the impugned
assessment order, there is a blatant violation of principles of natural
justice as well as mandatory procedure prescribed in "Faceless
Assessment Scheme" and as stipulated in Section 144B of the Act.
7. Keeping in view the aforesaid facts, the impugned assessment
order, notice of demand and notice of penalty dated 19th April, 2021 for
the Assessment Year 2018-19 are set aside and the matter is remanded
back to the Assessing Officer, who shall issue a draft assessment order
and thereafter pass a reasoned order in accordance with law.
8. With the aforesaid direction, the present writ petition along with
pending application stands disposed of.
9. The order be uploaded on the website forthwith. Copy of the
order be also forwarded to the learned counsel through e-mail.
MANMOHAN, J
NAVIN CHAWLA, J
AUGUST 4, 2021
KA
Signature Not Verified
Digitally Signed
Signing Date:04.08.2021
22:53:11
