Delhi High Court
Hero Fincorp Limited vs National Faceless Assessment ... on 6 October, 2022
$~32
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 5351/2021
HERO FINCORP LIMITED ..... Petitioner
Through : Mr. Ajay Vohra, Senior Advocate
along with Mr.Rohit Jain and
Mr.Himanshu Aggarwal, Advocates.
versus
NATIONAL FACELESS ASSESSMENT
CENTRE DELHI (EARLIER NATIONAL
EASSESSMENT CENTRE DELHI) & ANR. ..... Respondents
Through : Mr. A. Renganath, Advocate for
Mr.Ajit Sharma, Senior Standing
Counsel for Revenue.
% Date of Decision: 6th October, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT
MANMEET PRITAM SINGH ARORA, J (ORAL):
1. The present writ petition has been filed challenging the assessment
order dated 30th April, 2021 and the consequential notices issued under
Section 156 and Section 274 read with Section 270A of the Income Tax Act,
1961 ('the Act').
2. It was stated in the petition that assessment order was passed under
Section 143(3) read with Section 144B of the Act, raising a substantial tax
and interest demand of Rs.86,62,88,770/-, without serving the petitioner
Signature Not Verified
Digitally Signed By:PRAMOD
Signing Date:10.10.2022
19:56:46
with the mandatory draft assessment order along with show cause notice, as
contemplated in Section 144B of the Act, although, the petitioner's declared
income was varied to its prejudice.
3. Notice was issued in the present writ petition on 18th May, 2021 and
the counsel for the respondent had sought time to take instructions in the
present matter. In the meantime, the operation of the impugned orders was
stayed.
4. Today, the learned counsel for the respondent states that he has
received instructions in the matter to the effect that the impugned orders
may be set aside and the matter may be remanded to the Assessing Officer
('AO') for determining the matter afresh.
5. For framing assessment under Section 143(3) of the Act, in terms of
Section 144B(1)(xvi)(b) of the Act (as it stood prior to the amendment
brought into effect by the Finance Act, 2022), the National Faceless
Assessment Centre ('NaFAC') before making a variation to the income
which is prejudicial to the assessee, was mandated to provide an opportunity
to the assessee to show cause as to why the proposed variation should not be
made and such a notice should be accompanied with the draft assessment
order, proposed to be passed.
6. In the present case, admittedly, no show cause notice, as contemplated
under Section 144B(1)(xvi)(b) of the Act was served on the petitioner,
thereby depriving the petitioner of its statutory right to file a response as
well as place the documents on record in support of its response and to be
heard before passing of the final assessment order.
7. We therefore, set aside the assessment order dated 30th April, 2021
and the consequential notices issued under Section 156 and Section 274 read
Signature Not Verified
Digitally Signed By:PRAMOD
Signing Date:10.10.2022
19:56:46
with Section 270A of the Act and remand the matter to the respondent No. 1
to complete the assessment proceedings within a period of twelve weeks
from today, in accordance with law.
8. We make it clear that we have not expressed any opinion on the
merits of the controversy in the writ petition.
9. With the above directions, the writ petition stands disposed of.
MANMEET PRITAM SINGH ARORA, J
MANMOHAN, J
OCTOBER 6, 2022
j
Signature Not Verified
Digitally Signed By:PRAMOD
Signing Date:10.10.2022
19:56:46
