M/S.Dsr Foundations vs The ...
2022 Latest Caselaw 17878 Mad

                                                                                 W.P.No.31972 of 2022



                              IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                    Dated: 29.11.2022

                                                        CORAM

                                  THE HONOURABLE DR. JUSTICE ANITA SUMANTH

                                             W.P.No.31972 of 2022 and
                                           WMP.Nos.31412 & 31414 of 2022

                M/s.DSR Foundations,
                Rep. by its Partner R.Rishikesh,
                41, Medavakkam Main Road,
                Ullagaram, Chennai-600 091.                                       ... Petitioner

                                                           Vs

                The Additional/Joint/Deputy/Assistant Commissioner/
                 Income tax officer,
                National Faceless Assessment Centre,
                Delhi.                                                            ... Respondent

                Prayer: Writ Petition filed under Article 226 of the Constitution of India
                praying to issue a Writ of Certiorari, to call for the records of the respondent in
                his proceeding in DIN/ITBA/AST/S/147/2021-22/1042116855(1) and quash
                the proceeding dated 30.03.2022 passed therein.


                                   For Petitioner    : Mr.B.Raveendran
                                   For Respondent    : Mrs.Hema Muralikrishnan
                                                       Senior Standing Counsel




https://www.mhc.tn.gov.in/judis
                1
                                                                                W.P.No.31972 of 2022

                                                   ORDER

Mrs.Hema Muralikrishnan, learned Senior Standing Counsel accepts

notice for the respondent and is armed with instructions to enable final disposal

of this matter, even at the stage of admission.

2. The challenge is to an order passed under the Faceless Assessment

Scheme under Section 144B of the Income Tax Act, 1961 (in short 'Act'). The

order of assessment is dated 30.03.2022. Admittedly, the petitioner has not

responded to the initial notice issued and it is only to show cause notice dated

09.03.2022 that was issued under Section 144 of the Act under threat of

completion of proceedings to the best of the officer's judgment, that the

petitioner responded on 18.03.2022.

3. The petitioner, along with response had also filed copies of bank

statements, balance sheet and profit and loss account. The issue relates to

explanation that was sought in support of certain cash deposits in the bank

accounts of the petitioner. The officer thereafter issued a draft assessment

order/show cause notice on 25.03.2022 seeking compliance within 24 hours,

i.e., on 26.03.2022. Despite the time afforded being only 24 hours, the

submission was uploaded on 26.03.2022, upon consideration of which the

impugned order has come to be passed.

https://www.mhc.tn.gov.in/judis

W.P.No.31972 of 2022

4. It is clear to me upon a perusal of sequence of events aforesaid, that

the prinicples of natural justice stand violated and the assessment has been

completed in haste leaving neither the petitioner nor the officer sufficient time

to study the issues and to arrive at a reasoned conclusion in regard to the same.

5. For the aforesaid reason, impugned order of assessment dated

30.03.2022 is set aside and the assessment shall be re-done de novo in strict

compliance with the provisions of natural justice and in accordance with law,

within a period of twelve (12) weeks from date of receipt of a copy of this

order.

6. This Writ Petition is allowed. No costs. Connected Miscellaneous

Petitions are closed.

29.11.2022 sl Index : Yes / No Speaking Order/Non-Speaking Order

To

The Additional/Joint/Deputy/Assistant Commissioner/ Income tax officer, National Faceless Assessment Centre, Delhi.

https://www.mhc.tn.gov.in/judis

W.P.No.31972 of 2022

Dr.ANITA SUMANTH, J.

Sl

W.P.No.31972 of 2022 and WMP.Nos.31412 & 31414 of 2022

29.11.2022

https://www.mhc.tn.gov.in/judis