M/S. Hexa Steel And Power Pvt. Ltd vs National Faceless Assessment ...
2023 Latest Caselaw 1035 Ori

                  IN THE HIGH COURT OF ORISSA AT CUTTACK
                                   W.P.(C) No. 2632 of 2023


            M/s. Hexa Steel and Power Pvt. Ltd., ....              Petitioner
            Delhi
                                        Mr. Sidhartha Ray, Senior Advocate
                                       -versus-
            National Faceless Assessment Centre, ....        Opposite Parties
            Delhi and Another
                               Mr. S.S. Mohapatra, Senior Standing Counsel

            CORAM:
            THE CHIEF JUSTICE
            JUSTICE M.S. RAMAN

                                     ORDER

Order No. 31.01.2023

01. 1. The grievance of the Petitioner is that prior to passing of the impugned order dated 28th December, 2022 under Section 148 of the Income Tax Act, 1961 (IT Act), the mandatory requirement of issuing a draft order in terms of Section 144B of the IT Act was not followed.

2. Although the order was indicated to be under Section 143(3) of the IT Act read with Section 144B of the IT Act, a perusal of the assessment order reveals that it indicates the total income determined and also issues the computation of income and demand notice under Section 156 of the IT Act with a further direction to issue penalty notice under Section 270A of the Act.

3. Mr. Sidhartha Ray, learned Senior Counsel appearing for the Petitioner relies on several judgments of this Court including the order dated 27th April, 2022 in W.P.(C) No.10213 of 2022 (Sasmita Panda v. ITO, National Faceless Assessment Center, Delhi) to urge that the violation of above mandatory requirement vitiates the impugned assessment order and the consequential demand.

4. Apart from the above, it is sought to be contended that just one day's time was given to the Petitioner to submit the documents in response to the show cause notice and on 28th December, 2022 i.e. one day after the deadline of 27th December, 2022, fixed by a notice dated 25th December 2022, the impugned assessment order was passed. In other words, insufficient time was given to the Petitioner even to respond the notice and produce the documents.

5. Notice. Mr. S.S. Mohpatra, learned Senior Standing Counsel accepts notice on behalf of the Opposite Parties and states that he will have to seek instructions.

6. Counter affidavit be filed within eight weeks. Rejoinder affidavit thereto, if any, be filed before the next date.

7. List on 23rd August, 2023.

I.A. No.1217 of 2023

7. No coercive action will be taken against the Petitioner till the next date pursuant to the impugned assessment order and demand notice (Annexures-1 and 2).

8. An urgent certified copy of this order be issued as per rules.

(Dr. S. Muralidhar) Chief Justice

(M.S.Raman) Judge S.K. Jena/Secy.