INCOME TAX ACT, 1961

Section 144B

Assessment - Faceless assessment - No opportunity of hearing as envisaged under section 144B afforded to assessee -

Assessee by way of writ petition challenged assessment order, under section 147 read with section 144B on the ground that same was passed by AO in gross violation of principles of natural justice, since draft assessment order in accordance with section 144B was not served and the adjournment application and reply furnished by assessee was overlooked by not providing any opportunity of personal hearing, resulting into demand. AO took plea of alternative and efficacious remedy available with assessee. Held: The opportunity of hearing as envisaged under section 144B is required to be scrupulously adhered to as the principles of natural justice are unfailingly ingrained in the procedure prescribed for Faceless Assessment. In the fact of the case, it was not in dispute that draft assessment order was not forwarded to assesee, which was required to be sent along with the show-cause notice as per the procedure prescribed under section 144B(1)(xvi)(b). Parimal Enterprise Ltd. v. Addl. CIT (2021) 129 Taxmann.com 18 (Bom) : 2021 TaxPub(DT) 4189 (Bom-HC), Sanjay Agrawal v. National Faceless Assessment Centre, Delhi, (2021) 127 Taxmann.com 637 (Del-HC) : 2021 TaxPub(DT) 3069 (Del-HC). Therefore, assessment order was quashed and set aside.

Relied:Parimal Enterprise Ltd. v. Addl. CIT (2021) 129 Taxmann.com T18 (Bom-HC) : 2021 TaxPub(DT) 4189 (Bom-HC), Sanjay Aggarwal v. National Faceless Assessment Centre, Delhi, (2021) 127 Taxmann.com 637 (Del) : 2021 TaxPub(DT) 3069 (Del-HC), Whirlpool Corporation v. Registrar of Trade Marks. & Ors. (1998) 8 SCC 1 (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

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