High Court stays draft assessment order & Notice of Demand under E-assessment Scheme, no coercive steps allowed.

The Bombay High Court granted an ad-interim order staying the effect of the draft assessment order and the Notice of Demand issued under the E-assessment Scheme until the next hearing date. The court directed that no coercive steps should be taken against the Petitioner in pursuit of the impugned order. The matter was adjourned for further proceedings to 21st June 2021.

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Issues: Glitches in E-assessment Scheme, Draft assessment order, Opportunity of hearing, Lock-down impact, Stay of impugned order and Notice of Demand

In this judgment by the Bombay High Court, the main issue revolves around the glitches in the operation of the E-assessment Scheme. The Petitioner had received a draft assessment order under this scheme on 23rd April, 2021, and was required to show cause as to why the assessment should not be completed as per the draft order. The Petitioner responded to this notice and requested an opportunity of hearing, citing difficulties due to the lockdown. Despite this, an order of assessment and a notice of demand amounting to Rs. 18,39,23,430 were issued. The Petitioner sought a stay on the impugned order and the Notice of Demand.

The court, considering the submissions made by the Petitioner's counsel, granted an ad-interim order staying the effect, implementation, and operation of the impugned order and the Notice of Demand until the next hearing date. The prayer clause of the order specifically directed that no coercive steps should be taken against the Petitioner in pursuit of the impugned order or the Notice of Demand. The matter was adjourned to 21st June 2021 for further proceedings.

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