Failure to follow procedure leads to quashing assessment order, applicant granted video conference hearing.

The court found the assessment order null and void due to the respondent's failure to follow the statutory procedure under Section 144B of the Income Tax Act, specifically denying a personal hearing via video conferencing. The court quashed the order, directing the Assessing Officer to provide the applicant with a video conference hearing within 15 days' notice. Assessment proceedings were to be completed within three months from the court's order. The writ application was deemed maintainable, emphasizing that statutory remedies do not preclude judicial review for violations of natural justice principles.

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Issues Involved:
1. Violation of Section 144B of the Income Tax Act, 1961.
2. Denial of personal hearing through video conferencing.
3. Maintainability of the writ application.

Issue-wise Detailed Analysis:

1. Violation of Section 144B of the Income Tax Act, 1961:
The writ applicant challenged the assessment order dated 12.08.2021, asserting it was illegal and arbitrary, passed in gross violation of Section 144B of the Income Tax Act, 1961. The applicant argued that the order was issued without following the due procedure prescribed under Section 144B, specifically the National Faceless Assessment Centre (NFAC) procedures. Section 144B mandates a faceless assessment process, ensuring transparency and adherence to principles of natural justice. The court noted that Section 144B(9) explicitly states that any assessment not made in accordance with its procedures is non-est, thus rendering the impugned order void.

2. Denial of Personal Hearing Through Video Conferencing:
The writ applicant contended that despite multiple requests for a personal hearing via video conference, the respondent authority failed to provide such an opportunity. The applicant had made specific requests on 10.04.2021 and 09.08.2021, which were ignored, leading to the final assessment order being passed without the mandated hearing. The court referenced similar cases, including Agrawal JMC Joint Venture vs. Assistant/Joint/Deputy/Assistant Commissioner of Income Tax, and decisions by the Delhi and Bombay High Courts, which underscored the necessity of granting a personal hearing when requested. The court concluded that the respondent's failure to provide a video conference hearing was a clear violation of the statutory scheme under Section 144B and principles of natural justice.

3. Maintainability of the Writ Application:
The respondent authorities argued against the maintainability of the writ application, suggesting that the applicant should have pursued an appeal under Section 246A of the Act. However, the court held that the writ application was maintainable due to the fundamental breach of procedural requirements under Section 144B, which rendered the assessment order non-est. The court emphasized that statutory remedies do not preclude judicial review in cases where principles of natural justice are violated.

Conclusion:
The court held that the assessment order dated 12.08.2021 was null and void due to the respondent authority's failure to adhere to the statutory procedure under Section 144B, specifically the denial of a personal hearing through video conferencing. The court quashed the impugned order and directed the Assessing Officer to grant the writ applicant an opportunity for a personal hearing via video conference, with a 15-day advance notice. The assessment proceedings were ordered to be completed within three months from the date of receipt or upload of the court's order. The writ application was disposed of accordingly.

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