Court dismisses petition challenging Income Tax assessment order for 2018-19, upholding faceless assessment proceedings. Government Company advised to pursue statutory appeal.

The Court dismissed the petition challenging the assessment order under the Income Tax Act for the assessment year 2018-19. It held that there was no violation of natural justice in the faceless assessment proceedings conducted by the Revenue. The Court directed the petitioner, a Government Company, to pursue the statutory remedy of appeal against the assessment order as provided by law, thereby disposing of the petition.

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Issues involved: Challenge to assessment order under Income Tax Act for assessment year 2018-19 on grounds of violation of natural justice and seeking judicial review under Article 226 of the Constitution.

Summary:
The petition filed under Article 226 of the Constitution challenges the assessment order dated 29.04.2021 passed by the Income Tax Department under Sections 143(3) and 144 B of the Income Tax Act for the assessment year 2018-19. The petitioner, a Government Company formerly known as M.P. Trade & Investment Facilitation Corporation Ltd., was selected for scrutiny by JAO as per CBDT instructions. Despite delays in responding to notices and providing necessary documents, the Revenue proceeded with the assessment. The petitioner contended that the assessment order violated the principle of natural justice, justifying the invocation of judicial review under Article 226.

The Court had earlier restrained the respondents from taking coercive steps against the petitioner pending the case. The petitioner argued that the impugned assessment order was a blatant violation of natural justice, eliminating the need for an appeal and warranting judicial review under Article 226. The Revenue conducted faceless proceedings, and the petitioner alleged denial of physical hearing opportunity, which the Court found unsubstantiated, given the circumstances and the availability of online proceedings during the pandemic. The Court concluded that there was no denial of a reasonable opportunity to be heard during the faceless assessment by the Revenue.

In light of the above, the Court held that the petitioner must avail the statutory remedy of appeal against the assessment order as per the law. The petition was disposed of with the liberty granted to the petitioner to pursue the appeal as per statutory provisions.

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