Court allows exemption from court fee, sets aside assessment order under Income Tax Act. Emphasizes need for statutory compliance.

The court allowed the petitioner's exemption from filing court fee and a sworn affidavit, subject to certain conditions. The assessment order under the Income Tax Act, 1961, for the relevant year was challenged due to lack of a show cause notice-cum-draft assessment order. The court set aside the assessment order and related notices, granting the revenue the opportunity to issue a fresh assessment order in compliance with the law. Emphasizing the necessity of following statutory provisions and the Faceless Assessment Scheme, the court highlighted the importance of issuing show cause notices in cases of income variation and granted a personal hearing through video conferencing for the petitioner's authorized representative.

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Issues:
1. Exemption from filing court fee and sworn affidavit.
2. Challenge to assessment order under Income Tax Act, 1961.
3. Lack of show cause notice-cum-draft assessment order.
4. Variation in declared income and addition to income.
5. Compliance with Section 144B and Faceless Assessment Scheme, 2019.

Exemption from filing court fee and sworn affidavit:
The petitioner sought exemption from filing requisite court fee and sworn/notarised/affirmed affidavit. The court allowed the application subject to exceptions, directing the petitioner to submit the sworn affidavit and court fee within three days of the court's normal work pattern resumption.

Challenge to assessment order under Income Tax Act, 1961:
The writ petition challenged the assessment order dated 07.04.2021 under Sections 143(3), 143(3A), and 143(3B) of the Income Tax Act, 1961, for Assessment Year 2018-2019. The petitioner contended that the assessment order was issued without a show cause notice-cum-draft assessment order. The court issued notice to the respondent/revenue and set aside the assessment order and consequential notices, granting liberty to the revenue to pass a fresh assessment order in accordance with the law.

Lack of show cause notice-cum-draft assessment order:
The petitioner's main grievance was the absence of a show cause notice-cum-draft assessment order before the issuance of the assessment order. The court noted the variation in the declared income and emphasized the necessity of following the provisions of Section 144B of the Act and the Faceless Assessment Scheme, 2019. Referring to a previous judgment, the court set aside the assessment order and related notices.

Variation in declared income and addition to income:
Initially, the petitioner declared an income of Rs. 87,55,390, later revised to Rs. 73,59,500. The assessment order dated 07.04.2021 added Rs. 13,95,890 to the declared income. The court highlighted the significance of issuing a show cause notice-cum-draft assessment order in cases of income variation, as per statutory requirements and the Faceless Assessment Scheme, 2019.

Compliance with Section 144B and Faceless Assessment Scheme, 2019:
The court emphasized the importance of adhering to Section 144B of the Act and the Faceless Assessment Scheme, 2019, in assessment proceedings. Citing a previous judgment, the court set aside the impugned assessment order and related notices, granting the revenue the opportunity to conduct a fresh assessment order while ensuring a personal hearing for the petitioner's authorized representative through video conferencing.

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