Court orders expeditious disposal of appeal challenging Income Tax Assessment Order, grants petitioner right to personal hearing.

The court declined to delve into the Writ Petition on merits but directed the expeditious disposal of the pending appeal challenging the Assessment Order under the Income Tax Act. The appeal should be decided after providing a reasonable opportunity to the petitioner, including a personal hearing if requested. The Commissioner of Income Tax (Appeals) was instructed to decide the appeal within two months, and respondents were restrained from recovering amounts based on the challenged Assessment Order until then. No costs were awarded, and miscellaneous petitions were closed.

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Issues:
Challenge to Assessment Order under Income Tax Act, 1961 - Lack of reasonable opportunity under faceless Assessment Scheme.

Analysis:
The Writ Petitioner challenged an Assessment Order passed under Section 143 (3) r/w Section 144 B of the Income Tax Act, 1961, along with the consequential notice of demand. The petitioner's Senior Counsel argued that the impugned order was issued without providing a reasonable opportunity as required under the faceless Assessment Scheme. He highlighted that the scheme mandates the issuance of a draft Assessment Order, which should be finalized only after considering the objections of the petitioner. However, in this case, the assessment was concluded without providing a reasonable opportunity. The Assessment Order included unsecured loans and share capital as income, leading to a total income of &8377;102,77,12,910. An appeal was filed before the Commissioner of Income Tax (Appeals) on 10th May 2021, and an application for stay of the demand was also submitted but remained undecided.

Analysis:
The Senior Counsel, despite challenging the Assessment Order and demand notice, expressed satisfaction if the pending appeal is disposed of expeditiously and interim protection is granted. The Standing Counsel (IT) acknowledged constraints in expeditiously disposing of the appeal but agreed to expedite the stay application. The Court, considering the appealability of the Assessment Order and the pending appeal, declined to delve into the Writ Petition on merits. However, due to the main issues revolving around the inclusion of unsecured loans and share capital in the assessee's total income, the Court directed the expeditious disposal of the pending appeal before the Commissioner of Income Tax (Appeals). The appeal should be decided after providing a reasonable opportunity to the petitioner, including a personal hearing if requested.

Analysis:
Consequently, the Writ Petition was disposed of by instructing the Commissioner of Income Tax (Appeals) to expeditiously decide the appeal against the Assessment Order within two months. Until then, the respondents were restrained from recovering amounts based on the challenged Assessment Order. No costs were awarded, and the connected miscellaneous petitions were closed as a result of the judgment.

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