Court sets aside assessment order due to procedural irregularities in Faceless Assessment Scheme, ensuring fair opportunity for response.

The court set aside the assessment order for the assessment year 2017-18 under the Income Tax Act, 1961, due to procedural irregularities in the Faceless Assessment Scheme. The petitioner was not provided a fair opportunity to respond to the show cause notice, with insufficient time for preparation and lack of direct intimation about the hearing. The court directed the petitioner to file a response, ensuring proper procedures were followed, including enabling a personal hearing. The entire process was to be completed within twelve weeks from the court's order, with the writ petition allowed and no costs imposed.

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Issues:
Challenge to assessment order under Income Tax Act, 1961 for assessment year 2017-18. Adherence to principles of natural justice under Faceless Assessment Scheme.

Analysis:
The petitioner challenged the assessment order dated 29.12.2019 for the assessment year 2017-18 under the Income Tax Act, 1961. The court noted that the Faceless Assessment Scheme's procedures concerning natural justice were not followed in this case. While the petitioner was given an opportunity to submit an explanation in response to the show cause notice, there were discrepancies in the procedure followed. The show cause notice was issued on 28.12.2019, signed on the same day at 3.39 p.m., and required the petitioner's attendance at a hearing on the same day at 7.00 p.m., allowing only a mere 3 hours for preparation. Additionally, the notice was only uploaded on the portal without any intimation sent to the petitioner directly, leading to the petitioner being unaware of the notice and hearing. The court found the approach of the assessing authority to be callous in bypassing the requirement of providing an effective opportunity for a hearing.

The impugned assessment order was set aside by the court due to the procedural irregularities. The court directed the petitioner to file a response to the show cause notice, with the respondents required to open/enable the portal for this purpose. Once the reply was received, a link for a personal hearing would be provided to the petitioner, and the assessment orders would be passed afresh. The court mandated that the entire process, from opening the portal to passing the assessment orders, must be completed within twelve weeks from the date of receipt of the court's order. The writ petition was allowed with no costs, and connected miscellaneous petitions were closed.

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