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of <h1>Court Stays Assessment Order Over Alleged Breaches in Faceless Assessment Scheme Pending Further Hearing.</h1> <h3>K.L. Trading Corporation Versus National E-Assessment Centre Delhi & Anr.</h3> K.L. Trading Corporation Versus National E-Assessment Centre Delhi & Anr. - TMI Issues involved:1. Alleged breach of principles of natural justice in a Faceless Assessment Scheme.2. Variation in declared income leading to additions in assessment order.3. Prima facie case for issuance of notice and grant of an interim order.Analysis:1. The petitioner raised concerns regarding the Faceless Assessment Scheme 2019 not being adhered to, alleging a breach of natural justice principles engrafted in the Scheme. Reference was made to the Faceless Assessment (1st Amendment) Scheme, 2021, highlighting specific provisions requiring a show-cause notice before finalizing variations in declared income for the assessment year 2018-2019.2. The impugned assessment order dated 31.03.2021 revealed an increase in the petitioner's declared income from Rs. 2,00,76,180 to Rs. 3,50,79,205. The additions were related to unsecured loans and disallowances under Section 14A of the Income Tax Act, 1961. The court acknowledged the petitioner's prima facie case for the issuance of notice and the grant of an interim order based on the variations made.3. Consequently, the court directed the issuance of notice to the respondents, with the senior standing counsel for revenue accepting service on their behalf. A counter-affidavit was to be filed within three weeks, with a provision for rejoinder before the next hearing date. The operation of the assessment order was stayed until the next hearing scheduled for 21.05.2021, recognizing the need for further examination and resolution of the issues raised by the petitioner regarding the assessment discrepancies.
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