Faceless assessment fairness challenge: prior show-cause notice and relevant material sought before assessment order; interim stay granted.

In a faceless assessment challenge, the assessee contended that the assessment order could not be passed without a prior show-cause notice and the relevant material supporting proposed additions or disallowances, relying on the Faceless Assessment Scheme, 2019, the 2021 amendment scheme, and CBDT Instruction No. 20/2015. The court issued notice and directed the Revenue to file a counter-affidavit. Interim protection was granted by staying operation of the impugned assessment order pending further hearing.

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Issues: Whether, in a faceless assessment, the assessee was entitled to prior show-cause notice with relevant material before passing the assessment order, and whether interim protection should be granted pending further hearing.

Analysis: The petition raised a contention that the assessment under the Faceless Assessment Scheme, 2019 read with the Faceless Assessment (1st Amendment) Scheme, 2021 required issuance of a show-cause notice accompanied by relevant material before the assessment order could be made. Reliance was also placed on CBDT Instruction No. 20/2015, which emphasises a fair opportunity and prior notice before additions or disallowances are made. The matter was taken up for notice and the Revenue was directed to file a counter-affidavit.

Outcome: Notice issued. Interim stay granted on the operation of the impugned assessment order.

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