Assessment Order Overturned: Lack of Video Conferencing Violates Taxpayer Rights; Case Remanded for Reassessment.

The HC invalidated the assessment order dated 29th March 2024, due to the lack of a personal hearing opportunity via video conferencing as required under Section 144B(6)(viii) of the Income Tax Act. The matter was remanded to the Faceless Assessment Unit to provide a video conferencing link for a personal hearing. The Unit must reassess the case within eight weeks independently, without delving into the assessment's merits. The notice issued under Section 156 for the Assessment Year 2022-23 was also set aside, and the writ petition was disposed of with specific compliance directions.

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Issues:
Challenge to order under Income Tax Act for Assessment Year 2022-23 regarding personal hearing through video conferencing.

Analysis:
The petitioner challenged an order issued under the Income Tax Act, 1961, for the Assessment Year 2022-23, which was issued under Section 143(3) of the Act along with Section 144B. The main issue was whether the petitioner was given the opportunity of personal hearing through video conferencing as requested under Section 144B(6)(viii) of the Act.

The petitioner claimed that despite requesting a personal hearing and the respondents approving it, they were unable to attend as the communication did not provide a video conferencing link. The court directed the respondents to investigate the matter further. The respondents submitted an intimation notice stating that the petitioner was notified of the video conferencing link, but the petitioner did not log in, resulting in no personal hearing. The court examined a printout from the petitioner's account showing that the notice was not visible on the portal, contradicting the respondent's claim.

The court noted that under Section 144B(6)(viii) of the Act, when a variation is proposed in income or loss, the assessee must be given an opportunity for personal hearing upon request. The court found that the petitioner's request was approved, but no video conferencing link was shared, as required by the statute. Mere creation of a meeting ID/link by the Faceless Assessment Unit does not fulfill the obligation of offering a personal hearing. The court deemed the assessment order invalid due to the lack of a personal hearing opportunity.

Consequently, the court set aside the order dated 29th March, 2024, and remanded the matter to the Faceless Assessment Unit for providing the petitioner with a video conferencing link for a personal hearing. The Unit was directed to decide the matter afresh within 8 weeks from the date of the court's order. The court clarified that it did not delve into the assessment's merits and allowed the Unit to pass an appropriate order independently. The notice issued under Section 156 of the Act for the Assessment Year 2022-23 was also set aside. The writ petition was disposed of with specific directions for compliance.

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