2021 (8) TMI 570

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.....2.2020. The ultimate direction issued in paragraph 18 of the impugned order, at the first blush, appears to be an innocuous direction. 4. However, the learned Senior Standing Counsel appearing for the appellant would contend that the observations and findings rendered by the learned Single Judge have far reaching consequences and that they have got cascading effect on other matters, which are pending before various forums. It is further contended that the learned Single Judge made certain observations commenting upon the efficacy and efficiency of the E-Proceeding facility introduced by the Income Tax Department. It is submitted that no opportunity was granted to the appellant to file a counter affidavit, as the said writ petition was heard and orders were reserved on the day when it came up for admission. Furthermore, the learned Single Judge also touched upon the merits of assessment and made certain observations, which is not done in a writ proceeding, especially when disputed questions of fact are involved. Therefore, it is his further submission that the impugned order passed in the said writ petition and the observations contained therein are liable to be interfered with.....

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.... in mind, if we examine the case as projected by the learned counsel for the respondent herein, we find that it is a case where the respondent herein ought not to have been permitted to bypass the appeal remedy available to them under the provisions of the Act. 10. In the affidavit filed in support of the said writ petition, the respondent herein challenged the order dated 27.12.2019 firstly on the ground of violation of the principles of natural justice and secondly on the ground that the assessment and the demand are vitiated on account of total non application of mind. Thirdly, it is submitted that the addition made under Section 69A of the Act on the demonetized cash deposit by the respondent herein in the bank is erroneous, as the respondent herein is in the business of conducting chits in the regular course of business as per the Chit Funds Act, that the balance of Specified Bank Notes (SBN) available as on 08.11.2016 was only deposited and that the entire cash deposit was explained with reference to the cash collected from the subscribers prior to 08.11.2016 supported with reconciliation statements. Similar is the challenge to the addition under Section 69A of the Act stati....

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....ssessment in a particular manner, because the Assessing Officer has to independently decide an issue and should not be guided by any terms and conditions issued by the superior authority. The Assessing Officer should be only guided by judicial precedents and should be guided by judicial discipline. Hence, the exercise directed to be done in paragraph 18 of the impugned order is held to be not sustainable. 15. Furthermore, we find that in paragraph 16, the learned Single Judge proceeded to record a finding that the respondent herein, prima facie, demonstrated that the assessment proceedings resulted in distorted conclusion on fact that the amount collected by the respondent herein during the period was huge and remained unexplained by the respondent herein and therefore, the same was liable to be treated as unaccounted money in the hands of the respondent herein under Section 69A of the Act. It was also recorded by the learned Single Judge that the assessment order making the respondent herein liable to tax at the maximum marginal rate of tax by invoking Section 115BBE of the Act placing reliance on the decision of the Hon'ble Supreme Court in the case of Smt.Shrilekha Banerjee....

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.... Note on E-Proceeding read as hereunder : "1. As a part of e-governance initiative, to facilitate conduct of assessment proceedings electronically, Income Tax Department has developed the 'E-Proceeding' facility. It is a simple way of communication between the Department and the assessee in a hassle free manner, through electronic means, without the necessity to visit Income Tax Office for conduct of assessment proceedings. This new facility is also environment friendly as assessment proceedings have now become paperless. 2. In assessment proceedings through the 'E-Proceeding' functionality, there is a seamless flow of letters, notices, questionnaires, orders, etc., from Assessing Officer to assessee' E-filing account. On receipt of Departmental communication, assessee is able to submit his response along with attachments, if any, by uploading the same on the E-filing portal. The response submitted by the assessee is also viewed by the Assessing Officer electronically. Thus, besides saving precious time of the taxpayer, 'E-Proceeding' also provides a 24X7 anytime/ anywhere convenient facility to submit response to the Departmental queries in course o....