TaxTMI 
TaxTMI 
2021 (10) TMI 235
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.... addressed a communication dated 15th October, 2020 to Petitioner by which Petitioner was informed that its case (assessment proceedings) shall be completed under Faceless Assessment Scheme, 2019. Thereafter, a notice dated 16.12.2020 under Section 142(1) of the Act was issued by Respondent No.2 seeking further details / information followed by reminders dated 29.12.2020, 4.2.2021 and 4.3.2021. Petitioner responded vide its letters dated 28.12.2020, 5.1.2021, 18.2.2021 and 13.3.2021. What is material to note is that by a notice dated 9.4.2021 issued by Respondent No.2, which was under the faceless assessment scheme as per Section 144B of the Act, Petitioner was called upon to furnish further details for unsecured loans as well as certain other particulars. Petitioner was given time upto 6.54 p.m. on 13 April 2021 to furnish the relevant information. This notice has been digitally signed at 19:00:28 IST. The day was over by the time the notice was issued. 10th April 2021 was second Saturday, 11th April 2021 was Sunday and 13th April 2021 was Gudi Padwa, a public holiday in Maharashtra and many parts of India. So effectively Petitioner had one working day to respond. 4. Notwithsta....
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....ch provides for faceless assessment. He submitted that under Section 144B (1) (xvi), the National Faceless Assessment Centre ("NaFAC"), upon receipt of the draft assessment order prepared by the assessment unit, shall examine the draft assessment order and it may decide to provide an opportunity to the assessee, in case of any variation prejudicial to the interest of assessee is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made. Mr. Pardiwala further referred to Section 144B (1) (xxv)(b), which provides that where there are variations proposed in the revised draft assessment order, which are prejudicial to the interest of the assessee in comparison to the draft assessment order or the final draft assessment order, the NaFAC shall provide an opportunity to the assessee, by serving a notice calling upon him to show cause as to why the proposed variation should not be made. 10. Mr. Pardiwala has further relied upon Sub-section (9) of Section 144B which provides that notwithstanding anything contained in any other provision of this Act, assessment made under sub-section (3) of section 143 or under section 144 in the case....
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....e benefit of the scheme is slated to include "improvement in quality of assessment". The relevant provisions of section 144B are set out as under:- 144B : Faceless Assessment: (1) Notwithstanding anything to the contrary contained in any other provisions of this Act, the assessment under sub-section (3) of section 143 or under section 144, in the cases referred to in subsection (2), shall be made in a faceless manner as per the following procedure, namely:- (xvi) the National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to - (a) finalise the assessment, in case no variation prejudicial to the interest of assessee is proposed, as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, along with the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; or (b) provide an opportunity to the assessee, in case any variation prejud....
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.... held by this Court that the principles of natural justice cannot be violated and a show cause has to be issued before passing any order prejudicial to the assessee. 13. It is clear from reading of Section 144B that the assessee is required to be given an opportunity in case the variation proposed in the draft assessment order upon its examination by NaFAC is prejudicial to the interest of assessee by having served upon him a show cause notice calling upon him to show cause as to why the proposed variation should not be made. This would be equally applicable in case variation is proposed in a revised draft assessment order which is prejudicial to the interest of the assessee in comparison to the draft assessment order or the final draft assessment order. In that case too an opportunity shall be provided to the assessee by serving a show cause notice calling upon him to show cause as to why the proposed variation should not be made. It has been further provided in sub-section (9) of Section 144B that in the event that the final assessment order is not made in accordance with procedure laid down under Section 144B for faceless assessment, the assessment order shall be non est. Thu....