TaxTMI 
TaxTMI 
2021 (11) TMI 882
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....ompany incorporated under the Companies Act, 2013. Petitioner company is engaged in the business of manufacturing tobacco products and real estate. Petitioner had filed its return of income for the Assessment Year 2018-2019 under Section 139 of the said Act declaring total losses of Rs. 40,65,00,408/-. Income Tax Authority on 22/9/2019 issued a notice under Section 143(2) of the said Act to Petitioner initiating scrutiny assessment for Assessment Year 2018-2019. Petitioner filed its reply on 7/10/2020, giving computation of income, tax audit report and financial for Assessment Year 2018-2019. Respondent No.1 on 15/10/2020 informed Petitioner that Faceless Assessment Scheme, 2019, shall apply to the pending assessment proceedings. On 23/12/2020, respondent No.1 issued a notice under Section 142(2) of the Act requesting Petitioner to submit various details. Petitioner, on 7/1/2021, filed a partial reply giving details of other allowable deductions, disallowance under Section 40(a) (ia) of the said Act. Respondent No.1 on 26/3/2021 issued another notice to Petitioner seeking various details, which was replied online by Petitioner on 28/3/2021. Respondent No.1 on 26/4/2021 issued impug....
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....ted 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 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; or (c) assign the draft assessment order to a review unit in any one Regional Faceless Assessment Centre, through an automated allocation system, for conducting review of such order; ......................... (xxii) the assessee may, in a case where show-cause notice has been served upon him as per the procedure laid down in sub-clause (b) of clause (xvi), furnish his response to the National Faceless Assessment Centre on or before the date and time specified in the notice or within the extended....
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.... prior approval of the Board, lay down the standards, procedures and processes for effective functioning of the National Faceless Assessment Centre, Regional Faceless Assessment Centres and the unit set up, in an automated and mechanised environment, including format, mode, procedure and processes in respect of the following, namely:- .......................... (h) circumstances in which personal hearing referred to clause (viii) shall be approved; ......................... 9) 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 cases referred to in sub-section (2) (other than the cases transferred under sub-section (8), on or after the 1st day of April, 2021), shall be non-est if such assessment is not made in accordance with the procedure laid down under this Section. 7. Section 144B(1) of the Act deals with the procedure of Faceless Assessment. Though the expression 'shall' used in the opening of Section 144B (1) ordinarily implies a mandate, the statute has to be looked at having regard to the legislative intent and purpose. Section 144B(1)(x....
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....n in said Section. 9. Canon for interpretation and the indices are well settled as to whether a provision is a directory or mandatory. To interpret a provision as mandatory, it has to be looked into, inter alia, as to whether non-compliance with the provision could render the entire proceeding invalid or not. Whether the provision is mandatory or directory, the interpretation has to be in the light of the context, circumstances, consequence, purpose, and object sought to be achieved. The issue has to be examined having regard to the context, subject matter and object of insertion of faceless assessment in the statute book. The court may find out the consequence that would flow from construing it in one way or another. The court shall also consider whether non-compliance gives rise to penalty or serious consequence and whether a particular breach will render it invalid. It is well settled insofar as mandatory provisions are concerned; it nullifies the Act if not complied with. 10. It is also one of the object behind introduction of faceless assessment to promote efficient, effective tax administration, interface to increase accountability and introduce team-based assess....