2022 (5) TMI 338

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.... of 1961') passed on 16.4.2021 has approached this Court by filing instant writ petition seeking following reliefs:- "10.1. Calling for the records of the case. 10.2. Quashing order of the Assessing Officer, dated 16.04.2021 being Annexure P/18 as being illegal and arbitrary. 10.3. Quashing all consequential demand notices including demand notice dated 16.04.2021 being Annexure P/18 . 10.4. Quashing the notice initiating penalty proceedings under S. 270A being Annexure P-19 dated 16.04.2021. 10.4. As an interim measure, staying the effect and operation of the assessment order being Annexure P-18 dated 16.04.2021 and directing the respondents to not take any coercive measures for recovery of tax d....

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....o why 12.5% WIP of two projects should not be treated as income of petitioner for the assessment year under consideration in view of provisions of Section 43CB of the Act of 1961. Petitioner filed its reply mentioning that query raised by the Department was already answered in reply dated 4.2.2021. Respondent Department issued notice under Section 144B (1) (xvi) (b) of the Act of 1961 along with draft assessment order proposing an addition of Rs.1,69,87,406/- to the returned income of petitioner. This notice was also responded by petitioner on 8.4.2021 and sought time on medical ground. Respondent Department completed assessment proceedings and passed an order of assessment under Section 143 (3) read with Section 143 (3A) & 143 (3B) of the ....

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....nt his case before the Income Tax Authority. Petitioner made request for virtual hearing which was not considered and thereby respondent authorities have acted contrary to the procedure prescribed under Section 144B of the Act of 1961. Hence, the entire assessment proceeding is non-est in view of provisions of Section 144B (9) of the Act of 1961 and are liable to be quashed. In support of above contention, learned counsel places reliance on the order of High Court of Delhi dated 3.5.2021 in WPC No.4814/2021 (DJ Surfactants v. National E-assessment Centre, Income Tax Department, New Delhi); order dated 28.4.2021 passed by High Court of Madras in WP No.10693/2021 & WMP Nos.11326 and 11327/2021 (M/s Magick Woods Exports Pvt. Ltd. vs. Additiona....

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.... support of his contention, he places his reliance on the orders passed this High Court in WPT Nos.60/2016, 64/2018, 91/2018, 2/2019, 142/2021; WA No.293/2017. 4. In reply to objection with regard to maintainability of writ petition, learned counsel for petitioner submits that as there is non-compliance of the provisions contained in Section 144B of the Act of 1961 which itself provides that any proceeding initiated for assessment, which is not made in accordance with procedure laid down under Section 144B of the Act of 1961, shall be non-est. Hence writ petition is maintainable. 5. I have heard learned counsel for the parties and perused the documents available on record. 6. Main thrust of learned counsel for petitioner at the tim....