2022 (5) TMI 376

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....n 17.4.2021 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 17.04.2021 being Annexure P/15 as being illegal and arbitrary. 10.3. Quashing all consequential demand notices including demand notice dated 17.04.2021 being Annexure P/16 . 10.4. Quashing the notice initiating penalty proceedings under S. 271AAC (1) being Annexure P/17 dated 17.04.2021. 10.5. As an interim measure, staying the effect and operation of the assessment order being Annexure P/15 dated 17.04.2021 and directing the respondents to not take any coercive measures for recovery of tax demands till the disposal of this petition. a....

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....rein to which also petitioner responded. She submits that in the meantime, Section 144B of the Act of 1961 was inserted under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, which came into force w.e.f. 01.04.2021. Section 144B of the Act of 1961 provides detailed procedure to be followed by the Department for assessment under the Faceless Scheme. As per Section 144-B of the Act of 1961, the respondent Department is required to issue draft assessment to the National Faceless Assessment Centre to provide an opportunity to assessee, in case any variation prejudicial to the interest of assessee is proposed, by serving draft assessment and notice calling upon assessee to show-cause as to why proposed vari....

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....the interest of an assessee. In support of her contention, she referred to specific provision under Section 144B (1) (xvi) (b) and (xxv) of the Act of 1961. She submits that as procedure prescribed for assessment under the Scheme has not been followed, consequence of such procedure is also provided under Section 144B (9) of the Act of 1961. If assessment is not made in accordance with procedure laid down under this Section, it shall be non-est. It is also argued that National Faceless Assessment Centre, Delhi has issued Letter bearing No. NaFAC/ Delhi / CIT-3 / 2021-22 / 340 / 148 dated 31.12.2021 to all the Chief Commissioner of Income Tax Department after analyzing procedural lapses during assessment proceedings of passing of an order wi....

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....ined 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 time of submission of his case on merits is that non- following of the procedure prescribed under Section 144B of the Act of 1961 will make the proceedings non-est. The Ministry of Law and Justice (Legislative Department), New Delhi issued Gazette Notification dated 30.3.2022 wherein sub-section (9) of Section 144B of the Act of 1961 ha....