TaxTMI 
TaxTMI 
2022 (7) TMI 178
X X X X Extracts X X X X
X X X X Extracts X X X X
....shing the assessment order passed by Respondent u/s. 143 (3) r.w.s. 144B dated 8.6.2022 at Annexure - N and demand notice u/s.156 of even date at Annexure O. (B) This Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondent to grant complete stay of demand arising out of assessment order passed u/s. 143 (3) r.w.s. 144 B dated 8.6.2021 at Annexure N. (C) Pending the hearing and final disposal of this application, this Hon'ble Court be pleased to stay operation and implementation of assessment order passed u/s. 143(3) r.w.s. 144B dated 8.6.2021 at Annexure N and further stay the recovery of demand in pursuance of notice issued u/s.156 at Annexure O." 3. In response to the notice issued by this Court, the respondents have filed affidavit-in-reply dated 22.9.2021, to which affidavit-in-rejoinder dated 20.10.2021 has been filed by the petitioner. 4. Brief facts of the case are as under :- 4.1 The petitioner is a Company engaged in the business of providing financial assistance to various enterprises of Governm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....), (xvi) and (xxii) of sub-section (1) of section 144B of the Act, 1961. It was submitted that as per the Scheme of Faceless Assessment as provided under section 144B of the Act, 1961, draft assessment order is to be provided to the assessee for the proposed addition so as to give an opportunity of hearing. It was submitted that the respondent authority has not provided the opportunity of hearing through video conference as envisaged under section 144B (7) (vii), (viii) and (ix) of the Act, 1961 and therefore, the impugned order is in violation of the principles of natural justice. 6. In support of his submissions, Mr. Shah has relied upon the decision of Bombay High Court in the case of Golden Tobacco Limited v. NFAC and others, rendered in Writ Petition No.1282 of 2021 dated 28.10.2021, Mantra Industries Limited v. National Faceless Assessment Centre (NFAC or NeAC) reported in [2021] 131 TAXMANN.COM 165 (Bombay), decision of this Court in the case of Gandhi Realty (India) Private Limited v. Asst/Jt./Dy./ACIT/ITO rendered in Specail Civil Application No.7662 of 2021 dated 5.10.2021 and decision of this Court in the case of Index India Private Limited v. Addl./Jt./Dy./ACIT/ITO r....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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; xxx (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 time, if any; xxx 144B(7) For the purposes of faceless assessment- xxx (vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng with show cause notice as required under section 144B(1) and section 144B(7) is given to the petitioner so as to enable the petitioner to give explanation for proposed addition during the hearing before the National Faceless Assessment Centre. Section 144B(1)(xii) provides that on receipt of show cause notice, assessee may furnish his response to the National Faceless Assessment Centre and as per clause (xiv), assessment unit shall make a revised draft assessment order after considering the response of the assessee and send it to the National Faceless Assessment Centre. As per the provisions of section 144B(7) in case of variation prejudicial to the assessee as proposed in the draft assessment order, the assessee is entitled to request for personal hearing and upon such request, the personal hearing may be provided by the authority, if the case of the assessee is covered by circumstances provided therein in exercise of powers under sub-clause (h) of clause (xii) of section 144B(7) of the Act, 1961. 12. In view of above, it can be safely be said that the impugned order was passed by the respondent in violation of principles of natural justice without affording an opportunity o....