TaxTMI 
TaxTMI 
2021 (8) TMI 1386
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....144B of the Income Tax Act 1961 (in short "the Act"), concerning assessment year (AY) 2018-2019. 1.1. Besides this, the assessee has also assailed the notice of demand, issued under Section 156 of the Act and the notice issued for initiating penalty proceedings, under Section 270A of the Act, dated 15.04.2021. 2. Notice in this writ petition was issued on 28.05.2021, when operation of the impugned assessment order, dated 15.04.2021, was stayed. 2.1. The principal grievance, which is articulated before us, on behalf of the petitioner, is that, although, the impugned assessment order has varied the taxable income to the detriment of the petitioner, no show cause noticecum-draft assessment order was issued, as was required under the legisla....
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....ide Order F. NO. 187/3/2020-ITA-I dated 31.03.2021, provided "that all Orders, Circulars, Instructions, Guidelines and Communications issued in order to implement the Scheme shall henceforth mutatis mutandis be applicable to the Faceless Assessment under section 144B of the Act, except those specifically modified by issue of fresh Orders/Circulars etc." The said Order shows that the 2019 Scheme, as amended, was incorporated in the 2020 Act. 2.4. Given this backdrop, it would be relevant to note that, the provisions contained in sub-clauses (b) and (c) of clause (xvi) of Section 5(1) of the 2019 Scheme as also the Central Board of Direct Tax (CBDT) Instruction No. 20/2015, dated 29.12.2015, required the revenue to grant an opportunity to th....
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....iate show-cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/reasons forming the basis of the same. Before passing the final order against the proposed additions/disallowances, due consideration shall be given to the submissions made by the assessee in response to the show-cause notice." 2.6. It is also relevant to note that, the aforementioned scheme, i.e., 2019 Scheme [as amended by 2021 Scheme] has been incorporated, substantially, in Section 144B of the Act. 2.7. Therefore, sub-clauses (b) and (c) of clause (xvi) of Section 5(1) of the 2019 Scheme, read with Section 144B(7)(vii)1 of the Act, oblige the revenue, to follow the principles of natural justice, where there is a v....
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....----------------- 1. "144B. Faceless assessment - ** ** ** (7) For the purposes of faceless assessment- ** ** ** (vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment order, and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income-tax authority in any unit;" 2. "7.2 As would be evident, this provision [i.e., Section 144B(7)(v....