AI Drafter 
TaxTMI 
TaxTMI 
2025 (2) TMI 547
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....heard be set aside and quashed. (ii) For granting and other relief(s) to which the petitioner is otherwise found entitled to." 2. Petitioner is an individual engaged in the business of trade of fish on a fixed commission basis. He is entrusted with the unloading and sale of fish on a truck load basis on a fixed commission of Rs.1500 per truck. The fishes are imported from the State of Andhra Pradesh and other coastal States outside the State of Bihar by the wholesale dealers. The petitioner deposits the sale proceeds in his bank account and remits the same to the wholesale dealers mostly in the State of Andhra Pradesh and other coastal areas through bank transfers. 3. It is the case of the petitioner that he filed a return for the assessment year 2014-15 with the help of local advocate estimating his income of commission on sale of fish on a commission basis at Rs.2,35,000/-. It is his plea that he is an illiterate person and has practically no understanding of the website of the Income Tax Department. He was not able to know all the proceedings in progress leading to an ex-parte order of assessment. He came to know about this fact only after the bank intimated him i....
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....rategy specified by the Board including by way of an automatic examination tool and then again provide an opportunity to the assessee in case any variation prejudicial to the interest, is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made or assign the draft assessment order to review unit in any one Regional Faceless Assessment Centre through an automated allocation system for conducting review of such order. 9. It is his submission that the respondents made an exparte assessment without due compliance with the specified procedure enumerated in Section 144B of the Act of 1961. In his submissions, the impugned order is without jurisdiction. 10. Learned senior counsel for the petitioner has heavily relied upon the judgment of the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. Vs. Income Tax Officer, Companies District-1, Calcutta and Another reported in (1961) 41 ITR 191. In the said case, the Hon'ble Supreme Court has held that if the conditions precedent for issue of a notice under Section 34 do not exist, the jurisdiction of the High Court to issue high prerogative writs under Article 226 of the ....
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....2/- in two bank accounts, namely Rs.55,81,967/- in A/c No.133001502345 and Rs.1,24,66,445/- in A/c No.133005500409 maintained with ICICI bank. However, the assessee had shown gross receipt of Rs.38,29,506/- only in the ITR, therefore, the balance cash deposits of Rs.1,42,18,906/- remained unexplained. 14. It is stated that since cash of Rs.1,42,18,906/- remained as unexplained money under Section 69A of the Act of 1961, it was required to be added back to the total income. Accordingly, after approval from the Principal Commissioner of Income Tax-1, Patna, notice under Section 148 of the Act of 1961 was issued on 30.03.2021. It is stated that a notice under Section 142(1) of the Act of 1961 was issued on 04.08.2021 through JAO but the assessee did not make any compliance. Later, on 11.11.2021, the case was transferred to the Faceless Assessment Unit for completion of assessment proceeding as per provisions of Section 144B of the Act of 1961. Thereafter, notice under Section 142(1) of the Act of 1961 was issued to the assessee through 'NAFC' on 15.11.2021 but the assessee did not make any compliance. Again a notice under Section 142(1) of the Act of 1961 was issued on 06.12.2021 b....
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....f Vs. Union of India & Ors.). 18. It is submitted that in the case of GKN Driveshafts (India) Ltd. (supra), the Hon'ble Supreme Court refused to interfere with the order under challenge and clarified that when a notice under Section 148 of the Act of 1961 is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the AO is bound to dispose of the same by passing a speaking order. 19. In the case of Venky Steels Pvt. Ltd. (supra), the learned coordinate bench of this Court considered the Commissioner's approval and rejected the contention of the petitioner that the approval is mechanical and does not disclose any reason. The learned coordinate Bench has also gone through the judgments of the Hon'ble Delhi High Court in Principal Commissioner of Income Tax Vs. N.C. Cables Ltd.; (2017) 391 ITR 11 (Del) and Principal Commissioner of Income Tax vs. Pioneer Town Planners Pvt. Ltd.; (2024) 465 ITR 356 (Del). The learned coordinate Bench further went through the....
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....e previous year corresponding to the relevant assessment year. Proviso to Section 148 states that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment assessment year. Section 148A lays down procedures before issuance of notice under Section 148. 22. According to Section 151, the specific authority for the purposes of sections 148 and 148A shall be the Additional Commissioner or the Additional Director or the Joint Commissioner or the Joint Director, as the case may be. Section 151A says that the Central Government may make a scheme, by notification in the Official Gazette, for the purposes of assessment, reassessment or re-computation under section 147 or issuance of notice under section 148 or conducting of enquiries or issuance of show-cause notice or passing of order under section 148A or sanction for issue of such notice under section 151, so as to impart greater efficiency, transparency and accountability by- (a) eliminating the interface between the income-tax authority and the assessee o....
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....ce the assessee has not filed any return of income till date. Annexure-P4 is a draft order of assessment made under Section 144 read with Section 148 of the Act of 1961. The petitioner was called upon to submit his objection, if any, to the office within three days of the receipt of the draft order. It is specifically stated therein that in case no response is received by the given date and time the assessment would be finalised as per the draft assessment order. 25. It is not questioned that the draft assessment order was duly served upon the petitioner. In fact, Mr. Pathy, learned senior counsel does not dispute that the draft order was sent on the registered e-mail of the petitioner. 26. In the aforementioned background, the assessment order (Annexure-P5) has been issued. 27. In the assessment order, the learned officer of the Department in 'NFAC' has held that the assessed income of Rs.1,78,68,410/- for the assessment year 2014-15 under Section 144 read with Section 147 read with Section 144B of the Act of 1961. It is because of the mention of Section 144B of the Act of 1961, Mr. Pathy, learned senior counsel for the petitioner has submitted that the procedures as pres....
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....ed to the assessment unit, it may make a request to the National Faceless Assessment Centre for- (a) obtaining such further information, documents or evidence from the asses-see or any other person, as it may specify; (b) conducting of certain enquiry or verification by verification unit; and (c) seeking technical assistance from the technical unit; (vi) where a request for obtaining further information, documents or evidence from the assessee or any other person has been made by the assessment unit, the National Faceless Assessment Centre shall issue appropriate notice or requisition to the assessee or any other person for obtaining the information, documents or evidence requisitioned by the assessment unit; (vii) the assessee or any other person, as the case may be, shall file his response to the notice referred to in clause (vi), within the time specified therein or such time as may be extended on the basis of an application in this regard, to the National Faceless Assessment Centre; (viii) where a request for conducting of certain enquiry or verification by the verification unit has been made by the assessment unit, the requ....
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....ted therein, if any; (xvi) the National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the Board, including by way of an automated 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, (xvii) the review unit shall conduct review of the draft assessment order referred to it by the National Fac....
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....on the basis of such assessment; (b) in any other case, send the response received from the assessee to the assessment unit; (xxiv) the assessment unit shall, after taking into account the response furnished by the assessee, make a revised draft assessment order and send it to the National Faceless Assessment Centre; (xxv) the National Faceless Assessment Centre shall, upon receiving the revised draft assessment order,- (a) in case the variations proposed in the revised draft assessment order are not prejudicial to the interest of the assessee in comparison to the draft assessment order or the final draft assessment order, and- (A) in case the revised draft assessment order is in respect of an eligible assessee and there is any variation prejudicial to the interest of the assessee proposed in draft assessment order or the final draft assessment order, forward the said revised draft assessment order to such assessee; (B) in any other case, finalise the assessment as per the revised draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand not....
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....ment within the time allowed under subsection (13) of section 144C and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; (xxxii) the National Faceless Assessment Centre shall, after completion of assessment, transfer all the electronic records of the case to the Assessing Officer having jurisdiction over the said case for such action as may be required under the Act. (2) The faceless assessment under sub-section (1) shall be made in respect of such territorial area, or persons or class of persons, or incomes or class of incomes, or cases or class of cases, as may be specified by the Board. (3) The Board may, for the purposes of faceless assessment, set up the following Centres and units and specify their respective jurisdiction, namely:- (i) a National Faceless Assessment Centre to facilitate the conduct of faceless assessment proceedings in a centralised manner, which shall be vested with the jurisdiction to make faceless assessment; (ii) Regional Facel....
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....ely:- (a) Additional Commissioner or Additional Director or Joint Commissioner or Joint Director, as the case may be; (b) Deputy Commissioner or Deputy Director or Assistant Commissioner or Assistant Director, or Income-tax Officer, as the case may be; (c) such other income-tax authority, ministerial staff, executive or consultant, as considered necessary by the Board. (5) All communication among the assessment unit, review unit, verification unit or technical unit or with the assessee or any other person with respect to the information or documents or evidence or any other details, as may be necessary for the purposes of making a faceless assessment shall be through the National Faceless Assessment Centre, (6) All communications between the National Faceless Assessment Centre and the assessee, or his authorised representative, or any other person shall be exchanged exclusively by electronic mode; and all internal communications between the National Faceless Assessment Centre, Regional Faceless Assessment Centres and various units shall be exchanged exclusively by electronic mode: Provided that the provisions of this sub-section shall no....
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....ovided 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: (viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, under which the concerned unit is set up, may approve the request for personal hearing referred to in clause (vi) if he is of the opinion that the request is covered by the circumstances referred to in sub-clause (h) of clause (xii) (ix) where the request for personal hearing has been approved by the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, such hearing shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board; (x) sub....