2025 (8) TMI 60

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.... of the Income Tax Act, 1961 ["the Act" for short]. Pursuant to the same, various notices were issued to the Petitioner by the Assessment Unit, National Faceless Assessment Centre (NFAC), the 2nd Respondent herein. To these notices, replies alongwith relevant documents, were filed by the Petitioner from time to time. 3. Thereafter, the NFAC issued a Final Show Cause Notice dated 21.02.2025 proposing variation to the income as returned by the Petitioner. The Petitioner was required to file a reply to this notice by 28.02.2025. According to the Petitioner, since various and voluminous details were to be furnished in response to the said Notice dated 21.02.2025, it sought an extension of time to furnish the same. Resultantly an online request....

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..... It is submitted by him, that admittedly, a response along with all relevant documents and submissions was furnished by the Petitioner and within the time granted by the 2nd Respondent as per submissions uploaded on 04.03.2025 [Exhibit K1] and therefore the Petitioner had not accepted the proposed variation as incorrectly stated in the order. Further, it was incumbent upon the 2nd Respondent, NFAC to consider the response uploaded by the Petitioner before passing any order adverse to the Petitioner; (b) this non-consideration of the reply of the Petitioner, apart from being in violation of the principles of natural justice, is also in violation of Section 144B(10)(xv) of the Act which mandates that the NFAC must consider the reply furni....

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....Petitioner has an alternative remedy available and he could have pursued the same. She however fairly stated that if this Court is inclined to allow the Petition then the present Assessment be remanded back to the stage of the Show Cause Notice dated 21.02.2025 and the Faceless Assessing Officer, NFAC [the 2nd Respondent herein] be allowed to consider the reply as well as the request for a personal hearing as asked for by the Petitioner. CONCLUSION: 6. We have considered the material on record and the submissions of the parties. Admittedly, in the present case, the Petitioner furnished its reply on 04.03.2025, to the final Show Cause Notice dated 21.02.2025 which is within the time granted by the 2nd Respondent himself on 28.02.2025. Ther....

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....ically held that grant of a personal hearing is mandatory in terms of Section 143 (3) of the Act. The relevant portion of this decision reads thus:- "29: .... The contents of paragraph 3 of the said Show Cause Notice-cum-draft Assessment Order are to be construed in the light of the clear legislative intent in Section 143 (3) of the IT Act. In other words, the requirement of hearing the assessee being categorically provided for in the above statutory provision, the same ought to be followed in letter and sprit. Thus, on a proper reading and interpretation of Section 143(3) of the IT Act, one cannot by-pass such statutory mandate of granting an opportunity of hearing the assessee which is required to be followed before passing the assessme....