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TMI Blog2022 (8) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... tional courts in such situations cannot remain indurated. An income tax assessee has been accused of suppressing a source of investment and an assessment order has been passed in gross violation of the principles of natural justice and violating mandatory statutory requirements. He is also threatened with the proposed imposition of penalty under Section 271C of the Income Tax Act, 1961. 2. The 3rd respondent-Income Tax Officer issued Ext.P5 notice dated 30.09.2020 to the petitioner under Section 143(2) read with Section 147 of the Income Tax Act, 1961 seeking to verify the tax liability in respect of Rs.17,50,000/- invested in the firm M/s.Sona Fashion Jewellery during the financial year 2012-'13. The petitioner was required to respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (DAO) preceded Ext.P14, as required under Section 144B of the Income Tax Act, 1961. When the petitioner objected to the very validity of the proceedings as per Exts.P9 and P12, the respondents ought to have passed orders on the objection of the petitioner before passing final orders, as held by the Apex Court in JKN Driveshafts (India) Ltd. v. Income Tax Officer [(2003) 259 ITR 19 (SC)]. 6. I have heard the learned counsel for the petitioner, the learned Assistant Solicitor General of India representing the 1st respondent-Union of India and the learned Standing Counsel for Income Tax Department. 7. The petitioner would contend that when the respondents issued Ext.P4 notice dated 18.03.2020 under Section 148, the petitioner had filed his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontemplates issuance of notices at crucial phases of assessment/reassessment. It contemplates providing opportunity of personal hearing through video conferencing and even preparation of a Draft Assessment Order to which the assessees can submit their objections. 11. To decide the legality of the orders impugned in the writ petition, this Court finds that it would suffice to verify whether the respondents have acted in accordance with Section 144B while issuing Exts.P13, P14 and P14(a) orders. Sub-section 1(xiv) of Section 144B captioned 'Faceless Assessment', reads as follows: (xiv) the assessment unit shall, after taking into account all the relevant material available on the record make in writing, a draft assessment order or, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment Centre, through an automated allocation system, for conducting review of such order. The assessment unit is therefore duty bound to make in writing a Draft Assessment Order and send a copy of such order to the National Faceless Assessment Centre. Where there is a proposal to make any variation which is prejudicial to the interest of the assessee, Section 144B contemplates forwarding of Draft Assessment Order to the assessee. 12. If any proposal for variation prejudicial to the interest of the assessee is made, Section 144B(1)(xvi)(b) mandates that the National Faceless Assessment Centre has to provide an opportunity to the assessee by serving a notice calling upon the assessee to show-cause as to why the proposed variation should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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