9911796707
TMI Blog2023 (1) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... writ in the nature of certiorari or any other appropriate writ, direction or order and be pleased to : (a) quash and set aside the impugned order dated 18.08.2021 at Annexure-'A' to this petition; (b) pending the admission, hearing and final disposal of this petition, to stay implementation and operation of the order at Annexure- 'A' to this petition, notice of penalty at Annexure 'I' to this petition and stay recovery of tax for A.Y.2018-19; (c) any other and further relief deemed just and proper be granted in the interest of justice; (d) to provide for the cost of this petition." 3. In response to the notice issued by this Court, the respondent has filed affidavit-in-reply dated 16.06.2022. 4. Brief facts of the case are as under :- 4.1 The petitioner, a cooperative credit society, registered under Gujarat Co-operative Society Act engaged in business of providing credit facilities to its members, filed its return of income for AY 2018-19 on 23.09.2018 offering Nil income after claiming deduction of Rs.2,79,77,018/- under 80P of the Income Tax Act, 1961 (hereinafter referred to as 'the Act, 1961'). 4.2 The case of the petitioner was selected for scrutin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived the impugned Assessment order dated 18.08.2021 without providing the desired video conference. In the said assessment order, nothing is mentioned about letters dated 02.08.2021 or 06.08.2021 or the request for Video Conference. Thereafter, Show Cause Notice under section 270A of the Income-Tax Act was issued on 26/08/2021 to initiate penalty proceedings against the petitioner. Hence this petition. 5. Learned advocate Mr.B.S.Soparkar appearing for the petitioner submitted that the impugned Show Cause Notice under section 270A of the Act, 1961 is in violation of mandatory provisions of clauses (xiv), (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 justic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Centre; (xv) the assessment unit shall, while making draft assessment order, provide details of the penalty proceedings to be initiated 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; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... National Faceless Assessment Centre on receipt of draft order from the assessment unit who has prepared the draft after providing opportunity to the assessee by serving a notice upon him to show cause as to why the assessment should not be completed as per such draft or final draft or revised draft assessment order. Therefore, such personal hearing in era of Faceless assessment is to be provided through video conferencing. 11. It is not in dispute that in facts of the case no draft assessment along 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 dr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
