TMI Blog2023 (1) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... deals with the procedure to be adopted by the 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. 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 propos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income declaring total income at Rs.1,97,88,000/-. 3.2) The case of the petitioner was taken under scrutiny assessment under the E-assessment Scheme, 2019 and notice under section 143(2) of the Act was issued. Further notices under section 142(1) of the Act along with detailed questionnaire were also issued. In response to such notices, the petitioner assessee submitted his reply from time to time. 3.3) It is the case of the petitioner that thereafter, vide show cause notice dated 12.05.2021, draft assessment order was issued wherein addition of Rs. 1,17,05,44,981/- was proposed on various grounds. 3.4) Pursuant to the show cause notice, the petitioner submitted a detailed reply dated 25.05.2021 and requested for personal hearing through video conference. 3.5) On 01.09.2021, the Assessing Officer has gave the personal hearing through video conference to the petitioner. 3.6) It is the case of the petitioner that subsequent to the personal hearing, the Assessing Officer made further inquiry and issued notice under section 133(6) to one Kunal Exports and Infrastructure and Gurdas Agro Private Limited on 08.09.2021 and 15.09.2021 asking confirmation of accounts, sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r clause (xxiv) and in case, variation proposed in the revised draft assessment order are prejudicial to the interest of the assessee, opportunity is required to be given to the assessee as per clause (xxv)(b). 4.4) Learned advocate Mr. Vora for the petitioner submitted that the petitioner assessee is not aware regarding issuance of notices under section 133(6) of the Act were issued by the review unit or any other unit as it is an internal departmental working. It was submitted that neither any material nor information of any inquiry made after draft assessment order was made available to assessee any time before the receipt of final assessment order which is in complete violation of provisions of section 144B of the Act. It was submitted that draft assessment order dated 12.05.2021 and final assessment order dated 23.09.2021 are different and in the final assessment order, major thrust for making addition is on the inquiry made after draft assessment order, which was never made available to assessee even when the opportunity is required to be given to the assessee as per express provisions of section 144B of the Act. It was submitted that the assessment order passed without ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the replies given by the petitioner have been given due consideration and incorporated in the assessment order itself. It was further submitted that the issues on which additions were made in the impugned assessment order for Assessment Year 2018-2019 are on the same issues on which additions have been made in Assessment year 2017-2018. 5.3) Learned Senior Advocate Mr. Bhatt submitted that as per the audited accounts of the petitioner, there were unsecured loans amounting to Rs. 68,86,84,206/- and when the petitioner was asked to prove the identity, genuineness and creditworthiness of the creditors, the petitioner instead of providing the above details claimed the amount of Rs. 68,86,84,206/- as Trade payable instead of unsecured loans. It was submitted that after making inquiries by issuing notices under section 142(1) of the Act, the claim of the petitioner was found to be bogus and therefore, addition under section 68 of the Act was proposed in the show cause notice along with Draft Assessment order dated 12.05.2021. 5.4) Learned Senior Advocate Mr. Bhatt submitted that the assessee has efficacious alternative remedy under section 246A of the Act and therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or sum refundable to, the assessee as per his return or making variation to the said income or sum, and send a copy of such order to the National Faceless Assessment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .. as per the procedure prescribed therein. 8.The above-referred clause of section 144B(1) and 144B(7) deals with the procedure to be adopted by the 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. 9.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 Na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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