TMI Blog2023 (2) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... In the instant case, the action of the respondent being in clear breach of requisite necessity of availing an opportunity to the petitioner on serving upon it the show cause noticecum- draft assessment order, the assessment order which has been finalized, deserves interference. Jurisdictional issue raised by respondent on the ground that the PAN of the petitioner is at Churu, Rajasthan - A communication is made by the Income Tax Officer, Ward-1, Churu addressed to the Principle Commissioner of Income Tax, Jaipur-2, Rajasthan for transfer of PAN from ITO, Ward-1, Churu to DCIT, Circle-3(3), Pratyaksha Kar Bhavan, Ambawadi, Ahmedabad, wherein it is stated that request letter has been received from the assessee firm for transfer of its PAN ABFFA6446E from ITO, Ward-1, Churu to DCIT, Circle-3(3), Pratyaksha Kar Bhavan, Ambawadi, Ahmedabad. The officer further has stated that he has no objection to such transfer. The assessee firm was incorporated on 06.07.2016 and as per the record, neither the assessee firm nor any of the partners of the assessee firm has any link with the territorial jurisdiction of Ward-1, Churu. Request was made to pass necessary order under Section 127 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.1. The petitioner is in the business of real estate development and has filed its return of income on 13.09.2018 offering Rs. 64,68,084/- as tax on income. 1.2. Its case was selected for the scrutiny and a notice dated 22.09.2019 under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) read with Rule 12E of the Income Tax Rules, 1962 (hereinafter referred to as the Rules ) was issued. The respondent, on 14.10.2020 issued a communication to the petitioner that the assessment shall be completed in accordance with the Faceless Assessment Scheme, 2019. 1.3. On 07.11.2020, notice in the form of questionnaire came to be issued under Section 142(1) of the Act requesting the petitioner to submit various details in the annexure appended to the notice. A further reminder was addressed to the petitioner on 18.12.2020 by giving reference of the notice dated 17.11.2020. The petitioner, on 25.12.2020, attempted to send all the details which were sought. Further details were called for on 29.12.2020. 1.4. It is averred that before the petitioner could submit the details sought for, the respondent on 06.02.2021 straightway passed the order of assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding before the Commissioner of Income Tax (Appeals). 2. We have heard the learned advocate, Mr.B.S.Soparkar appearing for the petitioner and learned senior standing counsel, Ms.Mauna Bhatt appearing for the department on the interim relief which has been pressed into service. We have taken into consideration the Notification dated 12.09.2019, which speaks of EAssessment Scheme, 2019 as well as the Notification dated 13.08.2020 in relation to the E-Assessment Scheme so also Section 144 B of the Income Tax Act, 1961. The assessment of the petitioner was completed in accordance with the Faceless Assessment Scheme, 2019 and the questionnaire had been issued on 17.11.2020 which had been submitted by the petitioner. A further reminder was also addressed on 18.12.2020 and eventually the Assessment Order has been passed on 06.02.2021, which according to the petitioner, is without issuance of show cause notice cum draft order for making an addition of Rs.1,18,87,449/-. 3. Noticing the Scheme of 2019 and 2020 since the order of assessment is of 06.02.2021 and provision of Section 144 B of the Income Tax Act has come into effect from 01.04.2021, we deem it appropriate to protect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortal, the assessee can only see those communications that are sent by the National Faceless Assessment Centre. 5. We have heard extensively learned advocate Mr. B.S.Soparkar appearing for the petitioner and learned Senior Standing Counsel Mrs. Kalpana Raval assisted by learned Standing Counsel Mr. Karan Sanghani for the respondent authority. 6. Firstly, the notification issued by the Central Board of Direct Taxes on 13.08.2020 in exercise of the powers conferred by sub-section (3A) of Section 143 of the Act issued by the Central Government is perused, wherein the e- Assessment Scheme, 2019 published vide notification of the Government of India, Ministry of Finance (Department of Revenue), Central Board of Direct Taxes prescribes for procedure for assessment at para 5. The assessment, under the Scheme, is to be as per the following procedure:- 5. Procedure for assessment. - (1) The assessment under this Scheme shall be made as per the following procedure, namely: - (i) the National e-Assessment Centre shall serve a notice on the assessee under sub-section (2) of section 143, specifying the issues for selection of his case for assessment; (ii) the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the National e-assessment Centre to a verification unit in any one Regional e-assessment Centres through an automated allocation system; (ix) where a request for seeking technical assistance from the technical unit has been made by the assessment unit, the request shall be assigned by the National e-assessment Centre to a technical unit in any one Regional e-assessment Centres through an automated allocation system; (x) the National e-assessment Centre shall send the report received from the verification unit or the technical unit, based on the request referred to in clause (viii) or (ix) to the concerned assessment unit; (xi) where the assessee fails to comply with the notice referred to in clause (vi) or notice issued under subsection (1) of section 142 or with a direction issued under sub-section (2A) of section 142, the National e-Assessment Centre shall serve upon such assessee a notice under section 144 giving him an opportunity to show-cause, on a date and time to be specified in the notice, why the assessment in his case should not be completed to the best of its judgment; (xii) the assessee shall, within the time specified in the notice referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the draft assessment order and send its suggestions to the National e-assessment Centre; (xviii) the National e-assessment Centre shall, upon receiving concurrence of the review unit, follow the procedure laid down in sub-clause (a) or sub-clause (b) of clause (xvi), as the case may be; (xix) the National e-assessment Centre shall, upon receiving suggestions for modifications from the review unit, assign the case to an assessment unit, other than the assessment unit which has made the draft assessment order, through an automated allocation system; (xx) the assessment unit shall, after considering the modifications suggested by the review unit, send the final draft assessment order to the National e-assessment Centre; (xxi) The National e-assessment Centre shall, upon receiving final draft assessment order, follow the procedure laid down in sub-clause (a) or sub-clause (b) of clause (xvi), as the case may be; (xxii) the assessee may, in a case where show-cause notice under sub-clause (b) of clause (xvi) has been served upon him, furnish his response to the National e-assessment Centre on or before the date and time specified in the notice or within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writing a draft assessment order or, in a case where the intimation referred to in clause (xiii) is received from the National e-Assessment Centre, make in writing a draft assessment order to the best of its judgment, either accepting the income, or some payable, or refundable, and send a copy of such order to the National e-Assessment Centre. The assessment unit shall, while making the draft assessment order, provide the details of penalty proceedings to be initiated. 6.2. The National e-Assessment Centre also is required to 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 finalize the assessment as per the draft assessment order and serve a copy of such order and notice for intimating penalty proceedings, if any, to the assessee, along with the demand notice specifying the sum payable by, or refund of any amount. It is also required to provide an opportunity to the assessee in case a modification is proposed by serving the notice calling upon him to show cause as to why the assessment should not be completed as per the draft assessment order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 144B, which provide that all communications 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 and 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. The proviso would not be necessary to be discussed at this stage which concerns inquiry or verification conducted by the verification unit. 14. Sub-sections (7) of section 144B provides that for the purposes of faceless assessment an electronic record shall be authenticated by the National Faceless Assessment Centre by affixing its digital signature and by assessee or any other person, by affixing if required his digital signature if he is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been duly served to the petitioner, show cause notice which is claimed to have been issued along with the draft assessment order are surely missing. This being a simple case of statutory non-compliance of the provision, the same would amount to breach of not only principles of natural justice, but also, of the action in complete disregard to the statutory provision. And therefore, the order of the respondent passed without following the mandate given by the statute under section 144B of the Act deserves to be interfered with by quashing and setting aside the same. 18. In view of the foregoing reasons, we quash the impugned assessment order 20.04.2021 so also the notice of demand issued by the respondent authority and any other proceedings initiated pursuant to the said. 19. However, we direct that the respondent/revenue will be at liberty to proceed with the assessment process under the provisions of Section 144B of the Act, as permissible under the law obviously after issuance of the prior notice-cum-draft assessment order and on availing an opportunity to the petitioner. The petitioner shall file response and the objection to the same. Opportunity of hearing if is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ward-1, Churu to DCIT, Circle-3(3), Pratyaksha Kar Bhavan, Ambawadi, Ahmedabad. The officer further has stated that he has no objection to such transfer. The assessee firm was incorporated on 06.07.2016 and as per the record, neither the assessee firm nor any of the partners of the assessee firm has any link with the territorial jurisdiction of Ward-1, Churu. Request was made to pass necessary order under Section 127 of the Act urging for appropriate territorial jurisdiction of the assessee i.e. DCIT, Circle-3(3), Pratyaksha Kar Bhavan, Ambawadi, Ahmedabad. 12.2. Not only the petitioner is residing in Ahmedabad, but, he continues to do its business and operates from the State of Gujarat. For whatever reasons its PAN ABFFA6446E is with ITO, Ward-1 Churu, he already has made a request in the month of November, 2021 for the transfer with a further request that necessary directions to be issued for long term effect of this. 13. Learned advocate Mr. Soparkar has emphatically urged that there is no way in which the petitioner has contributed to the matter going on before the ITO, Ward-1, Churu. He has no connection with Rajasthan and therefore, he has made an application before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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