9911796707
TMI Blog2025 (2) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... granting and other relief(s) to which the petitioner is otherwise found entitled to." 2. Petitioner is an individual engaged in the business of trade of fish on a fixed commission basis. He is entrusted with the unloading and sale of fish on a truck load basis on a fixed commission of Rs.1500 per truck. The fishes are imported from the State of Andhra Pradesh and other coastal States outside the State of Bihar by the wholesale dealers. The petitioner deposits the sale proceeds in his bank account and remits the same to the wholesale dealers mostly in the State of Andhra Pradesh and other coastal areas through bank transfers. 3. It is the case of the petitioner that he filed a return for the assessment year 2014-15 with the help of local advocate estimating his income of commission on sale of fish on a commission basis at Rs.2,35,000/-. It is his plea that he is an illiterate person and has practically no understanding of the website of the Income Tax Department. He was not able to know all the proceedings in progress leading to an ex-parte order of assessment. He came to know about this fact only after the bank intimated him in July last week about the notice of attachment under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamination tool and then again provide an opportunity to the assessee in case any variation prejudicial to the interest, is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made or assign the draft assessment order to review unit in any one Regional Faceless Assessment Centre through an automated allocation system for conducting review of such order. 9. It is his submission that the respondents made an exparte assessment without due compliance with the specified procedure enumerated in Section 144B of the Act of 1961. In his submissions, the impugned order is without jurisdiction. 10. Learned senior counsel for the petitioner has heavily relied upon the judgment of the Hon'ble Supreme Court in the case of Calcutta Discount Co. Ltd. Vs. Income Tax Officer, Companies District-1, Calcutta and Another reported in (1961) 41 ITR 191. In the said case, the Hon'ble Supreme Court has held that if the conditions precedent for issue of a notice under Section 34 do not exist, the jurisdiction of the High Court to issue high prerogative writs under Article 226 of the Constitution to prohibit action under the notice may be exercised. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,24,66,445/- in A/c No.133005500409 maintained with ICICI bank. However, the assessee had shown gross receipt of Rs.38,29,506/- only in the ITR, therefore, the balance cash deposits of Rs.1,42,18,906/- remained unexplained. 14. It is stated that since cash of Rs.1,42,18,906/- remained as unexplained money under Section 69A of the Act of 1961, it was required to be added back to the total income. Accordingly, after approval from the Principal Commissioner of Income Tax-1, Patna, notice under Section 148 of the Act of 1961 was issued on 30.03.2021. It is stated that a notice under Section 142(1) of the Act of 1961 was issued on 04.08.2021 through JAO but the assessee did not make any compliance. Later, on 11.11.2021, the case was transferred to the Faceless Assessment Unit for completion of assessment proceeding as per provisions of Section 144B of the Act of 1961. Thereafter, notice under Section 142(1) of the Act of 1961 was issued to the assessee through 'NAFC' on 15.11.2021 but the assessee did not make any compliance. Again a notice under Section 142(1) of the Act of 1961 was issued on 06.12.2021 but the assessee failed to make any compliance. Since the assessee was not mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supra), the Hon'ble Supreme Court refused to interfere with the order under challenge and clarified that when a notice under Section 148 of the Act of 1961 is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The AO is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the AO is bound to dispose of the same by passing a speaking order. 19. In the case of Venky Steels Pvt. Ltd. (supra), the learned coordinate bench of this Court considered the Commissioner's approval and rejected the contention of the petitioner that the approval is mechanical and does not disclose any reason. The learned coordinate Bench has also gone through the judgments of the Hon'ble Delhi High Court in Principal Commissioner of Income Tax Vs. N.C. Cables Ltd.; (2017) 391 ITR 11 (Del) and Principal Commissioner of Income Tax vs. Pioneer Town Planners Pvt. Ltd.; (2024) 465 ITR 356 (Del). The learned coordinate Bench further went through the judgment of the Hon'ble Supreme Court in the case of Chhugamal Rajpal Vs. S.P. Chaliha and Other; (1971) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment assessment year. Section 148A lays down procedures before issuance of notice under Section 148. 22. According to Section 151, the specific authority for the purposes of sections 148 and 148A shall be the Additional Commissioner or the Additional Director or the Joint Commissioner or the Joint Director, as the case may be. Section 151A says that the Central Government may make a scheme, by notification in the Official Gazette, for the purposes of assessment, reassessment or re-computation under section 147 or issuance of notice under section 148 or conducting of enquiries or issuance of show-cause notice or passing of order under section 148A or sanction for issue of such notice under section 151, so as to impart greater efficiency, transparency and accountability by- (a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible; (b) optimising utilisation of the resources through economie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act of 1961. The petitioner was called upon to submit his objection, if any, to the office within three days of the receipt of the draft order. It is specifically stated therein that in case no response is received by the given date and time the assessment would be finalised as per the draft assessment order. 25. It is not questioned that the draft assessment order was duly served upon the petitioner. In fact, Mr. Pathy, learned senior counsel does not dispute that the draft order was sent on the registered e-mail of the petitioner. 26. In the aforementioned background, the assessment order (Annexure-P5) has been issued. 27. In the assessment order, the learned officer of the Department in 'NFAC' has held that the assessed income of Rs.1,78,68,410/- for the assessment year 2014-15 under Section 144 read with Section 147 read with Section 144B of the Act of 1961. It is because of the mention of Section 144B of the Act of 1961, Mr. Pathy, learned senior counsel for the petitioner has submitted that the procedures as prescribed under Section 144B was required to be followed and according to him it has not been followed. 28. In order to contest the submissions of Mr. Pathy, Ms. Arc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) conducting of certain enquiry or verification by verification unit; and (c) seeking technical assistance from the technical unit; (vi) where a request for obtaining further information, documents or evidence from the assessee or any other person has been made by the assessment unit, the National Faceless Assessment Centre shall issue appropriate notice or requisition to the assessee or any other person for obtaining the information, documents or evidence requisitioned by the assessment unit; (vii) the assessee or any other person, as the case may be, shall file his response to the notice referred to in clause (vi), within the time specified therein or such time as may be extended on the basis of an application in this regard, to the National Faceless Assessment Centre; (viii) where a request for conducting of certain enquiry or verification by the verification unit has been made by the assessment unit, the request shall be assigned by the National Faceless Assessment Centre to a verification unit in any one Regional Faceless Assessment Centre through an automated allocation system; (ix) where a request for seeking technical assistance from the technical unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase 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, (xvii) the review unit shall conduct review of the draft assessment order referred to it by the National Faceless Assessment Centre whereupon it may decide to- (a) concur with the draft assessment order and intimate the National Faceless Assessment Centre about such concurrence; or (b) suggest such variation, as it may deem fit, in the draft assessment order and send its suggestions to the National Faceless Assessment Centre; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order,- (a) in case the variations proposed in the revised draft assessment order are not prejudicial to the interest of the assessee in comparison to the draft assessment order or the final draft assessment order, and- (A) in case the revised draft assessment order is in respect of an eligible assessee and there is any variation prejudicial to the interest of the assessee proposed in draft assessment order or the final draft assessment order, forward the said revised draft assessment order to such assessee; (B) in any other case, finalise the assessment as per the revised draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; (b) in case the variations proposed in the revised draft assessment order are prejudicial to the interest of the assessee in comparison to the draft assess ment order or the final draft assessment order, provide an opportunity to the assessee, by serving a notice calling upon him to showcause as to why the proposed variation should not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said case for such action as may be required under the Act. (2) The faceless assessment under sub-section (1) shall be made in respect of such territorial area, or persons or class of persons, or incomes or class of incomes, or cases or class of cases, as may be specified by the Board. (3) The Board may, for the purposes of faceless assessment, set up the following Centres and units and specify their respective jurisdiction, namely:- (i) a National Faceless Assessment Centre to facilitate the conduct of faceless assessment proceedings in a centralised manner, which shall be vested with the jurisdiction to make faceless assessment; (ii) Regional Faceless Assessment Centres, as it may deem necessary, to facilitate the conduct of faceless assessment proceedings in the cadre controlling region of a Principal Chief Commissioner, which shall be vested with the jurisdiction to make faceless assessment; (iii) assessment units, as it may deem necessary to facilitate the conduct of faceless assessment, to perform the function of making assessment, which includes identification of points or issues material for the determination of any liability (including refund) under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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, (6) 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: Provided that the provisions of this sub-section shall not apply to the enquiry or verification conducted by the verification unit in the circumstances referred to in sub clause (g) of clause (xii) of sub-section (7); (7) For the purposes of faceless assessment- (i) an electronic record shall be authenticated by- (a) the National Faceless Assessment Centre by affixing its digital signature. (b) assessee or any other person, by affixing his digital signature if he is required to furnish his return of income under digital signature, and in any other case by affixing his digital signature or under electronic verification code ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the circumstances referred to in sub-clause (h) of clause (xii) (ix) where the request for personal hearing has been approved by the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, such hearing shall be conducted exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board; (x) subject to the proviso to sub-section (6), any examination or recording of the statement of the assessee or any other person (other than statement recorded in the course of survey under section 133A of the Act) shall be conducted by an income-tax authority in any unit, exclusively through video conferencing or video telephony, including use of any telecommunication application software which sup-ports video conferencing or video telephony in accordance with the procedure laid down by the Board; (xi) the Board shall establish suitable facilities for video conferencing or video telephony including telecommunication application software which supports video conferencing or vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s produced the records and has taken us through the records flagged. 30. A perusal of the documents would show that in the proposal for scrutiny, reasons for selection are duly recorded. The Range Head and CIT/PCIT have also stated in their approval order that they are satisfied with the reasons recorded by the assessing officer and it is a fit case for issuing notice under Section 148. We, therefore, find that there is a due approval under Section 151 of the Act of 1961. 31. On perusal of the details as available in the computersheet of order detail, we find that in course of faceless assessment at every stage approval from competent authorities have been obtained. Prima-facie, we do not find it a case of jurisdictional error, hence this Court would refrain from exercising it's extraordinary writ jurisdiction in the present case. 32. The petitioner has already chosen to avail alternative remedy in respect of the assessment year 2013-14. If so advised, he may avail the remedy of appeal, subject, however, to the limitation. While considering any application for condonation of delay, the period spent by the petitioner before this Court in the present writ application shall be liab ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
