Case Law Details
Aravali Shikshan Avum Anusandhan Sansthan Vs National E-Assessment Centre & Others (Rajasthan High Court)
Aravali Shikshan Avum Anusandhan Sansthan (“the Petitioner”), has filed the current writ petition against the order passed by the National Faceless Assessment Center under Section 144-B along with Section 143(3) of the Income Tax Act, 1961 (“the IT Act”) imposing Additional Demand and well as Penalty under Section 270 A of the IT Act.
The Petitioner contends that in order to bring the case under Section 144-B, a draft assessment as well as a Show Cause Notice (“SCN”) is to be served. However, none of the mentioned requirements were met and no opportunity of hearing was provided to the Petitioner for the same.
The Hon’ble High Court of Rajasthan, the bench of Jaipur observed “Taking into consideration the assessment order dated 21.04.2021, the contentions of learned counsel for the petitioner prima facie appears to be correct accordingly. In the meanwhile, the effect and operation of the assessment order dated 21.04.2021 shall remain stayed.”
Further, issued the notice to National E-Assessment Centre (“the Respondent”) following a stay application to be returnable within 6 weeks.
FULL TEXT OF THE HIGH COURT JUDGMENT/ORDER
Learned counsel for the petitioner submits that in terms of Section 144-B added to the statute w.e.f. 01.04.2021, the National Faceless Assessment Center was required to provide an opportunity of hearing after draft assessment is prepared, however, learned counsel submits that neither the draft assessment provided under Section 144-B was prepared nor Show Cause Notice was given by the National Faceless Assessment Center for providing an opportunity and directly an order has been issued under Section 144-B read with Section 143(3) of the Act imposing an additional demand of Rs.1,09,15,600/- and issued penalty notice under Section 270-A of the Act.
Issue notice of the writ petition as well as stay application, returnable within six weeks.
Taking into consideration the assessment order dated 21.04.2021 (Annexure-9), the contentions of learned counsel for the petitioner prima facie appears to be correct accordingly. In the meanwhile, the effect and operation of the assessment order dated 21.04.2021 shall remain stayed.
(Author can be reached at info@a2ztaxcorp.com)
Author Bio
