Madhuri Sameer Gokhale Vs Addl/Joint/Deputy/ACIT/ITO (Bombay High Court)
Bombay High Court held that department have acted contrary to the SOP under section 144B of the Income Tax Act violating the principles of natural justice. Accordingly, assessment order passed thereon is liable to be quashed.
Facts- This petition is filed under Article 226 of the Constitution of India. The petitioner is primarily aggrieved by the order dated 29 March 2022 passed by the Assessing Officer, National Faceless Assessment Centre, New Delhi u/s. 147 r.w.s. 144 and 144B of the Income Tax Act, 1961 and consequential demand notice dated 30 March 2022 issued u/s. 156 of the IT Act.
The basic issue for consideration revolves around the legality and validity of impugned assessment order dated 29 March 2022 read with the impugned demand notice which according to the petitioner is in violation of mandatory unamended provisions u/s. 144B, read with the first proviso to Section 147 of the IT Act rendering such assessment, ex facie without jurisdiction and a nullity in law.
Conclusion- We now advert to the aspect of the unamended provisions of Section 144B of the IT Act as applicable to the given facts dealing with faceless assessment. The mandatory procedure stipulated under the said statutory provision has been breached by respondent nos.1 and 2. This is in as much as there was no response to the letter dated 14 March 2022 requesting for adjournment of 15 days on bonafide grounds of COVID -19 pandemic prevailing then. The said response was uploaded by the petitioner on the IT portal. However, the petitioner was not given any reply or documents, nor was a fresh hearing notice issued to the petitioner.
