Saurabh Rohitbhai Modi HUF Vs Addl/Joint/DY./ACIT/ITO National Faceless Assessment Centre or His Successor & Anr. (Gujarat High Court)
Gujarat High Court held that addition without issuance of any show cause notice or the draft assessment order is not sustainable since the same is blatant violation of the mandatory procedure prescribed under the Faceless Assessment Scheme as stipulated u/s.144B of the Income Tax Act.
Facts- The Petitioner is an individual and the Karta of HUF. The return of the petitioner was processed u/s 143(1). Later on, the Respondent initiated reassessment proceedings u/s 147 by issuing notice u/s 148 on 31.03.2021 on the basis of information that during the course of search u/s 132 on 17.08.2016 in the case of K- Star group at Surat, various incriminating documents were found which showed that the said group had purchased Block No.247 for Rs. 63,50,000/- and Block no. 243 for Rs. 5,60,00,000/- (which was held by Rohit C Modi HUF jointly with Smt. Poonam R. Modi).
During the course of assessment proceedings, the Respondent issued a notice u/s 143(2) r.w.s. 147 dated 21.05.2021 providing a “Gist” of reasons recorded for reopening which alleged that the provisions of Section 50C were attracted to both the transactions relating to the lands at Block no. 243 & 247, as a result of which income of Rs.3,43,50,000/- had escaped assessment.
