Faceless Assessment Quashed for Ignoring Adjournment Request: Bombay HC

Jitendra Jamnadas Ashar Vs Additional/Joint/Deputy/ACIT/ITO & Ors. (Bombay High Court)

Summary: Faceless assessment set aside for denial of effective opportunity of hearing where the assessee’s request for additional time was not decided and subsequently uploaded documents were not considered; assessment restored to the show-cause-notice stage for fresh adjudication.

Core Issue

Whether a faceless assessment completed under sections 143(3) read with 144B of the Income-tax Act, 1961, along with consequential penalty notices, could be sustained when the assessee was effectively given only four working days to respond to the show-cause notice, his request for 15 days’ additional time was neither accepted nor rejected, and the detailed response and documents subsequently uploaded on the Department’s e-portal were not considered before the assessment order was passed.

Facts

The assessee was subjected to assessment proceedings for AY 2024-25 and had complied with various notices issued under section 142(1). Thereafter, a show-cause notice dated 17 February 2026 was issued proposing certain variations and requiring a response by 24 February 2026. Although the notice formally provided several calendar days, the assessee effectively had only four working days because 19 February 2026 was a public holiday and 21 and 22 February 2026 were Saturday and Sunday. On 24 February 2026, the assessee submitted part details and requested an additional 15 days to collect and furnish the remaining information and material.