Maa Padmavati Exports Vs Assessment Unit (Gujarat High Court)
Gujarat High Court has set aside a faceless assessment order issued by the Assessment Unit against Maa Padmavati Exports for the Assessment Year 2022-23. The Court’s decision, delivered recently, stems from the Assessment Unit’s failure to adhere to specific directions issued by the High Court in a previous judgment, particularly concerning the grant of cross-examination opportunities to the assessee. This marks the second time the assessment order for Maa Padmavati Exports has been quashed by the High Court on similar grounds, underscoring the judiciary’s insistence on procedural fairness in faceless assessment proceedings.
Background of the Dispute
The initial assessment order for Maa Padmavati Exports for A.Y. 2022-23 was passed on March 20, 2024, by the faceless Assessment Unit. Maa Padmavati Exports challenged this order before the Gujarat High Court in Special Civil Application No. 6918 of 2024, alleging violations of the principles of natural justice.
On May 6, 2024, the High Court allowed the petition, quashing the March 20, 2024, assessment order. The Court observed a “clear variance” between the draft assessment order (show cause notice) and the final assessment order, contrary to the scheme of faceless assessment under Section 144B of the Income Tax Act, 1961. Crucially, the High Court noted that the Assessing Officer failed to supply a copy of the reply received pursuant to a notice issued under Section 133(6) of the Act. Furthermore, no opportunity for cross-examination was granted to the petitioner regarding the parties whose replies were considered for making additions under Section 68 of the Act.
