MS Lokesh Constructions P Ltd Vs ACIT (Delhi High Court)
1. It is required to be noted that initially, the petitioner had declared its income as ₹ 87,55,390/-; which was revised to ₹ 73,59,500/-.
2. Via the impugned assessment order dated 07.04.2021, an addition of ₹ 13,95,890/-, has been made to the declared income of the petitioner.
3. To our minds, since there was a variation in the declared income, the respondent was required to issue a show cause notice-cum-draft assessment order, in consonance with the provisions of Section 144B of the Act and the Faceless Assessment Scheme, 2019. [See: Judgement dated 27.05.2021, passed in W.P. (C) No. 5552/2021, titled YCD Industries vs. National Faceless Assessment Centre, Delhi]
4. Accordingly, the impugned assessment order, and the consequential notices issued, i.e., notice of demand issued under Section 156 of the Act, and notice for initiation of penalty proceedings issued under Section 274 read with Section 270A of the Act, are set aside.
5. Liberty is, however, given to the respondent/revenue to pass a fresh assessment order, albeit, as per law.
6. The respondent/revenue will grant a personal hearing to the authorised representative of the petitioner.
7. The respondent/revenue will also indicate the date and time of the hearing, well in advance, to the petitioner via its registered e-mail id.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
