Awadh Kishor Singh Vs National Faceless Assessment Centre (Patna High Court)
Patna High Court held that Faceless Assessment Procedure as prescribed under section 144B of the Income Tax Act is duly followed and in course of faceless assessment at every stage approval from competent authorities have been obtained. Thus, the case is not fit for jurisdictional error.
Facts- Petitioner is an individual engaged in the business of trade of fish on a fixed commission basis. The respondent no.3 issued a notice under Section148 of the Income Tax Act, 1961 stating therein that he had reason to believe that income has escaped assessment.
The respondent no.3 issued a notice under Section 142(1) of the Act directing the petitioner to explain the source of incomeand furnished bank statement for the financial year 2013-14. Thereafter the notices were issued by the respondent no.1- National Faceless Assessment Centre (in short ‘NFAC’) directing the petitioner to furnish details as regards business, audit reports and other accounting.
The respondent no.1 passed an ex-parte order of assessment dated 03.03.2022for the assessment year 2014-15 under Section 144 and 144B of the Act and accordingly issued a notice of demand. Being aggrieved, the present writ is filed.
Conclusion- A perusal of the documents would show that in the proposal for scrutiny, reasons for selection are duly recorded. The Range Head and CIT/PCIT have also stated in their approval order that they are satisfied with the reasons recorded by the assessing officer and it is a fit case for issuing notice under Section We, therefore, find that there is a due approval under Section 151 of the Act of 1961.
