Ashok Kumar Meher Vs Central Board of Direct Taxes (Orissa High Court)
Orissa High Court has set aside a faceless assessment order issued by the Income Tax Department against Ashok Kumar Meher for the assessment year 2020-21. The court ruled that the assessee was not granted sufficient time to submit documents, leading to a violation of natural justice principles.
The petitioner, Ashok Kumar Meher, challenged an assessment order dated March 11, 2025, issued by the Assessment Unit, Income Tax Department, National Faceless Assessment Centre, under Sections 147, 144, and 144B of the Income Tax Act, 1961. The petitioner’s case was selected for reassessment under Section 147, and a return of income was filed on April 23, 2024.
According to the petitioner, on March 7, 2025, the Assessment Unit instructed him to upload certain evidence, providing only one day for compliance. The petitioner contended that this timeframe was insufficient, especially given the voluminous nature of the documents and limited upload space on the portal. Consequently, despite efforts to scan and submit the documents, the assessment was framed, resulting in a demand of Rs. 4,94,614/-.
Advocate Sri Chitrasen Parida, representing the petitioner, highlighted a Standard Operating Procedure (SOP) issued by the Ministry of Finance, Central Board of Direct Taxes, National Faceless Assessment Centre, on August 3, 2022. Paragraph N.1.3.1 of this SOP stipulates a response time of seven days from the issue of a show cause notice to ensure adherence to natural justice principles and reasonable opportunity for the assessee. While the SOP allows for curtailment of this period based on the limitation date for completing the assessment (N.1.3.2), the petitioner argued that the notice issued on March 7, 2025, with a reply due date of March 9, 2025, clearly violated this guideline.
