AGRAWAL JMC JOINT VENTURE V. ASSISTANT / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER

SCA/7477/2021

AI Insights

The case involves Agrawal JMC Joint Venture, a petitioner challenging an income tax assessment order passed by the Assistant/Joint/Deputy/Assistant Commissioner of Income Tax under Section 143(3) of the Income Tax Act, 1961. The assessment for the year 2018-2019 included substantial income additions which the petitioner contested as illegal and arbitrary. The petitioner argued that the assessment was conducted without adhering to the principles of natural justice, specifically the right to a personal hearing. The respondent, represented by the Income Tax Officer, denied these allegations and suggested that the petitioner had alternative remedies which were not exhausted. The court, after considering the submissions and the relevant legal provisions, found that the petitioner was not afforded a fair opportunity for a personal hearing, which was crucial given the circumstances of the case.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 749613 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 11-10-2021
• Assessment Year: misc
• Other Referred Cases: CIT vs. Chhabil Das Agrawal, Sanjay Aggarwal vs. National Faceless Assessment Centre, Delhi, M/s. Piramal Enterprises Ltd vs. Addl. Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961, Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: MAUNA BHATT
• Assessee Lawyers: BANDISH SOPARKAR
• Keywords: Faceless assessment; Income tax assessment; Natural Justice; Video conferencing
• Section: 143(3); 144B; 144(3)

Judgement Text

"C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 7477 of 2021 FOR APPROVAL AND SIGNATURE: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE RAJENDRA M. SAREEN ========================================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? YES 2 To be referred to the Reporter or not ? YES 3 Whether their Lordships wish to see the fair copy of the judgment ? NO 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? NO ========================================================== AGRAWAL JMC JOINT VENTURE Versus ASSISTANT / JOINT / DEPUTY / ASSISTANT COMMISSIONER OF INCOME TAX/INCOME TAX OFFICER ========================================================== Appearance: MR B S SOPARKAR(6851) for the Petitioner(s) No. 1 MRS MAUNA M BHATT(174) for the Respondent(s) No. 1 ========================================================== CORAM: HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE RAJENDRA M. SAREEN Date : 11/10/2021 ORAL JUDGMENT (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) Page 1 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 1 . T h e p e t i t i o n e r i s b e f o r e t h i s C o u r t u n d e r A r t i c l e 2 2 6 o f t h e C o n s t i t u t i o n o f I n d i a c h a l l e n g i n g t h e o r d e r p a s s e d b y t h e r e s p o n d e n t u n d e r S e c t i o n 1 4 3 ( 3 ) o f t h e I n c o m e T a x A c t , 1 9 6 1 ( ‘ t h e A c t ’ h e r e i n a f t e r ) d a t e d 2 1 . 0 4 . 2 0 2 1 a s s e s s i n g t h e i n c o m e o f t h e p e t i t i o n e r a t R s . 1 0 7 , 4 2 , 6 9 , 4 7 0 / - f o r t h e A s s e s s m e n t Y e a r 2 0 1 8 - 2 0 1 9 o n t h e g r o u n d t h a t t h e s a m e b e i n g a n a c t w h i c h i s b a d , a r b i t r a r y , i l l e g a l a n d c o n t r a r y t o t h e l a w . 2 . T h e f a c t s i n t h e c a p s u l i z e d f o r m a r e a s f o l l o w : 2 . 1 T h e p e t i t i o n e r i s a j o i n t v e n t u r e a n d i s i n t h e b u s i n e s s o f t h e i n f r a s t r u c t u r e p r o j e c t s m a i n l y i n v o l v e d f o r t h e c o n s t r u c t i o n o f h i g h w a y . Page 2 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 2 . 2 T h e p e t i t i o n e r f i l e d i t s r e t u r n o f i n c o m e f o r t h e A s s e s s m e n t Y e a r 2 0 1 8 - 2 0 1 9 o n 2 6 . 0 7 . 2 0 1 8 a t R s . N i l . H i s c a s e w a s p r o c e s s e d u n d e r S e c t i o n 1 4 3 ( 1 ) o f t h e I n c o m e T a x A c t , 1 9 6 1 b y t h e C P C , B a n g a l o r e a n d o n 0 5 . 1 1 . 2 0 1 9 a s s e s s e d t h e t o t a l i n c o m e a t N i l . 2 . 3 I t i s a v e r r e d t h a t h i s c a s e w a s s e l e c t e d f o r l i m i t e d s c r u t i n y t o e x a m i n e t w o i s s u e s a n d n o t i c e s h a d b e e n i s s u e d u n d e r S e c t i o n 1 4 3 ( 2 ) a n d 1 4 3 ( 1 ) o n 2 2 . 0 9 . 2 0 1 9 a n d 3 0 . 0 1 . 2 0 2 0 r e s p e c t i v e l y . T h e s h o w c a u s e n o t i c e w a s a s t o w h y t h e a d d i t i o n s h o u l d n o t b e m a d e i n r e s p e c t o f t h e i n t e r e s t i n c o m e t o t h e t u n e o f R s . 3 5 , 2 0 , 8 9 , 7 9 6 / - a n d a c o n t r a c t r e c e i p t a m o u n t o f R s . 7 2 , 2 1 , 7 9 , 6 7 6 / - f r o m t h e N a t i o n a l H i g h w a y A u t h o r i t y o f I n d i a ( ‘ t h e Page 3 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 N H A I ’ f o r s h o r t ) r e c e i v e d d u r i n g t h e y e a r u n d e r c o n s i d e r a t i o n . A c c o r d i n g t o t h e p e t i t i o n e r , t h e s e w e r e n o t i n c o m e b u t t h e a d v a n c e s c o n t i n g e n t u p o n t h e f i n a l d e c i s i o n o f t h e D e l h i H i g h C o u r t . 2 . 4 A c c o r d i n g t o t h e p e t i t i o n e r , i n d i s r e g a r d t o t h e s u b m i s s i o n a s w e l l a s t h e d e c i s i o n o f t h e A p e x C o u r t , t h e r e s p o n d e n t p a s s e d t h e i m p u g n e d a s s e s s m e n t o r d e r a d d i n g t h e i n c o m e a s m e n t i o n e d a b o v e u n d e r S e c t i o n 1 4 4 ( 3 ) r / w S e c t i o n 1 4 4 B o f t h e A c t . 2 . 5 T h e p e t i t i o n e r h a s q u e s t i o n e d t h e a c t i o n o f t h e r e s p o n d e n t o n t h e g r o u n d o f n o n - o b s e r v a n c e o f p r i n c i p l e o f n a t u r a l j u s t i c e . A l e t t e r w a s s e n t b y t h e p e t i t i o n e r t o t h e A s s e s s i n g O f f i c e r o n 0 7 . 0 4 . 2 0 2 1 r e q u e s t i n g f o r a p e r s o n a l Page 4 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 h e a r i n g , h o w e v e r , t h e s a m e w a s n o t g r a n t e d w i t h o u t a n y c o g e n t r e a s o n s a n d t h e r e f o r e , a l s o r e q u e s t i s m a d e f o r i n d u l g e n c e . 2 . 6 T h e p e t i t i o n e r h a s a l s o o n t h e g r o u n d o f h a r d s h i p a n d i r r e p a r a b l e l o s s u r g e d t o q u a s h t h e i m p u g n e d o r d e r s i n c e t h e d e m a n d r a i s e d i s o f R s . 5 0 , 9 1 , 1 5 , 2 4 0 / - . 2 . 7 A c c o r d i n g t o t h e p e t i t i o n e r , t h e p r i n c i p l e o f a l t e r n a t i v e r e m e d y a l s o w o u l d n o t o p e r a t e w h i c h i s a s e l f i m p o s e d r e s t r i c t i o n . S i n c e t h e b i n d i n g p r e c e d e n t s h a v e n o t b e e n f o l l o w e d a n d t h e p r i n c i p l e s o f n a t u r a l j u s t i c e a l s o h a v e n o t b e e n o b s e r v e d , i t i s n o t n e c e s s a r y f o r t h e p e t i t i o n e r t o e x h a u s t t h e a l t e r n a t i v e r e m e d y , b u t , i t c a n c h a l l e n g e t h i s i l l e g a l i t y d i r e c t l y u n d e r A r t i c l e 2 2 6 o f Page 5 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t h e C o n s t i t u t i o n o f I n d i a . 3 . P r a y e r s s o u g h t f o r i n t h i s p e t i t i o n a r e a s f o l l o w : “7… (a) quash and set aside the impugned order at Annexure-’A’ to this Petition; (b) pending the admission, hearing and final disposal of this petition,to stay implementation and operation of the order at Annexure-’A’ to this petition and stay recovery of tax for A.Y. 2018-19; (c) any other and further relief deemed just and proper be granted in the interest of justice; (d) to provide for the cost of this petition.” 4 . T h i s C o u r t i s s u e d t h e n o t i c e o n 1 5 . 0 6 . 2 0 2 1 . T h e C o u r t o n 2 9 . 0 6 . 2 0 2 1 h a d c a l l e d f o r t h e d r a f t o r d e r d a t e d Page 6 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 0 4 . 0 4 . 2 0 2 1 , w h i c h h a d b e e n b r o u g h t o n t h e r e c o r d . 5 . A f f i d a v i t - i n - r e p l y b y t h e r e s p o n d e n t h a s c o m e f r o m t h e I n c o m e T a x O f f i c e r , W a r d - 3 ( 3 ) ( 1 ) , A h m e d a b a d d e n y i n g a l l a v e r m e n t s r a i s e d i n t h i s p e t i t i o n . A c c o r d i n g t o t h e r e s p o n d e n t , i f t h e p e t i t i o n e r i s a g g r i e v e d b y t h e A s s e s s m e n t O r d e r , t h e a l t e r n a t i v e e f f i c a c i o u s r e m e d y i s a v a i l a b l e b y w a y o f a n A p p e a l t o t h e C I T ( A p p e a l ) a n d t h e r e a f t e r , t o t h e A p p e l l a t e T r i b u n a l a s t h e s t a t u t o r y f o r u m i s c r e a t e d f o r r e d r e s s a l o f t h e g r i e v a n c e , t h e w r i t p e t i t i o n i s n o t t o b e e n t e r t a i n e d r e l y i n g o n t h e d e c i s i o n o f t h e A p e x C o u r t r e n d e r e d i n c a s e o f C I T V S . C h h a b i l d a s A g r a w a l , r e p o r t e d i n 3 5 7 I T R 3 5 7 . I t i s t h i s d e n i e d t h a t t h e r e h a s b e e n a n y v i o l a t i o n o f p r i n c i p l e s o f n a t u r a l j u s t i c e . Page 7 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 5 . 1 I t i s s p e c i a l l y d e n i e d t h a t d e s p i t e t h e s p e c i f i c r e q u e s t f o r a p e r s o n a l h e a r i n g o n 0 7 . 0 4 . 2 0 2 1 , n o p e r s o n a l h e a r i n g i n g r a n t e d . W h a t i s r e q u e s t e d i n c o n t i n u a t i o n t o t h e r e p l y d a t e d 0 6 . 0 4 . 2 0 2 1 i s t h a t i f t h e r e s p o n d e n t i s n o t s a t i s f i e d w i t h t h e e x p l a n a t i o n o f t h e p e t i t i o n e r , t h e n t h e p e t i t i o n e r b e p r o v i d e d v i d e o c o n f e r e n c i n g o p t i o n t o d i s c u s s t h e i s s u e . 5 . 2 I t i s a c o n t e n t i o n o f t h e r e s p o n d e n t t h a t t h e o p p o r t u n i t y o f h e a r i n g t h r o u g h v i d e o c o n f e r e n c i n g c o u l d n o t b e a f f o r d e d t o t h e p e t i t i o n e r o n a c c o u n t o f f a i l u r e o n t h e p a r t o f t h e p e t i t i o n e r t o s u b m i t s u c h r e q u e s t a s p e r t h e g u i d e l i n e s f o r p e r s o n a l h e a r i n g . 5 . 3 T h e N F A C , N e w D e l h i h a d i s s u e d t h e S t a n d a r d O p e r a t i n g P r o c e d u r e ( S O P ) f o r Page 8 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 A s s e s s m e n t U n i t , V e r i f i c a t i o n U n i t , T e c h n i c a l U n i t a n d R e v i e w U n i t u n d e r t h e F a c e l e s s A s s e s s m e n t S c h e m e , 2 0 1 9 o n 1 9 . 1 1 . 2 0 2 0 . T h e g u i d e l i n e s h a v e b e e n c i r c u l a t e d t h r o u g h t h e v i d e o c o n f e r e n c i n g i s s u e d b y t h e N F A C t h r o u g h e - m a i l d a t e d 1 3 . 0 4 . 2 0 2 1 a n d t h e s t e p s h a v e b e e n d e s c r i b e d . N o s u c h r e q u e s t f o r p e r s o n a l h e a r i n g a s p e r t h e s t e p s a s d e t a i l e d i n t h i s r e p l y h a v e b e e n m a d e a l t h o u g h , t h e o p t i o n f o r p e r s o n a l h e a r i n g t h r o u g h v i d e o c o n f e r e n c i n g w a s a c t i v a t e d i n t h e w o r k l i s t o n t h e d a t e o f s h o w c a u s e n o t i c e d a t e d 0 4 . 4 . 2 0 2 1 . F o r p r e f e r r i n g t h e p e r s o n a l h e a r i n g t h r o u g h v i d e o c o n f e r e n c i n g a p p r o p r i a t e h y p e r l i n k i s a v a i l a b l e i n t h e e - f i l i n g p o r t a l e v e r y t i m e t h e s h o w c a u s e n o t i c e i s i s s u e d . T h e r e f o r e , f u r n i s h i n g t h e w r i t t e n r e p l y t o s h o w c a u s e Page 9 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 n o t i c e o n 0 7 . 0 4 . 2 0 2 1 w i t h o u t c l i c k i n g o n t h e h y p e r l i n k i s i n s u f f i c i e n t t o p r o v i d e t h e f a c i l i t y t o t h e p e t i t i o n e r . T h e p r i n t o f t h e c a s e h i s t o r y n o t i n g i s a n n e x e d t o s u b s t a n t i a t e t h i s a s p e c t . 5 . 4 I t i s e m p h a s i s e d t h a t i f a t a l l t h e r e i s n o n a v a i l a b i l i t y o f p e r s o n a l h e a r i n g , i t i s d u e t o t h e t e c h n i c a l c h a l l e n g e o n t h e p a r t o f t h e p e t i t i o n e r . T h e w r i t t e n s u b m i s s i o n s / r e p l i e s d a t e d 0 6 . 0 4 . 2 0 2 1 a n d 0 8 . 0 4 . 2 0 2 1 i n r e s p o n s e t o t h e s h o w c a u s e n o t i c e h a v e a l r e a d y b e e n d u l y t a k e n c a r e o f b e f o r e p a s s i n g t h e A s s e s s m e n t O r d e r . A f t e r a n a l y z i n g t h e T e c h n i c a l A s s i s t a n c e R e p o r t o f t h e T e c h n i c a l U n i t ( T U ) a n d R e v i e w R e p o r t f r o m R e v i e w U n i t ( R U ) , t h e f i n a l A s s e s s m e n t O r d e r h a s b e e n p a s s e d o n t h e b a s i s o f d e t a i l s s u b m i t t e d b y Page 10 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t h e a s s e s s e e a n d t h e d o c u m e n t s a v a i l a b l e o n t h e I T B A . 5 . 5 I t i s r e i t e r a t i v e l y e m p h a s i s e d t h a t t h e s t a t u t o r y m e c h a n i s m c a n n o t b e o v e r l o o k e d f o r r e d r e s s a l o f h i s g r i e v a n c e a n d t h e r e f o r e , t h e C o u r t n e e d n o t e n t e r t a i n t h i s . 6 . A f f i d a v i t - i n - r e j o i n d e r h a s b e e n f i l e d b y t h e a u t h o r i s e d s i g n a t o r y o f t h e p e t i t i o n e r . A c c o r d i n g t o t h e p e t i t i o n e r , t h e s t a n d o f t h e r e s p o n d e n t i s s e l f c o n t r a d i c t o r y s o f a r a s i t s e m p h a s i s o n t h e g u i d e l i n e s f o r p e r s o n a l h e a r i n g i s c o n c e r n e d , t h e C B D T C i r c u l a r i s d a t e d 2 3 . 1 1 . 2 0 2 0 f o r t h e v i d e o c o n f e r e n c e . T h e w r i t t e n s u b m i s s i o n i s r e q u i r e d t o b e f u r n i s h e d a s p e r t h i s S O P i n r e s p o n s e t o t h e d r a f t a s s e s s m e n t Page 11 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 o r d e r . T h e w r i t t e n s u b m i s s i o n s w e r e s u b m i t t e d o n 0 7 . 0 4 . 2 0 2 1 o n t h e p a r t o f t h e p e t i t i o n e r , a n d h e n c e , t h e p e t i t i o n i s i n t h e l i n e o f S O P i s s u e d b y t h e C B D T . T h e r e i s n o e v i d e n c e t o s h o w t h e e x i s t e n c e o f a n y h y p e r l i n k a s o n 0 4 . 0 4 . 2 0 2 1 n o r h a s t h e r e s p o n d e n t p r o v i d e d a n y S O P o r C B D T g u i d e l i n e s u n d e r w h i c h t h e h y p e r l i n k w a s c r e a t e d a n d p r o v i d e d . T h e s c r e e n s h o t o f t h e c a s e h i s t o r y p r o v i d e d b y t h e r e s p o n d e n t s h o w s t h e l e t t e r o f t h e p e t i t i o n e r d a t e d 0 7 . 0 4 . 2 0 2 1 , h o w e v e r , i t d o e s n o t s h o w e x i s t e n c e o f a n y c l i c k a b l e h y p e r l i n k . 6 . 1 A c c o r d i n g t o t h e p e t i t i o n e r , d u e t o c h a n g e i n t h e e n t i r e I T B A P o r t a l S y s t e m a n d u n a v a i l a b i l i t y o f t h e n e w s y s t e m f o r m o r e t h a n a m o n t h , t h e p e t i t i o n e r w a s u n a b l e t o a c c e s s t o t h e p o r t a l t o c o n f i r m t h e s a m e . Page 12 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 T h e r e i s n o S O P a v a i l a b l e i n t h e p u b l i c d o m a i n i n c l u d i n g t h e w e b s i t e o f I n c o m e T a x D e p a r t m e n t r e g a r d i n g t h e s y s t e m o f h y p e r l i n k a v a i l a b l e t o b e u s e d i n c a s e o f t h e a p p l i c a t i o n f o r t h e v i d e o c o n f e r e n c i n g . 6 . 2 A c c o r d i n g t o t h e p e t i t i o n e r , t h e g u i d e l i n e s i s s u e d b y N e F A C d a t e d 1 3 . 0 4 . 2 0 2 1 a r e i s s u e d o n l y o n 1 3 . 0 4 . 2 0 2 1 w h e r e a s t h e r e q u e s t w a s m a d e o n 0 7 . 0 4 . 2 0 2 1 a n d h e n c e , t h e g u i d e l i n e s d i d n o t e x i s t a t t h e r e l e v a n t t i m e a n d s e c o n d l y , t h e s e g u i d e l i n e s a r e n o t a v a i l a b l e i n t h e p u b l i c d o m a i n a n d h e n c e , t h e r e i s n o w a y t h e p e t i t i o n e r c o u l d h a v e k n o w n t h e m . T h e w e b s i t e o f t h e I n c o m e T a x D e p a r t m e n t a l s o d o e s n o t r e f l e c t t h e s e g u i d e l i n e s . T h e r e i s n o t h i n g o n t h e r e c o r d t o e s t a b l i s h t h a t t h i s h a d b e e n m a d e k n o w n t o e v e r y o n e . Page 13 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 7 . T h i s C o u r t h a d e x t e n s i v e l y h e a r d t h e l e a r n e d a d v o c a t e , M r . B a n d i s h S o p a r k a r a n d l e a r n e d s e n i o r a d v o c a t e , M r . M a n i s h B h a t t a s s i s t e d b y t h e l e a r n e d s e n i o r s t a n d i n g c o u n s e l , M r s . M a u n a B h a t t . A s t h e h e a v y r e l i a n c e w a s p l a c e d o n t h e g u i d e l i n e s i s s u e d b y t h e N F A C c i r c u l a t e d t h r o u g h e - m a i l d a t e d 1 3 . 0 4 . 2 0 2 1 , a n o r d e r w a s p a s s e d o n 2 9 . 0 9 . 2 0 2 1 t o l e t t h e C o u r t k n o w o f t h e d a t e a n d t h e a u t h o r i t y w h i c h h a d i s s u e d t h e g u i d e l i n e s f o r p e r s o n a l h e a r i n g t h r o u g h v i d e o c o n f e r e n c i n g . B e f o r e i n i t i a t i n g t h e d i c t a t i o n , t h e c o m p l i a n c e o f t h e o r d e r o f t h i s C o u r t d a t e d 2 9 . 0 9 . 2 0 2 1 w a s i n q u i r e d a b o u t a n d t h e r e p l y t o w h i c h h a s b e e n g i v e n o n t h e p a r t o f t h e r e s p o n d e n t o f a b s e n c e o f s u c h i n s t r u c t i o n s o n t h e p a r t o f t h e d e p a r t m e n t . Page 14 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 8 . O n t h e s t r e n g t h o f t h e s u b m i s s i o n s m a d e b e f o r e t h i s C o u r t a n d a l s o c o n s i d e r i n g t h e m a t e r i a l w h i c h h a s b e e n p l a c e d o n r e c o r d , w e a t t h e o u t s e t m a k e a m e n t i o n t h a t w e a r e r e s t r i c t i n g o u r s e l v e s t o t h e a s p e c t o f a v a i l m e n t o f t h e o p p o r t u n i t y o f h e a r i n g t o t h e p e t i t i o n e r a t t h e t i m e o f f r a m i n g t h e a s s e s s m e n t i n i t s c a s e . I t i s a l s o n e c e s s a r y f o r t h i s C o u r t t o m a k e a m e n t i o n a t t h i s s t a g e t h a t t h e s e l f r e s t r a i n t f o r e n t e r t a i n i n g t h e p e t i t i o n u n d e r A r t i c l e 2 2 6 o f t h e C o n s t i t u t i o n o f I n d i a e v e n w h e n t h e s t a t u t o r y r e m e d i e s a r e a v a i l a b l e i s a w e l l l a i d d o w n p r i n c i p l e w h i c h t h e C o u r t n e e d n o t e m p h a s i z e a t t h i s s t a g e . S u f f i c e t o n o t e t h a t t h e r e a r e s e t t l e d p o s i t i o n o f l a w a n d t h i s C o u r t c a n s u r e l y i n d u l g e i n t o t h e m a t t e r w h e n t h o s e g r o u n d s e x i s t , o n e o f Page 15 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 w h i c h i s o f v i o l a t i o n o f p r i n c i p l e s o f n a t u r a l j u s t i c e . 9 . A s i s q u i t e a p p a r e n t f r o m t h e d e t a i l s t h a t h a d b e e n g i v e n h e r e i n a b o v e t h a t t h e a s s e s s e e a J o i n t V e n t u r e a c t e d a s d e v e l o p e r a n d i n f r a s t r u c t u r e p r o j e c t d e v e l o p e r s i n c e i t i s i n v o l v e d i n t h e c o n s t r u c t i o n o f h i g h w a y , w h o s e c a s e h a d b e e n p r o c e s s e d u n d e r S e c t i o n 1 4 3 ( 1 ) o f t h e I n c o m e T a x A c t f o r t h e A s s e s s m e n t Y e a r 2 0 1 8 - 2 0 1 9 b y C P C , B a n g a l o r e o n 0 5 . 1 1 . 2 0 1 9 o n a t o t a l i n c o m e o f R s . N i l . T h e p e t i t i o n e r ’ s c a s e h a s b e e n s e l e c t e d f o r t h e l i m i t e d s c r u t i n y a n d t h e i s s u e s f o r s e l e c t i o n w e r e r e f u n d c l a i m a n d t h e c o n t r a c t r e c e i p t o n f e e s . 1 0 . T h e n o t i c e u n d e r S e c t i o n 1 4 3 ( 2 ) o f t h e I T A c t w a s i s s u e d e l e c t r o n i c a l l y o n Page 16 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 2 2 . 0 9 . 2 0 1 9 a n d s e r v e d u p o n t h e A s s e s s e e o n i t s e - m a i l i d r e g i s t e r e d w i t h t h e d e p a r t m e n t a n d i t s r e p l y w a s f i x e d o n 0 7 . 1 0 . 2 0 1 9 . 1 1 .T h e n o t i c e u n d e r S e c t i o n 1 4 2 ( 1 ) o f t h e I T A c t a l o n g w i t h t h e q u e s t i o n n a i r e a l s o w a s i s s u e d o n 3 0 . 0 1 . 2 0 2 0 , t h e c o m p l i a n c e o f w h i c h w a s o n d a t e d 1 4 . 0 2 . 2 0 2 0 . A n o t h e r n o t i c e u n d e r S e c t i o n 1 4 2 ( 1 ) o f t h e I T A c t a l o n g w i t h t h e q u e s t i o n n a i r e h a d b e e n i s s u e d o n 1 1 . 1 2 . 2 0 2 0 s e n t t h r o u g h t h e e l e c t r o n i c m o d e f o r c o m p l i a n c e o n 2 0 . 1 2 . 2 0 2 0 u n d e r t h e f a c e l e s s s c h e m e . I n r e p l y t o t h e n o t i c e d a t e d 1 1 . 1 2 . 2 0 2 0 u n d e r S e c t i o n 1 4 2 ( 1 ) o n 2 4 . 1 2 . 2 0 2 0 t h e p o i n t w i s e r e p l y h a d b e e n g i v e n b y t h e p e t i t i o n e r . O n 2 2 . 0 2 . 2 0 2 1 i n r e p l y t o t h e n o t i c e u n d e r S e c t i o n 1 4 2 ( 1 ) o f 1 9 . 0 2 . 2 0 2 1 h a d b e e n Page 17 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 g i v e n . O n 0 8 . 0 1 . 2 0 2 0 w i t h r e f e r e n c e t o t h e n o t i c e u n d e r S e c t i o n 1 4 3 ( 2 ) o f t h e r e s p o n d e n t , t h e c l a r i f i c a t i o n o n t h e i s s u e s o f r e f u n d c l a i m , c o n t r a c t r e c e i p t a n d f e e s h a d b e e n m a d e . 1 1 . 1 T h e s h o w c a u s e n o t i c e w a s i s s u e d a s t o w h y t h e a s s e s s m e n t s h o u l d n o t b e c o m p l e t e d a s p e r t h e d r a f t a s s e s s m e n t o r d e r o n 0 4 . 0 4 . 2 0 2 1 , p r o p o s i n g t o m o d i f y t h e i n c o m e a n d t h e s u m p a y a b l e w h i c h i s s e r v e d e l e c t r o n i c a l l y t o t h e p e t i t i o n e r . I n r e s p o n s e t o t h e s a i d s h o w c a u s e n o t i c e , t h e r e p l y h a s b e e n g i v e n 0 6 . 0 4 . 2 0 2 1 . I n c o n t i n u a t i o n o f t h e r e p l y d a t e d 0 6 . 0 4 . 2 0 2 1 f u r t h e r c o m m u n i c a t i o n h a d b e e n s e n t t o t h e I n c o m e T a x O f f i c e r o n 0 7 . 0 4 . 2 0 2 1 r e q u e s t i n g s p e c i f i c a l l y t h a t i f t h e r e s p o n d e n t i s n o t s a t i s f i e d w i t h t h e e x p l a n a t i o n , t h e Page 18 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 p e t i t i o n e r s h o u l d b e p r o v i d e d v i d e o c o n f e r e n c i n g o p t i o n t o d i s c u s s t h e i s s u e . T h e r e p l y m e n t i o n s t h e c o n t i n u a t i o n o f r e p l y d a t e d 0 6 . 0 4 . 2 0 2 1 , t h e f u r t h e r s u b m i s s i o n s h a v e b e e n m a d e o n m e r i t s a n d o n 1 5 . 0 4 . 2 0 2 1 a l s o , f u r t h e r r e p l y h a s b e e n t e n d e r e d . 1 2 . T h e r e i s n o r e f e r e n c e i n t h e c o m m u n i c a t i o n d a t e d 0 8 . 0 4 . 2 0 2 1 o f t h e l e t t e r o f 0 7 . 0 4 . 2 0 2 1 , h o w e v e r , a c c o r d i n g t o t h e p e t i t i o n e r . T h e c o m m u n i c a t i o n d a t e d 0 8 . 0 4 . 2 0 2 1 a d d r e s s e d t o t h e I n c o m e T a x O f f i c e r i s a r e p l y o n m e r i t s t h e r e f o r e , i n c o n t i n u a t i o n o f t h e e a r l i e r r e p l y d a t e d 0 6 . 0 4 . 2 0 2 1 t h i s h a d b e e n s e n t e l e c t r o n i c a l l y . A s m e n t i o n e d , t h e d r a f t a s s e s s m e n t o r d e r w a s s e r v e d u p o n t h e p e t i t i o n e r o n 0 4 . 0 4 . 2 0 2 1 . I t i s n o t b e i n g Page 19 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 d i s p u t e d t h a t i n c o n t i n u a t i o n o f t h e r e p l y d a t e d 0 6 . 0 4 . 2 0 2 1 , t h e r e q u e s t w a s m a d e t o t h e r e s p o n d e n t t o p r o v i d e t h e o p t i o n o f t h e v i d e o c o n f e r e n c i n g f o r d i s c u s s i n g t h e i s s u e p e r s o n a l l y o n 0 7 . 0 4 . 2 0 2 1 . H o w e v e r , a c c o r d i n g t o t h e r e s p o n d e n t , s u c h r e q u e s t s i n c e h a d n o t b e e n m a d e a s p e r t h e g u i d e l i n e s i s s u e d f o r t h e p e r s o n a l h e a r i n g b y t h e p e t i t i o n e r a s p r o v i d e d u n d e r t h e F a c e l e s s A s s e s s m e n t S c h e m e , 2 0 1 9 , s u c h p e r s o n a l h e a r i n g n a t u r a l l y c o u l d n o t b e g i v e n t o h i m . H e h i m s e l f h a s n o t a v a i l e d t h e o p p o r t u n i t y a n d t h e r e f o r e , h e h a s n o o n e t o b l a m e t o . N F A C c i r c u l a t e d t h r o u g h e - m a i l , t h e g u i d e l i n e s i s s u e d f o r p e r s o n a l h e a r i n g o n d a t e d 1 3 . 0 4 . 2 0 2 1 i n c o n n e c t i o n w i t h t h e S O P . T h e s t e p s m e n t i o n e d a r e a s f o l l o w : “1.The assessee has to request for a personal hearing Page 20 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 by clicking on the hyperlink for video conferencing VC which shall be available to him on e-filing portal against the Show Cause Notice. This hyperlink is enable only when an SCN issued to the assessee and remains active till the compliance date of SCN. 2. The video conferencing requests made by taxpayer after clicking the above link, will be available in the case History/Nothing screen in Assessment Proceedings. A link will be available to FAO in Case History/Notings against the Show Cause Notice row to schedule a VC.” 1 3 . T h i s r e i t e r a t i v e e m p h a s i s o n t h e p a r t o f t h e r e s p o n d e n t i s o f a l r e a d y h a v i n g a f f o r d e d t h e o p p o r t u n i t y . T h e r e i s a n a c q u i e s c e n c e b y t h e p e t i t i o n e r , a c c o r d i n g t o t h e r e s p o n d e n t , o f e x i s t e n c e o f t h e l i n k w h i c h i t h a s c h o s e n n o t t o a v a i l . T h e p r o c e e d i n g s h a v e b e e n i n i t i a t e d o n 2 2 . 0 9 . 2 0 1 9 . A c c o r d i n g t o t h e r e s p o n d e n t , t h e p e t i t i o n e r w a s g i v e n a n o p p o r t u n i t y t o s h o w c a u s e w h y t h e a s s e s s m e n t s h o u l d n o t b e Page 21 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 c o m p l e t e d a s p e r t h e d r a f t a s s e s s m e n t o r d e r . I f t h e a s s e s s e e d e s i r e s t o r e s p o n d t h r o u g h t h e r e g i s t e r e d e - f i l i n g a c c o u n t , h e c o u l d ( a ) a c c e p t t h e p r o p o s e d m o d i f i c a t i o n ; ( b ) f i l e w r i t t e n r e p l y o b j e c t i n g t o t h e p r o p o s e d m o d i f i c a t i o n a n d ( c ) i f r e q u i r e d , h e m a y r e q u e s t f o r p e r s o n a l h e a r i n g s o a s t o m a k e o r a l s u b m i s s i o n s t o p r e s e n t h i s c a s e a f t e r f i l i n g o f w r i t t e n r e p l y . O n a p p r o v a l o f t h e r e q u e s t , p e r s o n a l h e a r i n g i s p e r m i t t e d t o b e c o n d u c t e d e x c l u s i v e l y t h r o u g h t h e v i d e o c o n f e r e n c e . I t p r o v i d e d t h a t i f t h e r e i s n o r e s p o n s e o f t h e a s s e s s e e b y t h e g i v e n t i m e a n d d a t e , t h e a s s e s s m e n t s h a l l b e f i n a l i s e d a s p e r t h e d r a f t a s s e s s m e n t o r d e r . 1 4 . A c c o r d i n g t o t h e r e s p o n d e n t , t h e p e t i t i o n e r h a d e x e r c i s e d o p t i o n ( b ) a n d Page 22 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 f i l e d t h e r e p l y , h o w e v e r , h i s r e q u e s t f o r p e r s o n a l h e a r i n g o n 0 7 . 0 4 . 2 0 2 1 i s a n a f t e r t h o u g h t . H e o f c o u r s e h a d t h r e e o p t i o n s a n d y e t , o n c e h a v i n g a c c e p t e d t h e o p t i o n ( b ) a n d h a v i n g a c t e d u p o n , h e c a n n o t i n s i s t o n h e a r i n g o n 0 7 . 0 4 . 2 0 2 1 . T h e o p p o r t u n i t y w a s a l r e a d y g i v e n t o h i m a n d h e c o u l d n o t h a v e t h e n a s k e d a n d a l l e g e d o n 2 1 . 0 4 . 2 0 2 1 o f n o n a v a i l m e n t o f o p p o r t u n i t y . T h e r e i s n o e l e m e n t o f p r e j u d i c e a s i s b e i n g s o u g h t t o b e m a d e . 1 5 . W e a r e n o t i n a n a g r e e m e n t w i t h t h e s u b m i s s i o n s m a d e b y t h e R e v e n u e f o r t h e s i m p l e r e a s o n t h a t t h e r e q u e s t w a s i n c o n t i n u a t i o n o f t h e r e p l y w h i c h h a d b e e n f i l e d b y t h e p e t i t i o n e r a f t e r t h e f i n a l n o t i c e w a s i s s u e d o n 0 4 . 0 4 . 2 0 2 1 w i t h t h e d r a f t a s s e s s m e n t o r d e r . W i t h i n t w o d a y s , t h e Page 23 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 r e p l y c a m e t o b e f i l e d o n 0 6 . 0 4 . 2 0 2 1 i n r e s p o n s e t o t h e s a i d n o t i c e . H i s r e q u e s t f o r t h e p e r s o n a l h e a r i n g h a d c o m e o n t h e t h i r d d a y o f t h e i s s u a n c e o f t h e n o t i c e . T h e C o u r t c a n n o t b e o b l i v i o u s o f t h e f a c t t h a t i t w a s n o t t h e c a s e w h e r e t h e a s s e s s m e n t w a s g e t t i n g t i m e b a r r e d . T h e a d d i t i o n p r o p o s e d b y w a y o f t h e d r a f t a m e n d m e n t w a s s u b s t a n t i a l t h e r e f o r e , w i t h i n t h r e e d a y s o f t h e i s s u a n c e o f t h e n o t i c e a n d w i t h i n a d a y ’ s t i m e o f f i l i n g o f t h e r e p l y , i f a r e q u e s t i s m a d e o n t h e p a r t o f t h e p e t i t i o n e r f o r p e r s o n a l h e a r i n g , i t i s n o t a s u s t a i n a b l e s t a n d o f t h e r e v e n u e t h a t s u c h r e q u e s t h a v i n g c o m e o n 0 7 . 0 4 . 2 0 2 1 a f t e r h a v i n g e x e r c i s e d t h e o p t i o n o f f i l i n g t h e r e p l y , n e e d s t o b e t e r m e d a s a n a f t e r t h o u g h t a n d t o b e b r u s h e d a s i d e . Page 24 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 1 6 . T h e C o u r t i s r e q u i r e d t o t a k e i n t o c o n s i d e r a t i o n t h e a d d i t i o n o f S e c t i o n 1 4 4 B o f t h e I T A c t , w h i c h i s a f a c e l e s s r e g i m e u n d e r t h e h e a d i n g o f f a c e l e s s a s s e s s m e n t i n s e r t e d b y t h e T a x a t i o n a n d o t h e r l a w s ( R e l a x a t i o n a n d A m e n d m e n t o f C e r t a i n p r o v i s i o n s ) A c t , 2 0 2 0 w . e . f . 0 1 . 0 4 . 2 0 2 1 w h e r e a s s e s s m e n t u n d e r s u b - s e c t i o n ( 3 ) o f S e c t i o n 1 4 3 o r u n d e r S e c t i o n 1 4 4 o f t h e I T A c t h a s b e e n c o v e r e d . I n t h e c a s e r e f e r r e d t o i n s u b - s e c t i o n ( 2 ) o f S e c t i o n 1 4 3 n o w i s m a n d a t o r i l y m a d e i n a f a c e l e s s m a n n e r a s p e r t h e p r o c e d u r e p r e s c r i b e d i n t h i s s c h e m e . T h e s c h e m e o f t h e A c t a s i t g o e s r e f l e c t s t h a t t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e i s a u t h o r i s e d t o s e r v e u p o n t h e a s s e s s e e a n o t i c e u n d e r S e c t i o n 1 4 4 g i v i n g h i m a n o p p o r t u n i t y t o s h o w c a u s e o n a d a t e a n d t i m e t o b e s p e c i f i e d i n t h e Page 25 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 n o t i c e . W h e r e t h e a s s e s s e e f a i l s t o c o m p l y w i t h t h e n o t i c e r e f e r r e d t o i n c l a u s e ( 4 ) o r n o t i c e i s s u e d u n d e r s u b - s e c t i o n ( 1 ) o f S e c t i o n 1 4 2 o r w i t h a d i r e c t i o n i s s u e d u n d e r s u b - s e c t i o n 2 A o f S e c t i o n 1 4 2 a s t o w h y t h e a s s e s s m e n t i n h i s c a s e s h o u l d n o t b e c o m p l e t e d t o t h e b e s t o f i t s j u d g m e n t . T h e a s s e s s e e s h a l l a l s o w i t h i n t h e t i m e s p e c i f i e d i n t h e n o t i c e i s r e q u i r e d t o f i l e t h e r e s p o n s e o r w i t h i n s u c h t i m e a s m a y b e e x t e n d e d o n t h e b a s i s o f a n a p p l i c a t i o n i n t h i s r e g a r d . T h e A s s e s s m e n t U n i t s h a l l a f t e r t a k i n g i n t o a c c o u n t t h e r e l e v a n t m a t e r i a l a v a i l a b l e o n t h e r e c o r d a n d m a k e i n w r i t i n g a s p e r S e c t i o n 1 4 4 ( 1 ) X L t h e d r a f t a s s e s s m e n t o r d e r e i t h e r a c c e p t i n g t h e i n c o m e o r s u m p a y a b l e b y o r s u m r e f u n d a b l e t o t h e a s s e s s e e a n d s e n d a c o p y o f s u c h o r d e r t o N a t i o n a l F a c e l e s s A s s e s s m e n t Page 26 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 C e n t r e . 1 6 . 1 W o r t h w h i l e w o u l d i t b e t o r e f e r t o S e c t i o n 1 4 4 B ( 1 ) x v i , i t c l e a r l y p r o v i d e s f o r t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e t o e x a m i n e t h e d r a f t a s s e s s m e n t o r d e r . T h e r e a r e t h r e e o p t i o n s o n e o f w h i c h i s t o p r o v i d e a n o p p o r t u n i t y t o t h e a s s e s s e e i n c a s e o f a n y v a r i a t i o n p r e j u d i c i a l t o t h e i n t e r e s t o f t h e a s s e s s e e i s p r o p o s e d a n d t h e s a m e i s t o b e d o n e b y s e r v i n g a n o t i c e c a l l i n g u p o n h i m t o s h o w c a u s e a s t o w h y t h e p r o p o s e d v a r i a t i o n s h o u l d n o t b e m a d e . “ 144B(1)xvi: the National Faceless Assessment Centre shall examine the draft assessment order in accordance with the risk management strategy specified by the Board, including by way of an automated examination tool, whereupon it may decide to- (a) finalise the assessment, in case no variation Page 27 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 prejudicial to the interest of assessee is proposed, as per the draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, along with the demand notice, specifying the sum payable by, or refund of any amount due to, assessee on the basis of such assessment; or (b) provide an opportunity to the assessee, in case any variation prejudicial to the interest of assessee is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made; or (c) assign the draft assessment order to a review unit in any one Regional Faceless Assessment Centre, through an automated allocation system, for conducting review of such order; 1 6 . 2 T h e a s s e s s e e i n c a s e w h e r e a s h o w c a u s e n o t i c e h a s b e e n s e r v e d u p o n h i m a s p e r t h e p r o c e d u r e l a i d d o w n i n C l a u s e x v i o f S e c t i o n 1 4 4 B ( 1 ) f u r n i s h e s r e s p o n s e t o t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e o n o r Page 28 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 b e f o r e t h e s c h e d u l e d d a t e a n d t i m e o r w i t h i n t h e e x t e n d e d t i m e . 1 6 . 3 C l a u s e ( x x i i i ) p r o v i d e s f o r t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e t o f i n a l i z e t h e d r a f t a s s e s s m e n t w h e r e n o r e s p o n s e t o t h e s h o w c a u s e n o t i c e i s r e c e i v e d i n a c a s e w h e r e t h e d r a f t a s s e s s m e n t o r d e r a l o n g w i t h t h e f i n a l n o t i c e i s p r o p o s e d f o r m a k i n g a n y v a r i a t i o n , p r e j u d i c i a l t o t h e i n t e r e s t o f a s s e s s e e . T h e d r a f t a s s e s s m e n t o r d e r o r f i n a l d r a f t a s s e s s m e n t o r d e r , i n c a s e o f s u c h a s s e s s e e o r i n a n y o t h e r c a s e o n c e f i n a l i s e d a s p e r t h e d r a f t a s s e s s m e n t o r d e r , a c o p y n e e d s t o b e s e r v e d o f s u c h o r d e r a n d n o t i c e f o r i n i t i a t i o n o f t h e p e n a l t y p r o c e e d i n g s t o t h e a s s e s s e e a l o n g w i t h t h e d e m a n d n o t i c e . I n a n y o t h e r c a s e , t h e N a t i o n a l F a c e l e s s S c h e m e C e n t r e t o s e n d t h e Page 29 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 r e s p o n s e r e c e i v e d f r o m t h e a s s e s s e e t o t h e A s s e s s m e n t U n i t . “Clause xxiii: the National Faceless Assessment Centre shall (a) where no response to the show-cause notice is received as per clause (xxii), (A) in a case where the draft assessment order or the final draft assessment order is in respect of an eligible assessee and proposes to make any variation which is prejudicial to the interest of said assessee, forward the draft assessment order or final draft assessment to such assessee; or (B) in any other case, finalise the assessment as per the draft assessment order or the final draft assessment order and serve a copy of such order and notice for initiating penalty proceedings, if any, to the assessee, alongwith the demand notice, specifying the sum payable by, or refund of any amount due to, the assessee on the basis of such assessment; (b) in any other case, send the response received from the assessee to the assessment unit;” 1 6 . 4 F o r t h e p u r p o s e o f f a c e l e s s Page 30 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 a s s e s s m e n t , s u b - s e c t i o n ( 7 ) o f S e c t i o n 1 4 4 B o f t h e I T A c t w o u l d r e q u i r e r e p r o d u c t i o n . “(7) For the purposes of faceless assessment - (i) an electronic record shall be authenticated by- (a) the National Faceless Assessment Centre by affixing its digital signature; (b) assessee or any other person, by affixing his digital signature if he is required to furnish his return of income under digital signature, and in any other case, by affixing his digital signature or under electronic verification code in the prescribed manner; (ii) every notice or order or any other electronic communication shall be delivered to the addressee, being the assessee, by way of- (a) placing an authenticated copy thereof in the assessee's registered account; or (b) sending an authenticated copy thereof to the registered email address of the assessee or his authorised representative; or (c) uploading an authenticated copy on the assessee's Page 31 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 Mobile App. and followed by a real time alert; (iii) every notice or order or any other electronic communication shall be delivered to the addressee, being any other person, by sending an authenticated copy thereof to the registered email address of such person, followed by a real time alert; (iv) the assessee shall file his response to any notice or order or any other electronic communication, through his registered account, and once an acknowledgement is sent by the National Faceless Assessment Centre containing the hash result generated upon successful submission of response, the response shall be deemed to be authenticated; (v) the time and place of dispatch and receipt of electronic record shall be determined in accordance with the provisions of section 13 of the Information Technology Act, 2000; (vi) a person shall not be required to appear either personally or through authorised representative in connection with any proceedings before the income-tax authority at the National Faceless Assessment Centre or Regional Faceless Assessment Centre or any unit set Page 32 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 up under this sub-section; (vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment order, and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income tax authority in any unit; (viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, under which the concerned unit is set up, may approve the request for personal hearing referred to in clause (vii) if he is of the opinion that the request is covered by the circumstances referred to in sub-clause (h) of clause (xii); (ix) where the request for personal hearing has been approved by the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, such hearing shall be conducted excluively Page 33 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony, in accordance with the procedure laid down by the Board; (x) subject to the proviso to sub-section (6), any examination or recording of the statement of the assessee or any other person (other than statement recorded in the course of survey under section 133A of the Act) shall be conducted by an income-tax authority in any unit, exclusively through video conferencing or video telephony, including use of any telecommunication application software which supports video conferencing or video telephony in accordance with the procedure laid down by the Board; (xi) the Board shall establish suitable facilities for video conferencing or video telephony including telecommunication application software which supports video conferencing or video telephony at such locations as may be necessary, so as to ensure that the assessee, or his authorised representative, or any other person is not denied the benefit of faceless assessment merely on the consideration that such assessee or his authorised representative, or any other person does Page 34 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 not have access to video conferencing or video telephony at his end; (xii) the Principal Chief Commissioner or the Principal Director General, in charge of the National Faceless Assessment Centre shall, with the prior approval of the Board, lay down the standards, procedures and processes for effective functioning of the National Faceless Assessment Centre, Regional Faceless Assessment Centres and the unit set up, in an automated and mechanised environment, including format, mode, procedure and processes in respect of the following, namely:- (a) service of the notice, order or any other communication; (b) receipt of any information or documents from the person in response to the notice, order or any other communication; (c) issue of acknowledgment of the response furnished by the person; (d) provision of \"e-proceeding\" facility including login account facility, tracking status of assessment, display of relevant details, and facility of download; Page 35 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 (e) accessing, verification and authentication of information and response including documents submitted during the assessment proceedings; (f) receipt, storage and retrieval of information or documents in a centralised manner; (g) circumstances in which proviso to sub-section (6) shall apply; (h) circumstances in which personal hearing referred to clause (viii) shall be approved; (i) general administration and grievance redressal mechanism in the respective Centres and units.” 1 6 . 5 C l a u s e ( v i i ) o f s u b - s e c t i o n ( 7 ) o f S e c t i o n 1 4 4 A p r o v i d e s t h a t w h e r e a v a r i a t i o n i s p r o p o s e d i n t h e d r a f t a s s e s s m e n t o r d e r o r f i n a l d r a f t a s s e s s m e n t o r d e r o r r e v i s e d d r a f t a s s e s s m e n t o r d e r , a n o p p o r t u n i t y i s p r o v i d e d t o t h e a s s e s s e e b y s e r v i n g a n o t i c e c a l l i n g u p o n h i m t o s h o w Page 36 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 c a u s e a s t o w h y t h e a s s e s s m e n t s h o u l d n o t b e c o m p l e t e d a s p e r s u c h d r a f t o r f i n a l d r a f t o r r e v i s e d d r a f t a s s e s s m e n t o r d e r . T h e a s s e s s e e o r h i s a u t h o r i s e d r e p r e s e n t a t i v e , a s t h e c a s e m a y b e , m a y r e q u e s t f o r p e r s o n a l h e a r i n g s o a s t o m a k e h i s o r a l s u b m i s s i o n s o r p r e s e n t h i s c a s e b e f o r e t h e i n c o m e t a x a u t h o r i t y i n a n y u n i t . S u c h r e q u e s t m a y b e a p p r o v e d f o r p e r s o n a l h e a r i n g , i f t h e C h i e f C o m m i s s i o n e r o r t h e D i r e c t o r G e n e r a l , I n - c h a r g e o f R e g i o n a l F a c e l e s s A s s e s s m e n t C e n t r e i s o f t h e o p i n i o n t h a t t h e r e q u e s t i s c o v e r e d b y t h e c i r c u m s t a n c e s r e f e r r e d t o i n s u b - c l a u s e ( h ) o f c l a u s e ( x i i ) , w h e r e s u c h r e q u e s t f o r p e r s o n a l h e a r i n g i s a p p r o v e d , s u c h h e a r i n g i s r e q u i r e d t o b e c o n d u c t e d e x c l u s i v e l y t h r o u g h v i d e o c o n f e r e n c i n g o r t h r o u g h v i d e o t e l e p h o n y i n c l u d i n g b y u s e o f a n y Page 37 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t e l e c o m m u n i c a t i o n s o f t w a r e , w h i c h s u p p o r t t h e v i d e o c o n f e r e n c i n g o r v i d e o t e l e p h o n y i n a c c o r d a n c e w i t h t h e p r o c e d u r e l a i d d o w n b y t h e C o u r t . T h e B o a r d i s r e q u i r e d t o e s t a b l i s h t h e s u i t a b l e f a c i l i t y f o r v i d e o c o n f e r e n c i n g a s p e r c l a u s e ( x i i ) o f s u b - s e c t i o n 7 o f S e c t i o n 1 4 4 B o r v i d e o t e l e p h o n y i n c l u d i n g t e l e c o m m u n i c a t i o n a p p l i c a t i o n s o f t w a r e w h i c h s u p p o r t s t h e v i d e o c o n f e r e n c i n g o r v i d e o t e l e p h o n y t o e n s u r e t h a t t h e a s s e s s e e o r i t s a u t h o r i s e d r e p r e s e n t a t i v e s o r a n y o t h e r p e r s o n i s n o t d e n i e d t h e b e n e f i t o f f a c e l e s s a s s e s s m e n t m e a r l y o n t h e c o n s i d e r a t i o n t h a t s u c h a s s e s s e e o r i t s a u t h o r i s e d r e p r e s e n t a t i v e s d o n o t h a v e a c c e s s t o t h e v i d e o c o n f e r e n c i n g o r v i d e o t e l e p h o n y a t a w e b s i t e . Page 38 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 1 6 . 6 C l a u s e ( x i i ) o f s u b - s e c t i o n 7 o f s e c t i o n 1 4 4 B p r o v i d e s f o r t h e P r i n c i p a l C h i e f C o m m i s s i o n e r o r P r i n c i p a l D i r e c t o r G e n e r a l , I n - c h a r g e o f t h e N a t i o n a l F a c e l e s s A s s e s s m e n t S c h e m e C e n t r e w i t h t h e p r i o r a p p r o v a l o f t h e B o a r d t o l a y d o w n t h e s t a n d a r d p r o c e d u r e a n d p r o c e s s f o r e f f e c t i v e f u n c t i o n i n g o f t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e s , R e g i o n a l F a c e l e s s A s s e s s m e n t C e n t r e s a n d t h e U n i t s e t u p i n a n a u t o m a t e d a n d m e c h a n i s e d e n v i r o n m e n t f o r t h e v a r i o u s s e r v i c e s i n c l u d i n g t h e s e r v i c e o f n o t i c e , o r d e r o r o t h e r c o m m u n i c a t i o n , t h e r e c e i p t o f a n i n f o r m a t i o n o r d o c u m e n t , e t c . O n e o f w h i c h i s i m p o r t a n t i s s u b - c l a u s e ( h ) o f c l a u s e ( x i i ) w h i c h p r o v i d e s f o r t h e c i r c u m s t a n c e s i n w h i c h t h e p e r s o n a l h e a r i n g r e f e r r e d t o t h e c l a u s e ( v i i i ) n e e d s t o b e a p p r o v e d . Page 39 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 1 6 . 7 S p e c i f i c m e n t i o n o f s u b - s e c t i o n ( 9 ) o f S e c t i o n 1 4 4 B n e e d s a t t h i s s t a g e w h i c h s t a r t s w i t h N o n - o b s t a n t e c l a u s e a n d d e c l a r e s t h a t t h e a s s e s s m e n t m a d e u n d e r s u b - s e c t i o n ( 3 ) o f S e c t i o n 1 4 3 o r u n d e r S e c t i o n 1 4 4 i n t h e c a s e s r e f e r r e d t o i n s u b - s e c t i o n ( 2 ) o t h e r t h a n s u b - s e c t i o n ( 8 ) o n o r a f t e r t h e 1 s t d a y o f A p r i l , 2 0 2 1 , s h a l l b e n o n e s t i f s u c h a s s e s s m e n t i s n o t m a d e i n a c c o r d a n c e w i t h t h e p r o c e d u r e l a i d d o w n u n d e r t h e s a i d s e c t i o n . P r i n c i p l e s o f n a t u r a l j u r i s t i c w r i t s l a r g e i n t h i s p r o v i s i o n a n d l e g i s l a t u r e ’ s i n s t e a d t o a v a i l t h e o p p o r t u n i t y o f h e a r i n g a l s o i s s t a m p e d a l l o v e r . A v e r y s t r o n g d e t e r r e n c e i s s u e d b y t h e l e g i s l a t u r e f o r t h e r e v e n u e t o a d h e r e t o t h e d e t a i l e d r e q u i r e m e n t o f t h i s p r o v i s i o n a s o t h e r w i s e t h e a s s e s s m e n t w o u l d b e n o n - e s t . 1 6 . 8 I n t h i s b a c k d r o p , w o r t h w h i l e w o u l d b e t o r e f e r t o t h e d e c i s i o n o f t h e D e l h i H i g h C o u r t r e n d e r e d i n c a s e o f S a n j a y A g g a r w a l v s . N a t i o n a l F a c e l e s A s s e s s m e n t C e n t r e , D e l h i , r e p o r t e d i n ( 2 0 2 1 ) 1 2 7 Page 40 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t a x m a n n . c o m 6 3 7 ( D e l h i ) w h e r e t h e H i g h C o u r t w a s c o n s i d e r i n g t h e c h a l l e n g e t o t h e a s s e s s m e n t o r d e r a n d c o n s e q u e n t i a l p r o c e e d i n g s . W h i l e i n t e r p r e t i n g t h e w o r d ‘ m a y ’ i n s e c t i o n 1 4 4 B ( v i i ) a c c o r d i n g t o t h e D e l h i H i g h C o u r t , t h e p r o v i s i o n c a n n o t a b s o l v e t h e r e v e n u e f r o m o b l i g a t i o n c a s t u p o n i t t o c o n s i d e r t h e r e q u e s t m a d e f o r g r a n t o f p e r s o n a l h e a r i n g . W h e r e t h e r e v e n u e s e r v e d a s h o w c a u s e n o t i c e - c u m - d r a f t a s s e s s m e n t o r d e r o n a s s e s s e e p r o p o s i n g t o v a r y t h e i n c o m e d i s c l o s e d b y t h e a s s e s s e e a n d t h e r e a f t e r w i t h o u t a f f o r d i n g a p e r s o n a l h e a r i n g t o t h e a s s e s s e e w h e n p a s s e d t h e a s s e s s m e n t o r d e r t h e s a m e w a s q u a s h e d . 1 6 . 9 T h e r e l e v a n t p a r a g r a p h s d i s c u s s i n g t h i s a s p e c t d e s e r v e s r e p r o d u c t i o n . Page 41 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 “11. Having perused the record and heard the learned counsel for the parties, in our view, what has clearly emerged is, as follows: (i) That prior to the issuance of the how cause notice- cum-draft assessment order dated 23-4-2021, a show- cause notice-cum-draft assessment order was issued on 13-4 2021. In between these two dates, the petitioner had, on two occasions, i.e., 15-4-2021 and 20-4-2021, asked or personal hearing in the matter. (ii) After the show cause notice-cum-draft assessment order dated 23-4-2021 was issued, via which the petitioner was invited to file his response/objections, the petitioner, once again, while filing his reply, on 24-4-2021, asked for being accorded personal hearing in the matter. 11.1 The sum and substance of the requests made, is that, both before and after the issuance of the show- cause notice-cum-draft assessment order dated 23-4- 2021, the petitioner continued to press the respondent/revenue to accord him a personal hearing, before it proceeded to pass the impugned assessment order. As noticed above, according to the petitioner, the request was made as the matter was complex and Page 42 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 therefore, required some bit of explanation. 11.2 It has also emerged that [something which is not in dispute], the respondent/revenue made proposals for varying the income, both via the show-cause notice dated 13-4-2021 as well as the show-cause notice-cum-draft assessment order dated 23-4-2021. As noticed above, the declared income was proposed to be, substantially, varied. 11.3 In this context, if one were to look at the relevant provisions, [which, or the sake of convenience are extracted hereafter], then, one would get a sense as to why the legislature has provided a personal hearing in the matter: \"144B. Faceless assessment - (1).** (7) For the purposes of faceless assessment- (vii) in a case where a variation is proposed in the draft assessment order, or final draft assessment order or revised draft assessment order, and an opportunity is provided to the assessee by serving a notice calling Page 43 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 upon him to show-cause as to why the assessment should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income tax authority in any unit; (viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, under which the concerned unit is set up may approve the request for personal hearing referred to in clause (vi) if he is of the opinion that the request is covered by the circumstances referred to in sub-clause (h) of clause (xii); (xii) the Principal Chief Commissioner or the Principal Director General, in charge of the National Faceless Assessment Centre shall, with the prior approval of the Board, lay down the standards, procedures and processes for effective functioning of the National Faceless Assessment Centre, Regional Faceless Assessment Centres and the unit set up, in automated and mechanised environment, including format, mode, procedure and process in respect of the following, namely: Page 44 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 (h) circumstances in which personal hearing referred to clause (viii) shall be approved; 11.4 A careful perusal of clause (vi) of Section 144B (7) would show that liberty has been given to the assessee, if his/her income is varied, to seek a personal hearing in the matter. Therefore, the usage of the word 'may', to our minds, cannot absolve the respondent/revenue from the obligation cast upon it, to consider the request made for grant of personal hearing. Besides under sub-clause (h) of Section 144B (7)(xi) read with Section 144B (7) (viii), the respondent/revenue has been given the power to frame standards, procedures and processes for approving the request made for according personal hearing to an assessee who makes a request qua the same. 11.5 In several matters, we have asked the counsels for the revenue as to whether any standards, procedures and processes have been framed for dealing with such requests. The response, which we have got from the standing counsels including Mr.Chandra, is hat, to the best of their knowledge, no such standards, procedures as also processes have been framed, as yet. Page 45 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 Conclusion: 12. Therefore, in our view, given the aforesaid facts and circumstances, it was incumbent upon the respondent/revenue to accord a personal hearing to the petitioner As noted above, several requests had been made for personal hearing by the petitioner none of which were dealt with by the respondent/revenue. 12.1 The net impact of this infraction would be that, the impugned orders will have to be set aside. It is ordered accordingly.” 1 6 . 1 0 W e e n t i r e l y a g r e e w i t h t h e f i n d i n g s o f t h e D e l h i H i g h C o u r t o n e s s e n t i a l r e q u i r e m e n t o f a v a i l m e n t o f o p p o r t u n i t y o f p e r s o n a l h e a r i n g t o t h e a s s e s s e w h e r e b y a s k e d f o r . T h e n e e d t o b r i n g o n t h e s t a t u t e s e c t i o n 1 4 4 B f o r f a c e l e s s a s s e s s m e n t , w a s e s s e n t i a l l y f o r t h e p u r p o s e o f b r i n g i n g t r a n s p a r e n c y a n d a c c o u n t a b i l i t y a n d a l s o t o m a k e i t e a s i e r f o r a l l c o n c e r n e d b y Page 46 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 e m p l o y i n g t e c h n o l o g i c a l a d v a n c e s a s t o o l s . T h e C o u r t w a s a l s o o f t h e o p i n i o n t h a t w i t h o u t o r w i t h s u c h s t a t u t o r y s c h e m e , t h e s y s t e m h a s t o b e n e c e s s a r i l y a n d e s s e n t i a l l y b o t h t r a n s p a r e n t a n d a c c o u n t a b l e . 1 7 . T h e B o m b a y H i g h C o u r t i n c a s e o f M / s . P i r a m a l E n t e r p r i s e s L t d . v s . A d d l . C o m m i s s i o n e r o f I n c o m e T a x , r e p o r t e d i n ( 2 0 2 1 ) 1 2 9 t a x m a n n . c o m 1 8 ( B o m b a y ) w a s c o n s i d e r i n g t h e i s s u e o f n o n a v a i l m e n t o f o p p o r t u n i t y o f h e a r i n g t o h o l d t h a t w h e n e v e r t h e a s s e s s e e r e q u e s t s f o r p e r s o n a l h e a r i n g s o a s t o m a k e t h e o r a l s u b m i s s i o n s o r t o r e p r e s e n t t h e c a s e , t h e s a m e n e e d s t o b e a p p r o v e d b y t h e a u t h o r i t i e s r e f e r r e d t o i n t h e p r o v i s i o n . T h e r e q u e s t i s c o v e r e d b y s u b c l a u s e ( h ) o f c l a u s e ( x i i ) w h i c h e m p o w e r s t h e a u t h o r i t i e s w i t h p r i o r a p p r o v a l o f t h e B o a r d t o l a y d o w n t h e s t a n d a r d s , p r o c e d u r e s a n d p r o c e s s e s f o r e f f e c t i v e f u n c t i o n i n g o f N a t i o n a l F a c e l e s s Page 47 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 A s s e s s m e n t C e n t r e . W h i l e s o d o i n g , i t h a s r e l i e d o n t h e d e c i s i o n o f t h e D e l h i H i g h C o u r t . T h e C o u r t a c c o r d i n g l y h e l d t h e a s s e s s m e n t o r d e r p a s s e d a s u n s u s t a i n a b l e , l e a v i n g i t o p e n t o t h e a u t h o r i t i e s t o c a r r y f o r w a r d t h e p r o c e s s i n a c c o r d a n c e w i t h S e c t i o n 1 4 4 B . R e l e v a n t p a r a g r a p h s w o u l d n e e d r e p r o d u c t i o n . “47.Sum and substance of the submissions on behalf of petitioner is that personal hearing in the present matter is essential to properly appreciate the nature and manner in which the transactions are carried out and intricacies of the same can be better explained and brought forth as well as misconstruction by the authorities can be sorted out with proper understanding of the matter. In personal hearing and by oral submissions various aspects, operations/workings which could not be properly appreciated though inscribed under the responses can be resolved. In many a case, it would be possible to appreciate unrealised aspects during hearing and can be effectively explained. According to petitioner, this is precisely the reason as to why personal hearing is Page 48 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 included. 48. Perusal of provisions of section 144B(1), would envince, National Faceless Assessment Centre (NFAC), shall serve a notice on an assessee u/s. 143(2) of IT Act and assessee may file response within a period of fifteen days to NFAC and in the events referred to in clause (iii) (a), (b) or (c), NFAC is to intimate the assessee about that assessment would be completed according to procedure u/s. 144B(1). It is an indication of intention to give prominence to the procedure under section 144B(1). 49. Under sub-section (1) of section 144B, it appears to be prescribed that upon completion of process from clauses (i) to (xiii), the Assessment Unit (AU) is supposed to make a draft assessment order (DAO), after taking into account all relevant material available on record or to the best judgment in case of the matter falling under sub-clause (xiii) wherein the AU is intimated about failure of response from the assessee. 50. Clause (xvi) of section 144B(1) would show that, NFAC on examination of DAO would decide on further course of action to be taken, viz; NFAC may Page 49 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 finalise assessment in accord with DAO if there is no variation prejudicial to interest of the assessee is proposed as per sub clause (a) OR in case variation prejudicial to the interest of assessee is proposed, would provide opportunity to the assessee by serving a notice to show cause according to sub-clause (b) OR under sub-clause (c) decide to assign any DAO to a Review Unit (RU), whether prejudicial to interest of assessee or not. If the matter is referred to RU, the process according to clauses (xvii) to (xx) is to take place culminating into, a final draft assessment order (FDAO) by an Assessment Unit. 51. When draft assessment order (DAO) or final draft assessment order (FDAO) is prejudicial to the interest of the assessee, it entails an opportunity to show- cause pursuant to sub-clause (b) of clause (xvi), giving option under clause (xxii) to assessee of furnishing response to NFAC. 52. Procedure as contained in clause (xxiii) is to be followed in the cases where DAO or FDAO is prejudicial to the interest of assessee after notice has been served on the assessee. Page 50 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 53. It would be seen that, up to clause (xxii) there is no segregation or distinction in treatment to be given to assessees bifurcating them into two categories viz, 'eligible assessee' and others' (other than eligible assessee). 54. Sub-clause (a) of clause (xxiii) prescribes courses to be adopted by NFAC in the case of non-response to show cause notice by an assessee. Clause (xxiii) purports to treat the assessees according to their categorization under sub-clause (a), items (A) or (B). Clause (xxiii), sub clause (a), item (A) prescribes, in the case DAO or FDAO proposes variation prejudicial to an eligible assessee, to forward DAO or FDAO to the eligible assessee and in the case of others, pursuant item (B) NFAC may finalize DAO or FDAO and serve a copy of assessment order on the assessee. 55. Sub-clause (b) of clause (xxiii), appears to obligate NFAC, irrespective of categorization appearing under sub-clause (a) of clause (xxiii), where response from an assessee is received, to send the same to the AU. 56. If there is response to show-cause notice, sub clause (b) of clause (xxiii) comes into operation Page 51 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 pursuant to which matter goes to the AO and hearing assumes significance and is meaningful and the provision of sub-section (7) clause (vi) would come into play. In case of response after show-cause notice, the matter would go back to the AU and pursuant to clause (xxiv) the AU is supposed to take into account response of the assessee and then a revised DAO (RDAO) emerges for further treatment in accordance with clause (xxv). 57. It appears that under clause (xv) sub-clause (a) item (A) contemplates similar treatment to an eligible assessee as in item (A) under clause (a) of clause (xxiii) and the matter has to be forwarded to the assessee in case variations proposed in the case of eligible assessee are not prejudicial to the interest in comparison to DAO or FDAO and in case of other assessees under item (B) of sub-clause (a) of clause (xxv), similar treatment as accorded under item (B) of sub clause (a) of clause (xxiii) is given if the RDAO is not prejudicial in comparison to DAO or FDAO. However, in case of variations irrespective of whether assessee is eligible assessee or other, are prejudicial to the interest of assessee in comparison to DAO or FDAO, there is a further provision for opportunity to the assessee by serving notice, to receive treatment Page 52 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 mutatis mutandis in accordance with clauses (xxii), (xxiv) and (xv). 58. Sub-section (7) of section 144B for the purpose of faceless assessment under clause (vii) provides that in case where variation is proposed in draft assessment order, an opportunity is to be provided to the assessee by serving a notice to show-cause and the assessee or his representative can request for personal bearing so as to make his oral submissions or to present his case before the income-tax authorities in any unit. Further sub-section (7) provides under clause (ix) for hearing through video conferencing or video telephone including use of any telecommunication application software which support video conferencing or video telephone. 59. Sub section (7), clause (vii) stipulates as under :- \"(7) For the purpose of faceless assessment- (i) to (vi)... (vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment order, and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment Page 53 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income tax authority in any unit;\" 60. Plainly reading aforesaid provision would show that whenever assessee requests for personal hearing so as to make oral submissions or to present case, it is before income-tax authority in any unit. Sub- section (7), clause (vii) shows that request for personal hearing is to be approved by the authorities referred to therein upon its opinion that the request is covered by sub-clause clause (xii). Clause (xii) empowers authorities with prior approval of the Board to lay down the standards, procedures and processes for effective functioning of National Faceless Assessment Centre and others, inter alia, circumstances in which personal hearing referred to in clause (vii) shall be approved. 61. Legislature is not unwary of situations arising, requiring personal hearing and oral submissions and thus, has provided for the same under the faceless assessment scheme under section 144B. It emerges Page 54 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 that where response is given by the assessee to show- cause notice, the process under sub-section (7) would follow. 62. Learned senior counsel Mr.Pardiwala, during the course of hearing, had drawn attention to 'Standard Operating Procedure (SOP) for Assessment Unit under Faceless Assessment Scheme, 2019 under Circular FNo.PR.CCIT/SOP/2020-21 dated 19-11-2020 providing for under its clause T, that reasonable time is to be given to an assessee to comply with principles of natural justice. He had also referred to Circular F. No. PR.CCIT/NCAC/SOP/2020-21 dated 23-11-2020 to contend that personal hearing is to be allowed when there is response to DAO. 63. Principles of natural justice firmly run through fabric of section 144B(1) of the Income-tax Act, 1961. Whenever DAO, FDAO is prejudicial to the interest of assessee or RDAO is prejudicial to the interest of assessee in comparison to DAO or FDAO, upon a response to show- cause notice, personal hearing for oral submissions or to present its case before income tax authority is strongly entwined in the provisions on a request from an assessee unless it is absurd, strategised and/or intended to protract assessment etc. Page 55 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 It would also emerge from various decisions, referred to above, ordinarily, such a request would not be declined. Judgments cited on behalf of petitioner referred to hereinbefore give exposition on significance and importance of principles of natural justice. 64. Section 144B of the Income-tax Act, 1961 captioned 'Faceless Assessment commences vide its sub-section (1) with a non-obstante clause and compulsively requires assessment u/ss 143(3) and 144 shall be by prescribed procedure contained in sub- section (1) of section 144B in the cases referred to in sub-section (2) thereof. 65. Sub-section (9) of section 144B declares that assessment made under section 143(3) or under section 144(4) referable to sub-section (2) other than sub-section (8) on or after 1st day of April, 2021 shall be non est if such assessment is not made in accordance with the procedure laid down under section 144B. There is a telling/pronounced rigour, to follow the procedure under section 144B, lest the assessment would be non est. Page 56 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 66. Going by the provisions under section 144B, when hearing has been envisioned and incorporated, it is imperative to observe principles of natural justice as stipulated.” 1 8 .I n s u m m a t i o n , i t c a n b e d e d u c e d f r o m t h e p r o v i s i o n s , a s a l s o t h e d e c i s i o n s d i s c u s s e d t h a t S e c t i o n 1 4 4 B o f t h e I T A c t u n d e r h e a d i n g o f t h e F a c e l e s s A s s e s s m e n t p r o v i d e s f o r t h e a s s e s s m e n t u n d e r S e c t i o n 1 4 3 ( 3 ) a n d 1 4 4 t o b e c a r r i e d o u t a s p e r t h e p r o c e d u r e c o n t a i n e d i n S e c t i o n 1 4 4 B o f t h e I T A c t . A s n o t e d a b o v e , S u b - s e c t i o n ( 9 ) o f S e c t i o n 1 4 4 B o f t h e I T A c t i n n o u n c e r t a i n t e r m p r o v i d e s t h a t a f t e r t h e 1 s t d a y o f A p r i l , 2 0 2 1 , t h e a s s e s s m e n t m a d e u n d e r S e c t i o n 1 4 3 ( 3 ) o r u n d e r S e c t i o n 1 4 4 ( 4 ) o f t h e I T A c t s h a l l b e n o n e s t , w h e n n o t m a d e i n Page 57 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 a c c o r d a n c e w i t h t h e p r o c e d u r e d e t a i l e d i n S e c t i o n 1 4 4 B o f t h e I T A c t . T h e o p p o r t u n i t y o f h e a r i n g a s e n v i s a g e d u n d e r S e c t i o n 1 4 4 B o f t h e I T A c t a l s o s h a l l n e e d t o b e s c r u p u l o u s l y a d h e r e d t o a s t h e p r i n c i p l e s o f n a t u r a l j u s t i c e a r e u n f a i l i n g l y i n g r a i n e d i n t h i s p r o v i s i o n . 1 9 . R e v e r t i n g t o t h e f a c t s o n t h e m a t t e r o n h a n d s , i t i s q u i t e c l e a r t h a t t h e n o t i c e a l o n g w i t h t h e d r a f t a s s e s s m e n t o r d e r w a s g i v e n t o t h e p e t i t i o n e r o n 0 4 . 0 4 . 2 0 2 1 , t h e r e s p o n s e t o t h e s a m e w a s g i v e n w i t h i n t w o d a y s b y t h e p e t i t i o n e r i n t h e m o d e a s p r e s c r i b e d u n d e r t h e L a w . I t a l s o f i l e d f u r t h e r r e p l y t o t h e s a i d n o t i c e o n 0 8 . 0 4 . 2 0 2 1 a s w e l l a s o n 1 5 . 0 4 . 2 0 2 1 i n c o n t i n u a t i o n o f t h e f i r s t r e p l y o f 0 6 . 0 4 . 2 0 2 1 . I t i s a l s o a m a t t e r o f r e c o r d Page 58 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t h a t t h e r e i s n o r e f e r e n c e o f t h e r e q u e s t m a d e o n 0 7 . 0 4 . 2 0 2 1 i n a s u b s e q u e n t r e p l y m a d e i n c o n t i n u i t y o n t h e p a r t o f t h e p e t i t i o n e r o f 0 8 . 0 4 . 2 0 2 1 a s w e l l a s 1 5 . 0 4 . 2 0 2 1 . H o w e v e r , t h a t w o u l d n o t i n a n y m a n n e r q u e s t i o n h i s c o n d u c t o f r e q u e s t i n g f o r t h e p e r s o n a l h e a r i n g i n a s m u c h a s t h a t a s p e c t i s n e i t h e r d i s p u t e d n o r b e l i e d f r o m t h e m a t e r i a l w h i c h i s a v a i l a b l e f r o m t h e e - p o r t a l o f t h e I n c o m e T a x D e p a r t m e n t . I n f a c t i n t h e a f f i d a v i t - i n - r e p l y i t s e l f t h e r e i s a r e f e r e n c e o f s u c h a r e q u e s t m a d e b y t h e p e t i t i o n e r w h i c h a c c o r d i n g t o t h e r e s p o n d e n t - r e v e n u e i s i m p e r m i s s i b l e a s h e h a s n o t e x e r c i s e d t h e o p t i o n w h i l e r e s p o n d i n g t o t h e n o t i c e a n d t h e d r a f t a s s e s s m e n t o r d e r o n 0 6 . 0 4 . 2 0 2 1 . 1 9 . 1 A c c o r d i n g t o t h e r e v e n u e , o n Page 59 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 0 6 . 0 4 . 2 0 2 1 w h i l e r e s p o n d i n g t o t h e r e q u e s t , t h e r e w o u l d h a v e b e e n a h y p e r l i n k A V A I L A B L E w h i c h h e o u g h t t o h a v e c l i c k e d a n d w h i c h h e h a d m i s s e d o u t a n d t h e r e f o r e , i f h e m a k e s a n y s u b s e q u e n t r e q u e s t f o r t h e s a m e , t h e s a m e i s n o t s u s t a i n a b l e . 2 0 . W e n o t i c e f r o m t h e c l a u s e ( x i i ) o f s u b - s e c t i o n ( 7 ) o f S e c t i o n 1 4 4 B o f t h e I T A c t l a y i n g d o w n t h e s t a n d a r d s , p r o c e d u r e s a n d p r o c e s s e s f o r e f f e c t i v e f u n c t i o n i n g o f t h e N a t i o n a l F a c e l e s s A s s e s s m e n t C e n t r e , R e g i o n a l F a c e l e s s A s s e s s m e n t C e n t r e a n d t h e U n i t s e t u p i n a n a u t o m a t e d a n d m e c h a n i s e d e n v i r o n m e n t b y t h e P r i n c i p a l C h i e f C o m m i s s i o n e r o r t h e P r i n c i p a l D i r e c t o r G e n e r a l . T h e r e i s n o t h i n g o n t h e r e c o r d w h i c h i n s i s t s t h a t o n t h e d a y o n w h i c h t h e r e p l y i s g i v e n , t h e r e i s a n y p r o h i b i t i o n t o Page 60 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 t e n d e r t h e s u b s e q u e n t r e p l y i n c o n t i n u i t y . I t a l s o d o e s n o t a n y w h e r e p r o h i b i t m a k i n g o f s u c h a r e q u e s t t h r o u g h t h e e - p o r t a l o f t h e d e p a r t m e n t . 2 0 . 1 P a r a - 1 1 o f E A s s e s s m e n t S c h e m e , 2 0 1 9 n o t i f i e d o n 1 2 . 0 9 . 2 0 1 9 a s m o d i f i e d o n 1 3 . 0 8 . 2 0 2 0 p r o v i d e s t h a t n o p e r s o n a l a p p e a r a n c e i n t h e C e n t r e o r u n i t w o u l d b e t h e r e b u t r e q u e s t f o r p e r s o n a l h e a r i n g c a n b e m a d e b y t h e a s s e s s e e o r h i s a u t h o r i s e d r e p r e s e n t a t i v e i n F a c e l e s s A s s e s s m e n t S c h e m e . 2 1 . T h e F A Q s o f t h e I n c o m e T a x D e p a r t m e n t s h o w s t h e p r o c e s s f o r v i d e o c o n f e r e n c i n g f a c i l i t y a n d i n a q u e s t i o n a s t o w h a t i s t h e p r o c e s s , i t a n s w e r t h i s w i s e . “ A n s w e r : V S s t a n d s f o r ‘ v i d e o c o n f e r e n c i n g ’ . U s i n g t h e V C f a c i l i t y , a n a s s e s s e e i s e n a b l e t o e x p r e s s o r s u b m i t o n e ’ s r e s p o n s e o r a l l y b e f o r e a n I n c o m e T a x A u t h o r i t y w h o h a s i n i t i a t e d t h e p r o c e e d i n g s a n d e x p e c t t h e r e s p o n s e f r o m t h e u s e r . T h i s f a c i l i t y h a s b e e n e n a b l e d b y t h e d e p a r t m e n t a s a s u b s t i t u t e f o r p e r s o n a l Page 61 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 a p p e a r a n c e / h e a r i n g b e f o r e a n I n c o m e T a x A u t h o r i t y . T h e f a c i l i t y f o r o r a l s u b m i s s i o n i s i n a d d i t i o n t o s u b m i t t i n g r e s p o n s e i n w r i t i n g . ” 2 1 . 1 I t f u r t h e r p r o v i d e s f o l l o w i n g q u e s t i o n h o w t o c h e c k t h e s t a t u s o f V C r e q u e s t r a i s e d ? A n s w e r :V C r e q u e s t r a i s e d b y a s s e s s e e w i l l e i t h e r b e a p p r o v e d o r r e j e c t e d . I f a p p r o v e d , t h e n t h e d e p a r t m e n t w i l l s e n d a n e m a i l a n d S M S c o m m u n i c a t i o n i n f o r m i n g t h e d a t e a n d t i m e f o r V C a l o n g w i t h V C U R L . T h e V C d e t a i l s w i l l b e d i s p l a y e d i n t h e u s e r ’ s e - p r o c e e d i n g V C N o t i c e s c h e d u l e . T h e l o g i n p a s s w o r d w i l l b e s h a r e d 2 h o u r s b e f o r e t h e s c h e d u l e d t i m e o f V C o n t o t h e r e g i s t e r e d m o b i l e n u m b e r . Page 62 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 I f r e j e c t e d , t h e n r e j e c t i o n r e m a r k s a n d r e j e c t i o n l e t t e r w i l l b e d i s p l a y e d t o t h e a s s e s s e e i n V C N o t i c e s c h e d u l e i n a d d i t i o n t o e m a i l a n d S M S c o m m u n i c a t i o n . B e l o w a r e t h e s t e p s t o c h e c k t h e s t a t u s o f V C r e q u e s t :  L o g i n t o e - f i l i n g e - P r o c e e d i n g S e l e c t →e-Proceeding→Select →e-Proceeding→Select P r o c e e d i n g N a m e →e-Proceeding→Select  C l i c k V C h y p e r l i n k u n d e r t h e V i d e o c o n f e r e n c i n g c o l u m n . O n c l i c k o f V C h y p e r l i n k , t h e d e t a i l s o f V C r e q u e s t s u b m i t t e d w i l l b e d i s p l a y e d . 2 1 . 2 A c c o r d i n g t o t h e p e t i t i o n e r , t h e r e w a s n o h y p e r l i n k f o r s e e k i n g t h e v i d e o c o n f e r e n c i n g a g a i n s t t h e n o t i c e i s s u e d b y t h e d e p a r t m e n t . 2 2 . H a v i n g n o t i c e d t h a t i t w a s a t i m e w h e n t h i s r e g i m e o f f a c e l e s s a s s e s s m e n t h a d Page 63 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 m e r e l y b e g u n a n d t h e r e w e r e m a n y h i c c u p s i n a b s e n c e o f t h e r e v e n u e h a v i n g s h o w n t h a t t h e l i n k w a s c r e a t e d a t t h e r e l e v a n t p o i n t o f t i m e a n d i n a b s e n c e o f a n y m a t e r i a l o n t h a t i s s u e , w h e n i t r e c o g n i s e s t h e f a c t t h a t i t h a d r e c e i v e d t h e r e q u e s t o f 0 7 . 0 4 . 2 0 2 1 , t h e r e w a s n o e a r t h l y r e a s o n f o r i t t o h a v e i g n o r e d i t a n d n o t t o a v a i l t h e h e a r i n g . 2 3 . T h e s u b s e q u e n t G u i d e l i n e s f o r p e r s o n a l h e a r i n g t h r o u g h t h e v i d e o c o n f e r e n c i n g r e c o m m e n d i n g d o s a n d d o n ’ t s c a n n o t b e t a k e n i n t o c o n s i d e r a t i o n b y t h i s C o u r t f o r t h e s i m p l e r e a s o n t h a t t h e a u t h o r i t y w h i c h i s s u e d a n d t h e d a t e f r o m w h i c h t h e y h a v e c o m e i n t o p r a c t i c e i s m i s s i n g . M o r e o v e r , i t i s n o t e v e n k n o w n w h e t h e r t h i s i s f o r t h e i n t e r n a l Page 64 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 c i r c u l a t i o n a s i n t h e p u b l i c d o m a i n t h e s e G u i d e l i n e s h a v e n o t c o m e , t h e r e f o r e , w h a t p r e s e n t l y w o u l d g u i d e t h e c a s e o f t h e p e t i t i o n e r i s t h e F A Q s a v a i l a b l e f o r s e e k i n g t h e v i d e o c o n f e r e n c i n g a n d s e e k i n g t h e a d j o u r n m e n t o f t h e v i d e o c o n f e r e n c i n g , w e h o l d t h a t t h e r e h a s b e e n a v i o l a t i o n w h e n t h e m o d i f i e d a s s e s s m e n t o r d e r w a s t o b e p a s s e d b y m a k i n g a n a d d i t i o n o f n e a r l y 1 0 7 C r o r e a n d w h e n a s p e c i f i c r e q u e s t h a d g o n e o n t h e 3 r d d a y o f i s s u a n c e o f n o t i c e f r o m t h e p e t i t i o n e r a n d w h e n t h e t i m e f o r f r a m i n g t h e a s s e s s m e n t w a s n o t g e t t i n g b a r r e d , n o n - a v a i l m e n t o f t h e o p p o r t u n i t y o f t h e p e r s o n a l h e a r i n g s u r e l y h a s r e s u l t e d i n t o t h e v i o l a t i o n o f t h e p r i n c i p l e o f n a t u r a l j u s t i c e a n d t h e r e f o r e , t h e i n d u l g e n c e w o u l d b e n e c e s s a r y . Page 65 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 2 4 . A t t h i s s t a g e , t h e d e c i s i o n w h i c h i s s o u g h t t o b e p r e s s e d i n t o s e r v i c e b y t h e r e v e n u e i f o f D h a r a m p a l S a t y a p a l L i m i t e d v s . D e p u t y C o m m i s s i o n e r o f C e n t r a l E x c i s e , G a u h a t i a n d o t h e r s , r e p o r t e d i n ( 2 0 1 5 ) 8 S C C 5 1 9 w h e r e t h e A p e x C o u r t h a s h e l d t h a t e v e n w h e n t h e r e i s a n i n f r a c t i o n o f p r i n c i p l e o f n a t u r a l j u s t i c e , t h e n , f u r t h e r q u e s t i o n t h a t n e e d s t o b e a d d r e s s e d i s a s t o w h e t h e r t h e p u r p o s e w o u l d b e s u b - s e r v e d i n r e m i t t i n g t h e c a s e t o t h e a u t h o r i t y t o m a k e f r e s h d e m a n d o f a m o u n t r e c o v e r a b l e , o n l y a f t e r i s s u i n g n o t i c e t o s h o w c a u s e t o t h e a p p e l l a n t . A s w h a t i s n e c e s s a r y t o b e c o n s i d e r e d i s t h e p r i n c i p l e o f p r e j u d i c e a s w e l l a s “ t h e u s e l e s s f o r m a l i t y t h e o r y ” . R e l e v a n t p a r a g r a p h s w o u l d n e e d r e p r o d u c t i o n . Page 66 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 “44. At the same time, it cannot be denied that as far as courts are concerned, they are empowered to consider as to whether any purpose would be served in remanding the case keeping in mind whether any prejudice is caused to the person against whom the action is taken. This was so clarified in ECIL itself in the following words: \"31. Hence, in all cases where the enquiry officer's report is not furnished to the delinquent employee in the disciplinary proceedings, the courts and tribunals should cause the copy of the report to be furnished to the aggrieved employee if he has not already secured it before coming to the court/tribunal and given the employee an opportunity to show how his or her case was prejudiced because of the non-supply of the report. If after hearing the parties, the court/tribunal comes to the conclusion that the non-supply of the report would have made no difference to the ultimate findings and the punishment given, the court/tribunal should not interfere with the order of punishment. The court/tribunal should not mechanically set aside the order of punishment on the ground that Page 67 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 the report was not furnished as is regrettably being done at present. The courts should avoid resorting to short cuts. Since it is the courts/tribunals which will apply their judicial mind to the question and give their reasons for setting aside or not setting aside the order of punishment, (and not any internal appellate or revisional authority), there would be neither a breach of the principles of natural justice nor a denial of the reasonable opportunity. It is only if the court/tribunal finds that the furnishing of the report would have made a difference to the result in the case that it should set aside the order of punishment.\" 45. Keeping in view the aforesaid principles in mind, even when we find that there is an infraction of principles of natural justice, we have to address a further question as to whether any purpose would be served in remitting the case to the authority to make fresh demand of amount recoverable, only after issuing notice to show cause to the appellant. In the facts of the present case, we find that such an exercise would be totally futile having regard to the law laid down by this Court in R.C. Tobacco. Page 68 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 46. To recapitulate the events, the appellant was accorded certain benefits under the Notification dated 8-7-1999. This Notification stands nullified by Section 154 of the 2003 Act, which has been given retrospective effect. The legal consequence of the aforesaid statutory provision is that the amount with which the appellant was benefited under the aforesaid Notification becomes refundable. Even after the notice is issued, the appellant cannot take any plea to retain the said amount on any ground whatsoever as it is bound by the dicta in R.C. Tobacco. Likewise, even the officer who passed the order has no choice but to follow the dicta in R.C. Tobacco. It is important to note that as far as quantification of the amount is concerned, it is not disputed at all. In such a situation, issuance of notice would be an empty formality and we are of the firm opinion that the case stands covered by \"useless formality theory\". 47. In Escorts Farms Ltd. v. Commr., this Court, while reiterating the position that rules of natural justice are to be followed for doing substantial justice, held that, at the same time, it would be of no use if it amounts to completing a mere ritual of hearing without possibility of any change in the decision of the case on merits. It was so explained in the Page 69 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 following terms: \"64. Right of hearing to a necessary party is a valuable right. Denial of such right is serious breach of statutory procedure prescribed and violation of rules of natural justice. In these appeals preferred by the holder of lands and some other transferees, we have found that the terms of government grant did not permit transfers of land without permission of the State as grantor. Remand of cases of a group of transferees who were not heard, would, therefore, be of no legal consequence, more so, when on this legal question all affected parties have got full opportunity of hearing before the High Court and in this appeal before this Court. Rules of natural justice are to be followed for doing substantial justice and not for completing a mere ritual of hearing without possibility of any change in the decision of the case on merits. In view of the legal position explained by us above, we, therefore, refrain from remanding these cases in exercise of our discretionary powers under Article 136 of the Constitution of India.\" Page 70 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 2 5 . A c c o r d i n g t o u s , t h e r i g h t o f h e a r i n g b e i n g a v a l u a b l e r i g h t a s h e l d b y t h e A p e x C o u r t i n c a s e o f M / s . E s c o r t s F a r m s ( R a m g a r h ) L t d . ) v s . C o m m i s s i o n e r , K u m a o n D i v i s i o n , N a i n i t a l , U . P . & O r s . a n d d e n i a l o f s u c h r i g h t b e i n g a s e r i o u s b r e a c h o f s t a t u t o r y p r o c e d u r e p r e s c r i b e d a s a l s o b e i n g v i o l a t i o n o f r u l e s o f n a t u r a l j u s t i c e , t h i s p e t i t i o n m e r i t s a l l o w a n c e . 2 6 . T h e r e f o r e , n o t o n l y o n t h e g r o u n d o f s e r i o u s p r e j u d i c e f o r w a n t o f o p p o r t u n i t y o f h e a r i n g b u t a l s o w h e n t h e r e i s a h u g e a d d i t i o n s o f t a x b y w a y o f a d r a f t a s s e s s m e n t o r d e r , w h i c h e v e n t u a l l y b e c o m e t h e f i n a l a s s e s s m e n t o r d e r , a s f r a m e d b y t h e r e s p o n d e n t o n 2 1 . 0 4 . 2 0 2 1 , t h i s C o u r t n e e d s t o i n t e r f e r e i n t h e i m p u g n e d a s s e s s m e n t o r d e r a l o n g w i t h i n t e r f e r e n c e i n t h e c o n s e q u e n t i a l d e m a n d o f t a x e s a n d o f p e n a l t y Page 71 of 72 C/SCA/7477/2021 JUDGMENT DATED: 11/10/2021 a n d t h e s a m e a r e q u a s h e d a n d s e t a s i d e . T h e m a t t e r i s r e m a n d e d b a c k t o t h e A s s e s s i n g O f f i c e r , w h o s h a l l g r a n t a n o p p o r t u n i t y o f p e r s o n a l h e a r i n g t o t h e p e t i t i o n e r b y w a y o f t h e v i d e o c o n f e r e n c i n g a n d t h e r e a f t e r p a s s a r e a s o n e d o r d e r i n a c c o r d a n c e w i t h l a w . 2 6 .W i t h t h e a b o v e d i r e c t i o n , p r e s e n t p e t i t i o n i s a l l o w e d a n d d i s p o s e d o f a c c o r d i n g l y . 2 7 .O v e r a n d a b o v e t h e r e g u l a r m o d e o f s e r v i c e , d i r e c t s e r v i c e i s a l s o p e r m i t t e d t h r o u g h s p e e d p o s t a s w e l l a s e - m o d e . (SONIA GOKANI, J) (RAJENDRA M. SAREEN,J) M.M.MIRZA Page 72 of 72 "