Rajubhai Bababhai Desai V. National Faceless Assessment Centre, Govt. of India

SCA/8528/2022

AI Insights

The case involves Rajubhai Bababhai Desai, the petitioner, who challenged an assessment order issued by the National Faceless Assessment Centre, Government of India. The petitioner argued that he was not provided an opportunity for a personal hearing before the assessment order was passed, which was a procedural requirement under Section 144B of the Income-Tax Act, 1961. The assessment order, which demanded a tax of Rs.11,75,156, was based on the non-filing of income return and the sale of penny stock shares. The court's decision focused on the procedural impropriety of not granting a hearing, rather than the merits of the tax assessment itself.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 798148 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 06-12-2022
• Assessment Year: misc
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: NIKUNT RAVAL
• Assessee Lawyers: S UDHIR M EHTA; SHAILEE MEHTA
• Keywords: Assessment Order; Best Judgment Assessment; Non-est; Personal hearing; Video Conference
• Section: 148; 144; 144B; 156

Judgement Text

"C/SCA/8528/2022 ORDER DATED: 06/12/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 8528 of 2022 ========================================================== RAJUBHAI BABABHAI DESAI Versus NATIONAL FACELESS ASSESSMENT CENTRE, GOVT. OF INDIA ========================================================== Appearance: MR SUDHIR M MEHTA(2058) for the Petitioner(s) No. 1 MS SHAILEE S MEHTA(5873) for the Petitioner(s) No. 1 NOTICE NOT RECD BACK for the Respondent(s) No. 1 NOTICE SERVED for the Respondent(s) No. 2 ========================================================== CORAM:HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MRS. JUSTICE MAUNA M. BHATT Date : 06/12/2022 ORAL ORDER (PER : HONOURABLE MS. JUSTICE SONIA GOKANI) 1. The petitioner is before this Court making a grievance against the respondents for not availing the opportunity of hearing with the following prayers: 7. In the above-said premises, the Petitioner prays that :- (A) This Hon'ble Court may be pleased to issue a writ of Certiorari or any appropriate writ, orders or directions and thereby be pleased to quash and set aside the impugned assessment order 21.03.2022. Page 1 of 4 C/SCA/8528/2022 ORDER DATED: 06/12/2022 (B) Pending admission, hearing and final disposal of this petition, Hon'ble Court may kindly be pleased to stay the operation and implementation of the impugned assessment order 21.03.2022 and recovery. (C) This Hon'ble Court may be pleased to grant such order and further ad-interim relief as may be deemed fit by this Hon'ble Court, in the interest of justice.” 2. The petitioner filed the return of income for the assessment year 2017-2018. A draft assessment order was sent by respondent No.1 on 14.3.2022. Vide notice dated 14.3.2022, it was observed that respondent No.1 would invoke the powers conferred under Section 144 of the Income-Tax Act, 1961 and initiate the best judgment assessment on the count that the petitioner did not file the return of income in response to the notice under Section 148 of the Act. The variation was also proposed on account of sale of penny stock share. In response to the same, the petitioner on 16.3.2022 explained various details, the details which is not necessary to be gone into. However, he requested respondent No.1 to provide an opportunity of personal hearing through video conference before taking any adverse inference. 3. A show cause notice was issued on 15.3.2022 as to why the proposed variation be not made without availing an Page 2 of 4 C/SCA/8528/2022 ORDER DATED: 06/12/2022 opportunity or replying to the request of the petitioner, the order of assessment came to passed by respondent No.1 and he had made demand of Rs.11,75,156/- under Section 156 of the Act. 4. This aggrieved the petitioner who has urged that the procedure contemplated under Section 144B of the Act provides for the hearing and one of the provisions entitle the petitioner to ask for the hearing through video conference. The request since has been ignored by the respondent, he has approached this Court with the aforementioned prayers. 5. On issuance of notice, the learned senior standing counsel Mr. Nikunt Raval appears. 6. It is not being disputed that the opportunity of hearing is not granted. On the basis of the information received in respect of assessee, verification of material received from DDIT (Inv.) Unit-1(3), assessing officer has finalized the assessment order dated 21.3.2022, which is impugned in the instant case. This being a clear violation of procedure laid down under Section 144B (9), the order is non-est in the eyes of law and hence, the petition is allowed quashing and setting aside the order of assessment. The officer concerned shall take up the matters from the stage where the request was made for Page 3 of 4 C/SCA/8528/2022 ORDER DATED: 06/12/2022 availing the opportunity of hearing. Let within two weeks the request be made on the part of the petitioner which shall be responded by the officer concerned within two weeks. The entire process of adjudicating the matter shall be completed within twelve weeks period. 7. This disposal shall not come in the way of the either side. It is made clear that this Court has not entered into the merit of the matter. The matter shall be decided accordingly. (SONIA GOKANI, J) (MAUNA M. BHATT,J) NAIR SMITA V. Page 4 of 4 "