NIMITYA PROMOTERS PRIVATE LIMITED vs. NATIONAL FACELESS ASSESSMENT CENTRE & ANR.

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W.P.(C)/12619/2022HC DelhiDLHC01032899202206 September 2022Author: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the impugned assessment order dated March 29, 2022, needed to be set aside as it was passed without serving any mandatory show cause notice-cum-draft assessment order upon the Petitioner. Consequently, the assessment order and the demand notice issued under Section 156 of the Act were set aside. Given that the notice was issued post-April 1, 2021, and with the consent of the parties, the matter was remanded back to the Assessing Officer. The Assessing Officer was directed to issue a show cause notice to the Petitioner under Section 148A(b) of the Act along with relevant documents and materials within four weeks. The Petitioner was granted four weeks thereafter to file a response. The Assessing Officer was to pass a fresh assessment order in accordance with law. The Court clarified that it had not commented on the merits of the controversy, leaving the rights and contentions of all parties open.

What were the facts?

The Petitioner, Nimitya Promoters Private Limited, filed a writ petition challenging an assessment order dated March 29, 2022, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, and a notice dated March 31, 2021, issued under Section 148 of the Act for Assessment Year 2015-16. The Petitioner contended that the Section 148 notice was actually issued on April 1, 2021, and was therefore without jurisdiction as the mandatory procedure under Section 148A was not followed. Furthermore, the assessment order was allegedly passed without serving a mandatory show cause notice-cum-draft assessment order and without providing an opportunity of hearing, violating Section 144B and principles of natural justice. The Petitioner only became aware of a demand of Rs. 60,30,610/- on June 18, 2022, and received unsigned notices.

What were the issues?

1. Whether the notice issued under Section 148 of the Act, dated March 31, 2021, is without jurisdiction and inconsistent with the Act due to non-compliance with the mandatory procedure under Section 148A? 2. Whether the assessment order passed under Section 147 read with Section 144B of the Act is illegal and bad in law for being passed without serving a mandatory show cause notice-cum-draft assessment order and without providing an opportunity of hearing? Assessee's Contentions: - The Section 148 notice was issued on April 1, 2021, not March 31, 2021, rendering it without jurisdiction as Section 148A was not followed. - The assessment order was passed without the mandatory show cause notice-cum-draft assessment order and hearing, violating Section 144B and principles of natural justice. - The Petitioner only learned of the demand on June 18, 2022, and received unsigned notices without a DIN. Revenue's Contentions: - The notice was issued on March 31, 2021.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148,Section 148A,Section 156

AI-generated summary — verify with the full judgment below

$~28 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 12619/2022 & C.M.No.38230/2022 NIMITYA PROMOTERS PRIVATE LIMITED ..... Petitioner Through: Mr.Salil Kapoor with Ms.Ananya Kapoor and Mr.Sumit Lalchandani, Advocates. versus NATIONAL FACELESS ASSESSMENT CENTRE & ANR. ..... Respondents Through: Mr.Abhishek Maratha, Sr.Standing Counsel for the Revenue. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA O R D E R % 06.09.2022 1. Present writ petition has been filed challenging the Assessment Order passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (‘the Act’) dated 29th March, 2022 and the Notice issued under Section 148 of the Act dated 31st March, 2021 for the Assessment Year 2015-16. 2. Learned counsel for the Petitioner states that the impugned notice dated 31st March, 2021 issued under Section 148 of the Act was actually issued on 01st April, 2021. He submits that impugned notice is without jurisdiction and inconsistent with the provisions of the Act as the mandatory procedure under Section 148A had not been followed by the Respondents in the present case. 3. He also states that the impugned assessment order under Section 147 read with Section 144B of the Act had been passed without serving upon the

Petitioner the mandatory show cause notice-cum-draft assessment order and without providing any opportunity of hearing and therefore, the same was patently illegal, bad in law and had been passed without following the mandate of Section 144B of the Act and without adhering to the principles of natural justice. 4. He further states that the Petitioner came to know about an outstanding demand of Rs.60,30,610/- for the Assessment Year 2015-16 only on 18th June, 2022 when the Petitioner logged into its Income Tax Portal. He states that no assessment order/show cause notice/demand notice under Section 156 of the Act in relation to reassessment proceedings for Assessment Year 2015-16 was ever served upon the Petitioner. 5. He further states that upon contacting the Income Tax Ward 18(3), the Petitioner was supplied with a copy of the notice dated 31st March, 2021 issued under Section 148 of the Act and a show cause notice dated 23rd March, 2022, both of which were unsigned. He emphasises that the show cause notice which was provided to the Petitioner did not have any Documentation Identification Number ("DIN"). He submits that the Petitioner was also provided a copy of the assessment order dated 29th March, 2022 passed under Section 147 read with Section 144B of the Act along with notice of demand issued under Section 156 of the Act and computation sheet on 18th June, 2022. 6. Issue notice. Mr.Abhishek Maratha, learned senior standing counsel accepts notice on behalf of the Respondents-Revenue. He states that the notice in the present case was issued on 31st March, 2021 and not on 01st April, 2021.

7.

In rejoinder, learned counsel for the Petitioner has drawn this Court’s attention to page No.44 of the paper book, which is a screenshot of Petitioner’s account on E-filing portal of the Department, which mentions the date of issue of notice under Section 148 of the Act as 01st April, 2021. 8. Having heard learned counsel for the parties, this Court is of the view that as the impugned assessment order has been passed without serving any mandatory show cause notice-cum-draft assessment order upon the Petitioner, the same needs to be set aside. 9. Accordingly, the impugned assessment order dated 29th March, 2022 and the demand notice issued under Section 156 of the Act are set aside. As the notice had been issued post 01st April, 2021, with consent of the parties, the matter is remanded back to the Assessing Officer with a direction to issue a show cause notice to the Petitioner under Section 148A(b) of the Act along with relevant documents and materials within four weeks. The Petitioner shall be at liberty to file a response to the said notice within four weeks thereafter. The Assessing Officer shall thereafter pass a fresh assessment order in accordance with law. 10. With the aforesaid directions, present writ petition along with pending application stands disposed of. This Court clarifies that it has not commented on the merits of the controversy. The rights and contentions of all the parties are left open. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J SEPTEMBER 2, 2022 KA

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