Order challenged on ground of non-compliance of Sec. 144B(9) dismissed: HC

Case Details: Sumeet Gems and Jewellers (P.) Ltd. v. PCCIT, NFAC, Delhi - [2022] 141 taxmann.com 510 (Chhattisgarh) 

Judiciary and Counsel Details

• • Parth Prateem Sahu, J.
  • Neelabh Dubey & Ms Smiti Sharma, Advs. for the Petitioner.
  • Amit Chaudhary, Adv. for the Respondent.

Facts of the Case

Assessee-company, engaged in the jewellery business, had filed its return of income and was selected for scrutiny. Subsequently, an assessment order was passed under Faceless Assessment Scheme requiring the assessee to pay a certain amount, and proceeding for imposition of penalty under section 271AAC(2) was also initiated.

The assessee contended that section 144B, inserted by Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 with effect from 1-4-2021, provided a detailed procedure to be followed by the department for completing assessment under the Faceless Scheme. But, the same was not followed by the department.

The instant writ petition was filed by the assessee seeking to quash the assessment order passed and consequent proceedings initiated without the issuance of a show-cause notice or draft assessment order on the ground that same were in violation of specific provisions contained under section 144B.

High Court Held

The High Court held that sub-section (9) of section 144B required the department to follow the procedure in respect of assessments made on or after 01-04-2021. However, the said sub-section (9) was omitted with effect from 1-4-2021. Thus, the ground raised by the assessee was not maintainable as said sub-section stood omitted from the statute book with retrospective effect. Further, since the assessee had the alternative statutory remedy of filing an appeal before appellate authority under section 246A wherein other issues raised in the petition could be considered and decided, the writ petition filed by the assessee was dismissed.

List of Cases Referred to

• • Bharat Aluminium Co. Ltd. v. Union of India [2022] 134 taxmann.com 187/285 Taxman 447/442 ITR 101 (Delhi) (para 2)
  • Satia Industries Ltd. v. National Faceless Assessment Center [2021] 131 taxmann.com 134/437 ITR 126 (Delhi) (para 2)
  • Gandhi Realty (India) (P.) Ltd. v. Assistant/Joint/Deputy/Assistant Commissioner of Income Tax/ITO [2021] 133 taxmann.com 83/[2022] 441 ITR 316 (Guj.) (para 2).