Through income-tax portal, the AO issued show cause to the assessee to file its objections within 5 days without referring to granting of personal hearing. As the assessee failed to file its response, the AO passed assessment order which was challenged in writ. Taking note of Legislative Intent that section 144B of the Act was to provide an opportunity of being heard to the assessee before passing any orders, which are prejudicial to their rights/interests. The High Court held that 5 days period granted to file response without providing for personal hearing was insufficient and period of at least 21 days should have been given for filing reply. The Court also held that it is bounden duty of the Assessing Officer to pass a detailed order, providing reasons for rejection of the contention of the assessee. The assessment order passed was set aside and matter was remanded to the AO for fresh consideration.(AY.2017-18)(SJ)
Gemini Film Circuit v. NFAC, Delhi. (2023) 157 taxmann.com 445 (2024) 461 ITR 13 (Mad)(HC)
S. 144B : Faceless Assessment-Principles of natural justice-At least 21 days time should be given to file reply-Legislative Intent is to provide an opportunity of being heard to the assessee before passing any orders, which are prejudicial to their rights/interests-It is bounden duty of the Assessing Officer to pass a detailed order, providing reasons for rejection of the contention of the assessee-Matter restored to the file of the AO as the assessee was granted time of 5 days only without referring to opportunity of personal hearing.[Art. 226]