On writ the Court held that the assessee had given up her right to challenge the notice issued under section 148A(b), the order passed under section 148A(d) and the issuance of notice under section 148 by the jurisdictional Assessing Officer. The challenge was confined only to the show-cause notice proposing variation to the income and the order of assessment under section 147 read with sections 144 and 144B for the assessment year 2019-20. The show-cause notice had been issued on February 13, 2024 and the assessee was afforded an opportunity to respond by 17.34 hours of February 20, 2024. Although, seven days had been provided, such notice had been digitally signed on February 13, 2024 at around 18.37 hours and therefore, the assessee had not been afforded seven clear working days to respond to the notice. The notice was not in consonance with the Standard Operating Procedure, dated August 3, 2022 circulated under the faceless assessment provision of section 144B by the Commissioner, National Faceless Assessment Centre. That the object of show cause was to offer an opportunity to respond. Under clause N. 1. 3 of the Standard Operating Procedure it had been provided that the principles of natural justice must be followed and in clause N. 1.3.1 thereof the response time for the show-cause notice had been prescribed as seven days. Though it had been stated that keeping in view the limitation date for completion of assessment, the response time could be curtailed, in the assessee’s case limitation for completion of assessment proceeding had not intervened for not providing of seven clear days response time. A festival holiday coupled with the short response time had made it unviable for the assessee to offer response, within the specified time which constituted violation of principles of natural justice. Hence the assessment order, passed without considering the assessee’s response, was set aside. The matter was remanded back to the Faceless Assessment Unit for considering the response of the assessee to be submitted within the stipulated time. (paras 9, 10)(AY. 2019-20)(SJ)
Sreelekha Banerjee v. Dy. CIT (2024)467 ITR 1 /300 Taxman 368 (Cal)(HC)
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Faceless Assessment-Violating principles of natural Justice-Failure to grant minimum of seven clear working days to respond to show-cause notice-Non-compliance with standard operating procedure-Matter remanded to faceless assessment unit to pass orders after considering reply of assessee. [S.144, 144B(6)(vii), 147, 148, 148A(b), 148A(d), Art. 226]