Shri Venkatesh Refineries Limited Through Itsmanaging Director Prasad Dinesh Kabreversusdeputy Commissioner Of Income Tax Circle 1And Others v. Ghuge

*1* 906wp2172o23 IN THE HIGH COURT OF JUDICATURE AT BOMBAYBENCH AT AURANGABAD WRIT PETITION NO.2172 OF 2023 SHRI VENKATESH REFINERIES LIMITED THROUGH ITSMANAGING DIRECTOR PRASAD DINESH KABREVERSUSDEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1AND OTHERS ... Advocate for the Petitioner : Shri Ajay R. Singh i/by Shri PawarAjay D. Advocate for Respondents 1 to 3 : Shri A.R. KaleAdvocate for Respondent 5 : Shri R.R. Bangar ... CORAM : RAVINDRA V. GHUGE & Y. G. KHOBRAGADE, JJ. DATE :- 23[rd] June, 2023 Per Court :- 1.The Petitioner has put forth prayer clauses A, B, C and D as under:- “A) that this Hon'ble Court be pleased to issue aWrit of Certiorari or any other writ order ordirection under Article 226 of the Constitutionof India calling for the records of the caseleading to passing of the impugned order andafter going through the same and examining thequestion of legality thereof quash, cancel andset aside the impugned assessment order dated:17th December 2022 (Exhibit - 'P') passedunder section 143 (3) rws 144B of the Incometax Act, 1961 by the Respondent No. 2 as well *2* 906wp2172o23 as the notice of demand dated: 17th December2022 (Exhibit - 'Q') issued under section 156 ofthe Income-tax Act, 1961 by the RespondentNo. 2 and penalty notice dated 17th December2022 (Exhibit - 'R'& 'S') issued under section270 A and 271AAC(1) of the Income - tax Act,1961 by the Respondent No. 2; B)That this Hon'ble Court may be pleased to issuean appropriate Writ, Order or Direction underArticle 226 of the Constitution of India,ordering and directing Respondent No. 2 towithdraw the impugned assessment orderdated: 17 December 2022 (Exhibit 'P') passedunder section 143 (3) r.w.s. of the Income-taxAct, 1961 by the Respondent No. 2 as well asthe notice of demand dated: 17th December2022 (Exhibit - 'Q') issued under section 156 ofthe Income-tax Act, 1961 by the RespondentNo. 2 and penalty notices dated 17 December2022 (Exhibit 'R' & 'S') issued under section270 A and 271AAC(1) of the Income-tax Act,1961 by the Respondent No. 2; C)That this Hon'ble Court be pleased to issue aWrit, Order or Direction under Article 226 ofthe Constitution of India ordering and directingRespondents not to take any action infurtherance to the impugned assessment orderdated 17th December 2022 (Exhibit - 'P') aswell as the notice of demand dated: 17thDecember 2022 (Exhibit-'Q') issued undersection 156 of the Act and penalty notice dated17 December 2022 (Exhibit- 'R'&'S') issuedunder section 270 A of the Income - tax Act,1961 by the Respondent No. 2; D)That pending the hearing and final disposal ofthis petition the Respondents, their successorsin office, subordinates, servants and agents berestrained by an order and injunction of thisHon'ble Court from taking any steps pursuantto the impugned assessment order dated 17thDecember 2022 (Exhibit - 'P') as well as the *3* 906wp2172o23 notice of demand dated: 17th December 2022(ExhibitQ) and penalty notices dated 17December 2022 (Exhibit 'R' & 'S');.” 2.We have considered the submissions of the learned Advocates appearing for the respective sides and have gonethrough the petition paper book with their assistance. 3.For the Assessment Year 2021-22, the Petitioner has filed it's Income Tax Returns on 28.02.2022. The computedincome under Section 143(1) of the Income Tax Act, 1961, wasRs.3,83,86,700/-. The Department did not agree with thecomputation and, therefore, issued the show cause notice underSection 144-B r/w Section 143(2), on 02.12.2022. Section 143(2)and Section 144-B, read as under:- *3* 906wp2172o23 notice of demand dated: 17th December 2022(ExhibitQ) and penalty notices dated 17December 2022 (Exhibit 'R' & 'S');.” 2.We have considered the submissions of the learned Advocates appearing for the respective sides and have gonethrough the petition paper book with their assistance. 3.For the Assessment Year 2021-22, the Petitioner has filed it's Income Tax Returns on 28.02.2022. The computedincome under Section 143(1) of the Income Tax Act, 1961, wasRs.3,83,86,700/-. The Department did not agree with thecomputation and, therefore, issued the show cause notice underSection 144-B r/w Section 143(2), on 02.12.2022. Section 143(2)and Section 144-B, read as under:- “143(2) Where a return has been furnished under section139, or in response to a notice under sub-section(1) of section 142, the Assessing Officer or theprescribed income-tax authority, as the case maybe, if, considers it necessary or expedient to ensurethat the assessee has not understated the income orhas not computed excessive loss or has not under-paid the tax in any manner, shall serve on theassessee a notice requiring him, on a date to bespecified therein, either to attend the office of theAssessing Officer or to produce, or cause to beproduced before the Assessing Officer anyevidence on which the assessee may rely in supportof the return:139, or in response to a notice under sub-section(1) of section 142, the Assessing Officer or theprescribed income-tax authority, as the case maybe, if, considers it necessary or expedient to ensurethat the assessee has not understated the income orhas not computed excessive loss or has not under-paid the tax in any manner, shall serve on theassessee a notice requiring him, on a date to bespecified therein, either to attend the office of theAssessing Officer or to produce, or cause to beproduced before the Assessing Officer anyevidence on which the assessee may rely in supportof the return: Provided that no notice under this sub-section shall be served on the assessee after theexpiry of [three] months from the end of the *4* 906wp2172o23 financial year in which the return is furnished.” “144B. (1) Notwithstanding anything to the contrarycontained in any other provision of this Act, theassessment, reassessment or recomputation undersub- section (3) of section 143 or under section 144or under section 147, as the case may be, withrespect to the cases referred to in sub-section (2),shall be made in a faceless manner as per thefollowing procedure, namely:-contained in any other provision of this Act, theassessment, reassessment or recomputation undersub- section (3) of section 143 or under section 144or under section 147, as the case may be, withrespect to the cases referred to in sub-section (2),shall be made in a faceless manner as per thefollowing procedure, namely:- (i) the National Faceless Assessment Centre shallassign the case selected for the purposes of facelessassessment under this section to a specificassessment unit through an automated allocationsystem; assign the case selected for the purposes of facelessassessment under this section to a specificassessment unit through an automated allocationsystem; (ii) the National Faceless Assessment Centre shallintimate the assessee that assessment in his caseshall be completed in accordance with theprocedure laid down under this section;intimate the assessee that assessment in his caseshall be completed in accordance with theprocedure laid down under this section; (i) the National Faceless Assessment Centre shallassign the case selected for the purposes of facelessassessment under this section to a specificassessment unit through an automated allocationsystem; assign the case selected for the purposes of facelessassessment under this section to a specificassessment unit through an automated allocationsystem; (ii) the National Faceless Assessment Centre shallintimate the assessee that assessment in his caseshall be completed in accordance with theprocedure laid down under this section;intimate the assessee that assessment in his caseshall be completed in accordance with theprocedure laid down under this section; (iii)a notice shall be served on the assessee, throughthe National Faceless Assessment Centre, undersub-section (2) of section 143 or under sub-section(1) of section 142 and the assessee may file hisresponse to such notice within the date specifiedtherein, to the National Faceless AssessmentCentre which shall forward the same to theassessment unit:the National Faceless Assessment Centre, undersub-section (2) of section 143 or under sub-section(1) of section 142 and the assessee may file hisresponse to such notice within the date specifiedtherein, to the National Faceless AssessmentCentre which shall forward the same to theassessment unit: (iv) where a case is assigned to the assessment unit,under clause (i), it may make a request through theNational Faceless Assessment Centre for- under clause (i), it may make a request through theNational Faceless Assessment Centre for- (a) obtaining such further information, documentsor evidence from the assessee or any other person,as it may specify:or evidence from the assessee or any other person,as it may specify: (b) conducting of enquiry or verification byverification unit;verification unit; (c) seeking technical assistance in respect ofdetermination of arm's length price, valuation ofproperty, withdrawal of registration, approval,exemption or any other technical matter byreferring to the technical unit;determination of arm's length price, valuation ofproperty, withdrawal of registration, approval,exemption or any other technical matter byreferring to the technical unit; (v) where a request under sub-clause (a) of clause (iv)has been initiated by the assessment unit, thehas been initiated by the assessment unit, the *5* 906wp2172o23 National Faceless Assessment Centre shall serveappropriate notice or requisition on the assessee orany other person for obtaining the information,documents or evidence requisitioned by theassessment unit and the assessee or any otherperson, as the case may be, shall file his responseto such notice within the time specified therein orsuch time as may be extended on the basis of anapplication in this regard, to the National FacelessAssessment Centre which shall forward the replyto the assessment unit; (vi) where a request- (a) for conducting of enquiry or verification by theverification has been made by the assessment unitunder sub-clause (b) of clause fix the request shallbe assigned by the National Faceless AssessmentCentre to a verification unit through an automatedallocation system orverification has been made by the assessment unitunder sub-clause (b) of clause fix the request shallbe assigned by the National Faceless AssessmentCentre to a verification unit through an automatedallocation system or (b)for reference to the technical unit has beenmade by the assessment unit under sub-clause (c)of clause (iv), the request shall be assigned by theNational Faceless Assessment Centre to a technicalunit through an automated allocation system; vii) the National Faceless Assessment Centre shall sendthe report received from the verification unit or thetechnical unit, as the case may be based on therequest referred to in clause (vi) to the concernedassessment unit; (b)for reference to the technical unit has beenmade by the assessment unit under sub-clause (c)of clause (iv), the request shall be assigned by theNational Faceless Assessment Centre to a technicalunit through an automated allocation system; vii) the National Faceless Assessment Centre shall sendthe report received from the verification unit or thetechnical unit, as the case may be based on therequest referred to in clause (vi) to the concernedassessment unit; (viii)where the assessee fails to comply with the noticeserved under clause jor notice issued under sub-section (1) of section 142 or the terms of noticeissued under sub-section (2) of section 143, theNational Face less Assessment Centre shallintimate such failure to the assessment unit;served under clause jor notice issued under sub-section (1) of section 142 or the terms of noticeissued under sub-section (2) of section 143, theNational Face less Assessment Centre shallintimate such failure to the assessment unit;(ix) the assessment unit shall serve upon such assessee,as referred to in clause (vi), a notice, through theNational Faceless Assessment Centre, undersection 144, giving him an opportunity to show-cause on a date and time as specified in such noticeas to why the assessment in his case should not becompleted to the best of its judgment;as referred to in clause (vi), a notice, through theNational Faceless Assessment Centre, undersection 144, giving him an opportunity to show-cause on a date and time as specified in such noticeas to why the assessment in his case should not becompleted to the best of its judgment; (x) the assessee shall within the time specified in thenotice referred to in clause fix) or such time as maybe extended on the basis of an application in thisnotice referred to in clause fix) or such time as maybe extended on the basis of an application in this *6* 906wp2172o23 regard, file his response to the National FacelessAssessment Centre which shall forward the sameto the assessment unit; (xi) where the assessee fails to file response to thenotice served under clause fix) within the timespecified therein or within the extended time, ifany, the National Faceless Assessment Centre shallintimate such failure to the assessment unit;notice served under clause fix) within the timespecified therein or within the extended time, ifany, the National Faceless Assessment Centre shallintimate such failure to the assessment unit; (xii) the assessment unit shall, after taking into accountall the relevant material available on the record,prepare, in writing-all the relevant material available on the record,prepare, in writing- (a) an income or loss determination proposal,where no variation prejudicial to assessee isproposed and send a copy of such income or lossdetermination proposal to the National FacelessAssessment Centre; orwhere no variation prejudicial to assessee isproposed and send a copy of such income or lossdetermination proposal to the National FacelessAssessment Centre; or (b) in any other case, a show cause notice statingthe variations prejudicial to the interest of assesseeproposed to be made to the income of the assesseeand calling upon him to submit as to why theproposed variation should not be made and servesuch show cause notice, on the assessee, throughthe National Faceless Assessment Centre;the variations prejudicial to the interest of assesseeproposed to be made to the income of the assesseeand calling upon him to submit as to why theproposed variation should not be made and servesuch show cause notice, on the assessee, throughthe National Faceless Assessment Centre; (b) in any other case, a show cause notice statingthe variations prejudicial to the interest of assesseeproposed to be made to the income of the assesseeand calling upon him to submit as to why theproposed variation should not be made and servesuch show cause notice, on the assessee, throughthe National Faceless Assessment Centre;the variations prejudicial to the interest of assesseeproposed to be made to the income of the assesseeand calling upon him to submit as to why theproposed variation should not be made and servesuch show cause notice, on the assessee, throughthe National Faceless Assessment Centre; (xiii) the assessee shall file his reply to the show causenotice served under sub-clause (b) of clause (xii)on a date and time as specified therein or such timeas may be extended on the basis of an applicationmade in this regard, to the National FacelessAssessment Centre, which shall forward the replyto the assessment unit;notice served under sub-clause (b) of clause (xii)on a date and time as specified therein or such timeas may be extended on the basis of an applicationmade in this regard, to the National FacelessAssessment Centre, which shall forward the replyto the assessment unit; (xiv)where the assessee fails to file response to thenotice served under sub- clause (b) of clause (xii)within the time specified therein or within theextended time, if any, the National FacelessAssessment Centre shall intimate such failure tothe assessment unit;notice served under sub- clause (b) of clause (xii)within the time specified therein or within theextended time, if any, the National FacelessAssessment Centre shall intimate such failure tothe assessment unit; (xv) the assessment unit shall, after considering theresponse received under clause (xiii) or afterreceipt of intimation under clause (xiv), as the casemay be, and taking into account all relevantmaterial available on record, prepare an income orloss determination proposal and send the same tothe National Faceless Assessment Centre;response received under clause (xiii) or afterreceipt of intimation under clause (xiv), as the casemay be, and taking into account all relevantmaterial available on record, prepare an income orloss determination proposal and send the same tothe National Faceless Assessment Centre;(xvi) upon receipt of the income or loss determination *7* 906wp2172o23 proposal, as referred to in sub-clause (a) of clause(xii) or clause (xv), as the case may be, theNational Faceless Assessment Centre may, on thebasis of guidelines issued by the Board,- (a) convey to the assessment unit to preparedraft order in accordance with the income or lossdetermination proposal, which shall thereafterprepare a draft order; or (b) assign the income or loss determinationproposal to a review unit through an automatedallocation system, for conducting review of suchproposal; (xvii) the review unit shall conduct review of the incomeor loss determination proposal assigned to it by theNational Faceless Assessment Centre, under sub-clause (b)of clause (xvi), whereupon it shallprepare a review report and send the same to theNational Faceless Assessment Centre;or loss determination proposal assigned to it by theNational Faceless Assessment Centre, under sub-clause (b)of clause (xvi), whereupon it shallprepare a review report and send the same to theNational Faceless Assessment Centre; (xviii) the National Faceless Assessment Centre shall,upon receiving the review report under clause(xvii), forward the same to the assessment unitwhich had proposed the income or lossdetermination proposal;upon receiving the review report under clause(xvii), forward the same to the assessment unitwhich had proposed the income or lossdetermination proposal; (xviii) the National Faceless Assessment Centre shall,upon receiving the review report under clause(xvii), forward the same to the assessment unitwhich had proposed the income or lossdetermination proposal;upon receiving the review report under clause(xvii), forward the same to the assessment unitwhich had proposed the income or lossdetermination proposal; (xix) the assessment unit shall, after considering suchreview report, accept or reject some or all of themodifications proposed therein and after recordingreasons in case of rejection of such modifications,prepare a draft order; review report, accept or reject some or all of themodifications proposed therein and after recordingreasons in case of rejection of such modifications,prepare a draft order; (xx) the assessment unit shall send such draft orderprepared under sub-clause (a) of clause (xvi) orunder clause (xix) to the National FacelessAssessment Centre;prepared under sub-clause (a) of clause (xvi) orunder clause (xix) to the National FacelessAssessment Centre; (xxi) in case of an eligible assessee, where there is aproposal to make any variation which is prejudicialto the interest of such assessee, as mentioned insub-section (1) under section 144C, the NationalFaceless Assessment Centre shall serve the draftorder referred to in clause (xx) on the assessee;proposal to make any variation which is prejudicialto the interest of such assessee, as mentioned insub-section (1) under section 144C, the NationalFaceless Assessment Centre shall serve the draftorder referred to in clause (xx) on the assessee; (xxii) in any case other than that referred to in clause(xxi), the National Faceless Assessment Centreshall convey to the assessment unit to pass the finalassessment order in accordance with such draftorder, which shall thereafter pass the final(xxi), the National Faceless Assessment Centreshall convey to the assessment unit to pass the finalassessment order in accordance with such draftorder, which shall thereafter pass the final *8* 906wp2172o23 assessment order and initiate penalty proceedings,if any, and send it to the National FacelessAssessment Centre; (xxiii) upon receiving the final assessment order as perclause (xx), the National Faceless AssessmentCentre shall serve a copy of such order and noticefor initiating penalty proceedings, if any, on theassessee along with the demand notice, specifyingthe sum payable by or refund of any amount dueto, the assessee on the basis of suck assessment;clause (xx), the National Faceless AssessmentCentre shall serve a copy of such order and noticefor initiating penalty proceedings, if any, on theassessee along with the demand notice, specifyingthe sum payable by or refund of any amount dueto, the assessee on the basis of suck assessment; (xxiv) where a draft order is served on the assessee asreferred to in clause (xxi), such assessee shall,- (a) file his acceptance of the variations proposed insuch draft order to the National FacelessAssessment Centre; or b) file his objections, if any, to such variations,with- (I) the Dispute Resolution Panel, and (II) the National Faceless Assessment Centre,within the period specified in the sub-section (2) of section 144C; (xxv) the National Faceless Assessment Centre shall,- (a) upon receipt of acceptance from the eligibleassessee; orassessee; or (b) if no objections are received from the eligibleassessee, within the period specified in sub-section(2) of section 144C,assessee, within the period specified in sub-section(2) of section 144C, intimate the assessment unit to complete theassessment on the bus of the draft order;assessment on the bus of the draft order; (a) file his acceptance of the variations proposed insuch draft order to the National FacelessAssessment Centre; or b) file his objections, if any, to such variations,with- (I) the Dispute Resolution Panel, and (II) the National Faceless Assessment Centre,within the period specified in the sub-section (2) of section 144C; (xxv) the National Faceless Assessment Centre shall,- (a) upon receipt of acceptance from the eligibleassessee; orassessee; or (b) if no objections are received from the eligibleassessee, within the period specified in sub-section(2) of section 144C,assessee, within the period specified in sub-section(2) of section 144C, intimate the assessment unit to complete theassessment on the bus of the draft order;assessment on the bus of the draft order; (xxvi) the assessment unit shall, upon receipt ofintimation under clause (xxv), pass the assessmentorder, in accordance with the relevant d order,within the time allowed under sub-section (4) ofsection 144C and initiate penalty proceedings, ifany, and send the order to the National FacelessAssessment Centre; (xxvii) where the eligible assessee files objections with theDispute Resol utionPanel, under sub-clause (b) ofclause (xxiv), the National Faceless AssessmentCentre shall send such intimation along with acopy of objections filed to the assessment unit;Dispute Resol utionPanel, under sub-clause (b) ofclause (xxiv), the National Faceless AssessmentCentre shall send such intimation along with acopy of objections filed to the assessment unit; (xxviii) the National Faceless Assessment Centre shall, in acase referred in clause (xxvii), upon receipt of thecase referred in clause (xxvii), upon receipt of the *9* 906wp2172o23 directions issued by the Dispute Resolution Panelunder sub-section (5) of section 144C, forwarddirections to the assessment unit; (xxix) the assessment unit shall, in conformity with thedirections issued the Dispute Resolution Panelunder sub-section (5) of section 144C complete theassessment within the time allowed in sub-section(13) of section 144C and initiate penaltyproceedings, if any, and send a copy of theassessment order to the National FacelessAssessment Centre;directions issued the Dispute Resolution Panelunder sub-section (5) of section 144C complete theassessment within the time allowed in sub-section(13) of section 144C and initiate penaltyproceedings, if any, and send a copy of theassessment order to the National FacelessAssessment Centre; (xxx)the National Faceless Assessment Centre shall,upon receipt of the assessment order referred to inclause (xxvi) or clause (xxix), as the case may be,serve a copy of such order and notice for initiatingpenalty proceedings, if any, on the assessee, alongwith the demand notice, specifying the sumpayable by, or the amount of refund due to, theassessee on the basis of such assessment;upon receipt of the assessment order referred to inclause (xxvi) or clause (xxix), as the case may be,serve a copy of such order and notice for initiatingpenalty proceedings, if any, on the assessee, alongwith the demand notice, specifying the sumpayable by, or the amount of refund due to, theassessee on the basis of such assessment; (xxxi) the National Faceless Assessment Centre shall,after completion of assessment, transfer all theelectronic records of the case to the AssessingOfficer having jurisdiction over the said case forsuch action as may be required under theprovisions of this Act;after completion of assessment, transfer all theelectronic records of the case to the AssessingOfficer having jurisdiction over the said case forsuch action as may be required under theprovisions of this Act; (xxxi) the National Faceless Assessment Centre shall,after completion of assessment, transfer all theelectronic records of the case to the AssessingOfficer having jurisdiction over the said case forsuch action as may be required under theprovisions of this Act;after completion of assessment, transfer all theelectronic records of the case to the AssessingOfficer having jurisdiction over the said case forsuch action as may be required under theprovisions of this Act; (xxxii) if at any stage of the proceedings before it, theassessment unit having regard to the nature andcomplexity of the accounts, volume of theaccounts, doubts about the correctness of accounts,multiplicity of transactions in the accounts orspecialised nature of business activity of theassessee, and the interests of the revenue, is of theopinion that it is necessary to do so, it may, uponrecording its reasons in writing, refer the case tothe National Faceless Assessment Centre statingthat the provisions of sub-section (2A) of section142 may be invoked and such case shall be dealtwith in accordance with the provisions of sub-section (7).assessment unit having regard to the nature andcomplexity of the accounts, volume of theaccounts, doubts about the correctness of accounts,multiplicity of transactions in the accounts orspecialised nature of business activity of theassessee, and the interests of the revenue, is of theopinion that it is necessary to do so, it may, uponrecording its reasons in writing, refer the case tothe National Faceless Assessment Centre statingthat the provisions of sub-section (2A) of section142 may be invoked and such case shall be dealtwith in accordance with the provisions of sub-section (7). (2)The faceless assessment under sub-section (1) shallbe made in respect of such territorial area, orpersons or class of persons, or incomes or class ofincomes, or cases or class of cases, as may bebe made in respect of such territorial area, orpersons or class of persons, or incomes or class ofincomes, or cases or class of cases, as may be *10* 906wp2172o23 specified by the Board. (3) The Board may, for the purposes of facelessassessment, set up the following Centre and unitsand specify their functions and jurisdiction,namely:- (i) a National Faceless Assessment Centre tofacilitate the conduct of faceless assessmentproceedings in a centralised manner; (ii) such assessment units, as it may deemnecessary to conduct the faceless assessment, toperform the function of making assessment, whichincludes identification of points or issues materialfor the determination of any liability (includingrefund) under this Act, seeking information orclarification on points or issues so identified.analysis of the material furnished by the assesseeor any other person, and such other functions asmay be required for the purposes of makingfaceless assessment, and the term "assessment unit,wherever used in this section, shall refer to anAssessing Officer having powers so assigned bythe Board; (iii) such verification units, as it may deemnecessary to facilitate the conduct of facelessassessment, to perform the function of verification,which includes enquiry, cross verification,examination of books of account, examination ofwitnesses and recording of statements, and suchother functions as may be required for the purposesof verification and the term "verification unit,wherever used in this section, shall refer to anAssessing Officer having powers so assigned bythe Board: Provided that the function of verificationunit under this section may also be performed by averification unit located in any other facelesscentre set up under the provisions of this Act orunder any scheme notified under the provisions ofthis Act; and the request for verification may alsobe assigned through the National FacelessAssessment Centre to such verification unit; Provided that the function of verificationunit under this section may also be performed by averification unit located in any other facelesscentre set up under the provisions of this Act orunder any scheme notified under the provisions ofthis Act; and the request for verification may alsobe assigned through the National FacelessAssessment Centre to such verification unit; (iv) such technical units, as it may deem *11* 906wp2172o23 necessary to facilitate the conduct of facelessassessment, to perform the function of providingtechnical assistance which includes any assistanceor advice on legal, accounting, forensic,information technology, valuation, transfer pricingdata analytics, management or any other technicalmatter under this Actor an agreement entered intounder section 90 or 90A, which may be required ina particular case or a class of cases, under thissection and the term "technical unit", whereverused in this section, shall refer to an AssessingOfficer having powers so assigned by the Board;(v) such review units, as it may deem necessaryto facilitate the conduct of faceless assessment, toperform the function of review of the incomedetermination proposal assigned under sub-clause(b) of clause (xvi) of sub-section (1), whichincludes checking whether the relevant andmaterial evidence has been brought on record,relevant points of fact and law have been dulyincorporated, the issues requiring addition ordisallowance have been incorporated and suchother functions as may be required for the purposesof review and the term "review unit wherever usedin this section, shall refer to an Assessing Officerhaving powers so assigned by the Board. (4) The assessment unit, verification unit, technicalunit and the review unit shall have the followingauthorities, namely:-unit and the review unit shall have the followingauthorities, namely:- (i) Additional Commissioner or AdditionalDirector or Joint Commissioner or Joint Director,as the case may be; (ii) Deputy Commissioner or Deputy Director orAssistant Commissioner or Assistant Director, orIncome-tax Officer, as the case may be; (iii) such other income-tax authority, ministerialstaff, executive or consultant, as may be considerednecessary by the Board. 5) All communications, (i) among the assessment unit, review unit, *12* 906wp2172o23 verification unit or technical unit or with theassessee or any other person with respect to theinformation or documents or evidence or any otherdetails, as may be necessary for the purposes ofmaking a faceless assessment shall be through theNational Faceless Assessment Centre; (ii) between the National Faceless AssessmentCentre and the assessee, or his authorisedrepresentative, or any other person shall beexchanged exclusively by electronic mode; and(iii) between the National Faceless AssessmentCentre and various units shall be exchangedexclusively by electronic mode: Provided that the provisions of this sub-section shall not apply to the enquiry orverification conducted by the verification unit inthe circumstances as may be specified by theBoard in this behalf. (6)For the purposes of faceless assessment- (i) an electronic record shall be authenticatedby – (a) the National Faceless Assessment Centre byway of an electronic communication; (b) the assessment unit or verification unit ortechnical unit or review unit, as the case may be,by affixing digital signature; (c) assessee or any other person, by affixing hisdigital signature of under electronic verificationcode, or by logging into his registered account inthe designated portal; (ii) every notice or order or any other electroniccommunication shall be delivered to the addressee,being the assessee, by way of- (a) placing an authenticated copy thereof in theregistered account of the assessee; or (b) sending an authenticated copy thereof to theregistered email address of the assessee or hisauthorised representative; or (i) an electronic record shall be authenticatedby – (a) the National Faceless Assessment Centre byway of an electronic communication; (b) the assessment unit or verification unit ortechnical unit or review unit, as the case may be,by affixing digital signature; (c) assessee or any other person, by affixing hisdigital signature of under electronic verificationcode, or by logging into his registered account inthe designated portal; (ii) every notice or order or any other electroniccommunication shall be delivered to the addressee,being the assessee, by way of- (a) placing an authenticated copy thereof in theregistered account of the assessee; or (b) sending an authenticated copy thereof to theregistered email address of the assessee or hisauthorised representative; or (c) uploading an authenticated copy on the MobileApp of the assessee, and followed by a real time alert; 906wp2172o23 (iii) every notice or order or any other electroniccommunication shall be delivered to the addressee,being any other person, by sending anauthenticated copy thereof to the registered emailaddress of such person, followed by a real timealert; (iv) the assessee shall file his response to anynotice or order or any other electroniccommunication, through his registered account,and once an acknowledgment is sent by theNational Faceless Assessment Centre containingthe hash result generated upon successfulsubmission of response, the response shall bedeemed to be authenticated; (v) the time and place of dispatch and receipt ofelectronic record shall be determined in accordancewith the provisions of section 13 of theInformation Technology Act, 2000 (21 of 2000):(vi) a person shall not be required to appear eitherpersonally or through authorised representative inconnection with any proceedings before any unitset up under this section; (vii) in a case where a variation is proposed in theincome or loss determination proposal or the draftorder, and an opportunity is provided to theassessee by serving a notice calling upon him toshow cause as to why the assessment should not becompleted as per such income or lossdetermination proposal, the assessee or hisauthorised representative, as the case may be, mayrequest for personal hearing so as to make his oralsubmissions or present his case before the income-tax authority of the relevant unit; (viii) where the request for personal hearing hasbeen received, the income- tax authority ofrelevant unit shall allow such hearing, throughNational Faceless Assessment Centre, which shallbe conducted exclusively through videoconferencing or video telephony, including use ofany telecommunication application software whichsupports video conferencing or video telephony, tothe extent technologically feasible, in accordancewith the procedure laid down by the Board; *14* 906wp2172o23 (ix) subject to the proviso to sub-section (5), anyexamination or recording of the statement of theassessee or any other person (other than thestatement recorded in the course of survey undersection 133A) shall be conducted by an income-taxauthority in the relevant unit, exclusively throughvideo conferencing or video telephony, includinguse of any telecommunication application softwarewhich supports video conferencing or videotelephony, to the extent technologically feasible. inaccordance with the procedure laid down by the Board; (x) the Board shall establish suitable facilities forvideo conferencing or video telephony includingtelecommunication application software whichsupports video conferencing or video telephony atsuch locations as may be necessary, so as to ensurethat the assessee, or his authorised representative,or any other person is not denied the benefit offaceless assessment merely on the considerationthat such assessee or his authorised representative,or any other person does not have access to videoconferencing or video telephony at his end; Board; (x) the Board shall establish suitable facilities forvideo conferencing or video telephony includingtelecommunication application software whichsupports video conferencing or video telephony atsuch locations as may be necessary, so as to ensurethat the assessee, or his authorised representative,or any other person is not denied the benefit offaceless assessment merely on the considerationthat such assessee or his authorised representative,or any other person does not have access to videoconferencing or video telephony at his end; (xi) the Principal Chief Commissioner or thePrincipal Director General, as the case may be, in-charge of the National Faceless Assessment Centreshall, with the prior approval of the Board, laydown the standards, procedures and processes foreffective functioning of the National FacelessAssessment Centre and the units set up, in anautomated and mechanised environment. (7)(a) The Principal Chief Commissioner or the PrincipalDirector General, as the case may be, in-charge ofthe National Faceless Assessment Centre shall, inaccordance with the procedure laid down by theBoard in this regard, if he considers appropriatethat the provisions of sub-section (2A) of section142 may be invoked in the case,Director General, as the case may be, in-charge ofthe National Faceless Assessment Centre shall, inaccordance with the procedure laid down by theBoard in this regard, if he considers appropriatethat the provisions of sub-section (2A) of section142 may be invoked in the case, (i) forward the reference received from anassessment unit under clause (xxxii) of sub-section(1) to the Principal Chief Commissioner or ChiefCommissioner or Principal Commissioner orCommissioner having jurisdiction over such case, *15* 906wp2172o23 and inform the assessment unit accordingly; (ii) transfer the case to the Assessing Officerhaving jurisdiction over such case in accordancewith sub-section (8); having jurisdiction over such case in accordancewith sub-section (8); (b) where a reference has been received by thePrincipal Chief Commissioner or ChiefCommissioner or Principal Commissioner orCommissioner under sub-clause (i) of clause (a),he shall direct the Assessing Officer, havingjurisdiction over the case, to invoke the provisionsof sub-section (2A) of section 142;Principal Chief Commissioner or ChiefCommissioner or Principal Commissioner orCommissioner under sub-clause (i) of clause (a),he shall direct the Assessing Officer, havingjurisdiction over the case, to invoke the provisionsof sub-section (2A) of section 142; (c)where a reference has not been forwarded to thePrincipalChiefCommissionerChiefCommissioner or Principal Commissioner orCommissioner, having jurisdiction over the case, ina case referred to in sub-clause 6) of clause (a), theassessment unit shall proceed to complete theassessment in accordance with the procedure laiddown in this section.PrincipalChiefCommissionerChiefCommissioner or Principal Commissioner orCommissioner, having jurisdiction over the case, ina case referred to in sub-clause 6) of clause (a), theassessment unit shall proceed to complete theassessment in accordance with the procedure laiddown in this section. (8)Notwithstanding anything contained in sub-section(1) or sub-section (2), the Principal ChiefCommissioner or the Principal Director General, asthe case may be in-charge of National FacelessAssessment Centre may, at any stage of theassessment, if considered necessary, transfer thecase to the Assessing Officer having jurisdictionover such case, with the prior approval of theBoard. (1) or sub-section (2), the Principal ChiefCommissioner or the Principal Director General, asthe case may be in-charge of National FacelessAssessment Centre may, at any stage of theassessment, if considered necessary, transfer thecase to the Assessing Officer having jurisdictionover such case, with the prior approval of theBoard. (8)Notwithstanding anything contained in sub-section(1) or sub-section (2), the Principal ChiefCommissioner or the Principal Director General, asthe case may be in-charge of National FacelessAssessment Centre may, at any stage of theassessment, if considered necessary, transfer thecase to the Assessing Officer having jurisdictionover such case, with the prior approval of theBoard. (1) or sub-section (2), the Principal ChiefCommissioner or the Principal Director General, asthe case may be in-charge of National FacelessAssessment Centre may, at any stage of theassessment, if considered necessary, transfer thecase to the Assessing Officer having jurisdictionover such case, with the prior approval of theBoard. (9)[Omitted by the Finance Act, 2022, w.r.e.f. 1-4-2021.]2021.] (10)[Omitted by the Finance Act, 2022, wef. 1-4-2022.]2022.] Explanation. In this section, unless the context otherwiserequires-requires- (a) "addressee" shall have the same meaning asassigned to it in clause (b) of sub-section (1) ofsection 2% of the Information Technology Act,2000 (21 of 2000); assigned to it in clause (b) of sub-section (1) ofsection 2% of the Information Technology Act,2000 (21 of 2000); *16* 906wp2172o23 (b) "authorised representative' shall have the samemeaning as assigned to it in sub-section (2) ofsection 288; (c) "automated allocation system" means analgorithm for randomised allocation of cases, byusing suitable technological tools, includingartificial intelligence and machine learning, with aview to optimise the use of resources; (d) "automated examination tool" means analgorithm for standardised examination of draftorders, by using suitable technological tools.including artificial intelligence and machinelearning, with a view to reduce the scope ofdiscretion; (e) “computer resource” shall have the samemeaning as assigned to it in clause (4) of sub-section (1) of section 2 of the InformationTechnology Act, 2000 (21 of 2000); (f)“computer system” shall have the samemeaning as assigned to it in clause of sub-section(1) of section 2 of the Information Technology Act,2000 (21 of 2000); (g) “computer resource of assessee" shall includeassessee's registered account in designated portalof the Income-tax Department, the Mobile Applinked to the registered mobile number of theassessee, or the registered email address of theassessee with his email service provider; (h) "digital signature shall have the same meaningas assigned to it in clause (p) of sub-section (1) ofsection 2" of the Information Technology Act,2000 (21 of 2000); (i) "designated portal" means the web portaldesignated as such by the Principal ChiefCommissioner or the Principal Director General, incharge of the National Faceless AssessmentCentre; (j)"Dispute Resolution Panel" shall have thesame meaning as assigned to it in clause (a) of sub-section (15) of section 144C; (k) "faceless assessment" means the assessmentproceedings conducted electronically in 'e-Proceeding' facility through assessee's registeredaccount in designated portal; *17* 906wp2172o23 (l)"electronic record" shall have the samemeaning as assigned to it in clause (1) of sub-section (1) of sectio