Wp(C)/779/2023 Of Jitendra Mohanty v. Income Tax Officer, National Faceless Assessment Centre, Delhi

Order No. 01. IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No. 779 of 2023 …. Petitioner Jitendra Mohanty Mr. R.P. Kar, Advocate -versus- Income Tax Officer, National Faceless ….Opposite PartiesAssessment Center, Delhi and Others Mr. T.K. Satapathy, Senior Standing Counsel CORAM: THE CHIEF JUSTICE JUSTICE M.S. RAMAN ORDER 19.01.2023 1. Notice. Mr. T.K. Satpathy, learned Senior Standing Counsel accepts notice on behalf of the Opposite Party Nos.1 to 3 at the stage of admission. 2. The challenge in the present petition is to both the notice dated 29[th] March, 2022 under Section 148 of the Income Tax Act, 1961 (Act) and the consequential assessment order dated 31[st] March, 2022 and penalty order (Annexures-2 and 2/A) and Annexure-4. 3. A bare perusal of the impugned notice dated 29[th] March, 2022 reveals that the Petitioner was asked to respond the said notice within one day i.e. by 30[th] March, 2022 and the impugned assessment order was passed the very next date i.e. 31[st] March, 2022. Apart from the time being unreasonably short, this is even contrary to the circular dated 19[th] November, 2020 issued by the CBDT wherein particular in para (T), it has been emphasized as under: “T. Issue of Show Cause Notice 1. The AU has to issue show cause notice wherever modification is proposed in return income or sum payable. The show cause notice, except in the case of order under section 144 of the Act shall accompany draft assessment order. As a corollary, the draft assessment order is required to be speaking, fair and judicious. 2. The AU is advised to issue show cause notice along with draft order as soon as SCN flag is raised in RMS and generally not be later than 5 days. 3. The AU should ensure that reasonable time is given in the show cause notice to the assessee so as to comply with the principles of natural justice.” 4. For the aforementioned reasons, the impugned show cause notice dated 29[th] March, 2022 and the consequential assessment order dated 31[st] March, 2022 and the penalty order and the demand issued as a result thereof are hereby quashed. 5. It is clarified that this will not prevent the Department from proceeding hereafter afresh in accordance with law. 6. The writ petition is disposed of in the above terms. An urgent certified copy of this order be issued as per rules. (Dr. S. Muralidhar) Chief Justice (M.S.Raman) Judge S.K. Jena/Secy.