The above judgement has been passed by Delhi High Court in the case of BL GUPTA CONSTRUCTION PRIVATE LIMITED versus NATIONAL E-ASSESSMENT CENTRE & ORS. order Dated 29.04.2021. [W.P.(C) 5060/2021]
Facts of the case:
Assessee was issued a show cause notice dated 18.03.2021 (“SCN”) which was served on the petitioner, called upon the petitioner to respond to the draft assessment order.
The time, for this purpose, was given up until 23:59 hours on 26.03.2021.
On contrary to the end date given in the SCN, the impugned assessment order was passed on 25.03.2021, i.e., before the expiry of the time granted via the SCN.
Also on that very date, i.e., 25.03.2021, a notice of demand under Section 156 of the Income Tax Act, 1961 (in short „the Act‟) was also issued qua the petitioner.
Also, notice for imposition of penalty was also issued to the petitioner on 25.03.2021, curiously calling upon the petitioner to furnish a reply by 24.03.2021.
Petitioner pleaded that there has been a breach of principle of natural justice.
Judgement:
Although, a reply qua SCN was prepared by the petitioner it could not be filed as the assessment order was passed before the end date, i.e., 25.03.2021.
There will be a stay on the notice of demand dated 25.03.2021, issued under Section 271AAC(1) of the Act, till further orders of the Court.
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There are various such writ petitions which have been filed in Delhi high court and other High courts as well against the procedure being followed by National e-assessment center in faceless assessment proceedings where principle of natural justice is not being followed and stay has been granted in many of such cases by High court’s.
