75th Founding Day Lecture Meeting on “India@2030” Know More

November 2021

Assessment – Faceless assessment – Variation in income to assessee’s prejudice – Personal hearing not given before passing assessment order and consequential notices though requested – Assessment order and subsequent notices of demand and penalty set aside

By K. B. Bhujle
Advocate
Reading Time 1 mins
10 Satia Industries Limited vs. NFAC [2021] 437 ITR 126 (Del) Date of order: 31st May, 2021 Ss. 144B(7)(vii), 156 and 270A of ITA, 1961

Assessment – Faceless assessment – Variation in income to assessee’s prejudice – Personal hearing not given before passing assessment order and consequential notices though requested – Assessment order and subsequent notices of demand and penalty set aside

The assessee filed a writ petition challenging the assessment order and the consequential notice, issued u/s 156, towards tax demand and u/s 270A for initiation of penalty proceedings on the ground that no personal hearing was granted despite a request being made.

The High Court set aside the assessment order and the consequential notices issued u/s 156 towards tax demand and u/s 270A for initiation of penalty proceedings and gave liberty to the Department to proceed from the stage of issuing a notice-cum-draft assessment order with directions to afford an opportunity of hearing to the assessee.

Download PDF

You May Also Like

Assessment – Faceless assessment – Writ – Request by assessee for personal hearing – Orders passed and consequential notices of demand and penalty without affording personal hearing – No information on whether steps enumerated in provision taken – Proceedings under assessment order and subsequent notices stayed while notice on writ petition issued

Charitable purpose – Exemption u/s 11 – Conditional exemption where trust is carrying on business – Meaning of ‘business’ – Trust running residential college – Maintenance of hostel in accordance with statutory requirement – Maintenance of hostel did not amount to business – Trust entitled to exemption