The Delhi High Court while staying the assessment order against SAS Fininvest ruled that the assessee to be given a fair opportunity to explain his position on proposed additions/disallowances.
Mr. Kapil Goel, who appears on behalf of the petitioner-assessee, M/s SAS Fininvest Delhi said that the assessment in the instant case has been carried out under the Faceless Assessment Scheme, 2019 read with Faceless Assessment (1st Amendment) Scheme, 2021, which willy-nilly required the revenue to issue a show-cause notice (accompanied by the relevant material) before proceeding to pass the impugned assessment order.
However, no show-cause notice was issued to the petitioner-assessee, Mr. Goel relies upon the screenshot of the petitioner- assessee’s assessment proceedings on the e-portal.
The division bench of Justices Rajiv Shakdher and Talwant Singh relied on the Central Board of Direct Taxes instruction no. 20/2015, dated December 29, 2015 wherein it was stated that in all cases under scrutiny, where the Assessing Officer proposes to make additions or disallowances, the assessee would be given a fair opportunity to explain his position on the proposed additions/disallowances in accordance with the principle of natural justice. In this regard, the Assessing Officer shall issue an appropriate show-cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/reasons forming the basis of the same. Before passing the final order against the proposed additions/disallowances, due consideration shall be given to the submissions made by the assessee in response to the show-cause notice.
The Court listed the matter on August 10, 2021 and said in the meanwhile, there shall be a stay on the operation of the impugned assessment order.
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