The Calcutta High Court held that completing Faceless Assessment before time is not sustainable and it is in violation of principles of natural justice.
The assessee has challenged the faceless assessment proceedings on the ground of violation of principles of natural justice.
On September 11, 2021 the appellant writ petitioner received a notice dated 06.09.2021 from the respondent. In the said notice dated 06.09.2021, the respondent appears to have stated that National Faceless Assessment Centre (NFAC) has not received any response in the case of Mr. Pradip Kumar Saha, the appellant herein in respect of certain notices sent. The appellant was not granted the opportunity of filing a reply to the draft assessment order and seven days time was granted.
The appellant came to know of the notice for the first time on 11.09.2021 at 14.19 hours and received the same by speed post but the appellant’s accountant entered the online portal to submit reply to the show cause notice dated 23.08.2021 and other notices which were enclosed and by that time the appellant found that the second respondent had passed the assessment order dated 08.09.2021 and raised demand by imposing penalty. The facts appeared to be not in dispute that the Department may contend that earlier notices were issued. The fact remains that having granted a final opportunity of fixing a time limit, the time limit should commence to run from the date of the receipt of the notice and if that be so, the date should be computed from 11.09.2021 and it will expire on 17.09.2021. Therefore, completing the assessment well before the said time is not sustainable and it is in violation of principles of natural justice.
The division bench of Justice T. S. Sivagnanam and Justice Hiranmay Bhattacharyya held that the assessment order dated 08.09.2021 and the notice of the demand dated 08.09.2021 as well as the penalty notice dated 08.09.2021 are quashed and the matter is remanded to the respondents for granting fresh opportunity to the appellant for filing reply/objection to the draft assessment notice and, thereafter, to take a decision on the merit.
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