The statutory remedy of filing an Appeal under Section 246-A of the Income Tax Act to the National Faceless Appellate Authority should be availed by the petitioner.

ORDER :

C. Praveen Kumar, J.

Heard Sri S. Dwarakanath, learned Senior Counsel, appearing on behalf of the petitioner, and Smt. M. Kiranmayee, learned Standing Counsel for Income Tax, appearing for the respondents, and with their consent the Writ Petition is disposed of at the admission stage.

2. Assailing the assessment order, dated 30.03.2022, made for the assessment year 2016-17, passed under Section 147 R/w. Sections 144 and 144-B of the Income Tax Act, 1961 (for short, ‘the Income Tax Act’) by the 1st respondent, the present Writ Petition is filed raising various grounds, more particularly that the order impugned came to be passed in violation of the principles of natural justice.

3. The facts in issue are as under:

The petitioner herein was involved in the Film Distribution business in the name of Sree Durga Theja Aswini Films in West Godavari District since 2014. The major components of his business relates to sales/receipts generated from the theatre collection and the sale of movie tickets. The petitioner also claims to have acted as Manager of his friend by name A. Mahalakshmi Rao, who was running a Bar and Restaurant. It is said that as he is not familiar with the Income Tax, did not approach any Tax Consultant or any Auditor to file income tax returns for the assessment year 2016-17, though he has a Permanent Account Number (PAN) on the rolls of the 2nd respondent. While so, the 2nd respondent issued a notice under Section 148 of the Income Tax Act on 26.03.2021 alleging that the income pertaining to tax for the year 2016-17, escaped assessment. The petitioner was called upon to file income tax returns in a prescribed form for the said assessment year. It is said that a notice was also sent through e-mail but he did not file any income tax returns pursuant to the said notice. In other words, it is his case that he is not in the habit of keeping a track of the e-mails. On 30.06.2021, another notice came to be issued under Section 142(1) of the Income Tax Act calling upon the petitioner to furnish documents and accounts as specified in notice on the ‘e-filing’ website of the Income Tax Department. In spite of giving an opportunity of filing documents and also the returns, in response to the notice under Section 148 of the Income Tax Act, within 30 days of the receipt of the notice, which came to be received on 31.03.2021, the petitioner did not file his returns. As there was no response to the notices issued earlier, another notice, dated 26.11.2021, came to be issued by the 1st respondent, who took over the assessment from the 2nd respondent, asking the petitioner to furnish documents by 03.12.2021. Even this notice was not in the knowledge of the petitioner as it was communicated by e-mail. Thereafter, on 29.12.2021, another notice under Section 142(1) of the Income Tax Act was issued by the 1st respondent giving time till 07.01.2022 to submit series of documents as mentioned in the Annexure. The petitioner did not respond to the notice for the reason that he was hospitalized between 08.12.2021 and 13.12.2021 and that he underwent surgery. On 09.01.2022, a notice under Section 144 of the Income Tax Act was issued to the petitioner proposing to do best judgment assessment for the assessment year 2016-17 giving time till 17.01.2022 to file his response. This notice was issued as the petitioner failed to file his response to the earlier notices. A similar notice was also issued on 09.02.2022 giving time to reply till 17.02.2022, which was issued to treat the cash deposits of Rs.1,47,52,000/- in the bank account as undisclosed income and to levy tax by way of best judgment assessment. The petitioner was served with show-cause notice, dated 15.03.2022, for proposed addition of Rs.1,11,62,000/- being the cash deposits in the savings bank account. On the same day i.e., on 15.03.2022, draft assessment order, under Section 147 R/w. Sections 144 and 144-B of the Income Tax Act was served proposing addition of Rs.1,47,52,000/- bein