The central legal point established in the judgment is the requirement to provide an opportunity of personal hearing to the assessee as per the provisions of Section 144B (7) and the mandatory procedure prescribed in the Faceless Assessment Scheme.

JUDGMENT

Manmohan, J. - The petition has been heard by way of video conferencing.

2. Present writ petition has been filed challenging the Impugned Assessment Order dated 31st May 2021 passed by the Respondents in light of Section 144B (7) and Section 144B (9) of the Income Tax Act, 1961 [the Act] and all proceedings initiated pursuant thereto.

3. Learned counsel for the Petitioner states that the Show Cause Notice with draft Assessment Order was issued on 19 th March 2021 by NFAC giving time to file reply till 23:59 hours of 25th March 2021. He points out that the Petitioner responded to above Show Cause Notice within the short time pleading that the matter requires explanation due to complexity of facts and requested for video conference (VC) hearing. He also states that subsequently, separate requests were made by the Petitioner assessee seeking opportunity of personal hearing however, the Respondents without paying heed to the Petitioner's requests, issued more notices.

4. He emphasises that the impugned order dated 31st May 2021 was passed without providing personal hearing as was requested in replies dated 25th March 2021 and 13th April 2021 which is a serious violation of the principles of natural justice.

5. Issue notice. Ms. Vibhooti Malhotra, learned senior standing counsel accepts notice on behalf of respondents. She submits that the expression used in clause (vii) of sub-Section (7) of Section 144B of the Act is 'may' and not 'shall' and, therefore, there is no vested right in the petitioner to claim a personal hearing.

6. Having heard learned counsel for the parties, this Court is of the view that Section 144B (7) provides for an opportunity of personal hearing, if requested, by the assessee. The relevant portions of Section 144B (7) and Section 144B (9) are reproduced hereinbelow: -

"144B. Faceless assessment

(1) xxxx xxxx xxxx xxxx

(7) For the purposes of faceless assessment-

xxxx xxxx xxxx xxxx

(vii) in a case where a variation is proposed in the draft assessment order or final draft assessment order or revised draft assessment order, and an opportunity is provided to the assessee by serving a notice calling upon him to show-cause as to why the assessment should not be completed as per the such draft or final draft or revised draft assessment order, the assessee or his authorised representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income-tax authority in any unit;

(viii) the Chief Commissioner or the Director General, in charge of the Regional Faceless Assessment Centre, under which the concerned unit is set up, may approve the request for personal hearing referred to in clause (vii) if he is of the opinion that the request is covered by the circumstances referred to in sub-clause

(h) of clause (xii);

xxxx xxxx xxxx xxxx

(xii) the Principal Chief Commissioner or the Principal Director General, in charge of the National Faceless Assessment Centre shall, with the prior approval of the Board, lay down the standards, procedures and processes for effective functioning of the National Faceless Assessment Centre, Regional Faceless Assessment Centres and the unit set up, in an automated and mechanised environment, including format, mode, procedure and processes in respect of the following, namely: -

xxxx xxxx xxxx xxxx

(h) circumstances in which personal hearing referred to clause

(viii) shall be approved;...

xxxx xxxx xxxx xxxx

(9) Notwithstanding anything contained in any other provision of this Act, assessment made under sub-section (3) of section 143 or under section 144 in the cases referred to in subsection (2) [other than the cases transferred under sub-section

(8)], on or after the 1st day of April, 2021, shall be non est if such assessment is not made in accordance with the procedure laid down under this section."

7. The learned predecessor Division Bench in Sanjay Aggarwal Vs. National Faceless Assessment Centre, Delhi, W.P.(C) 5741/2021, dated 02n