Failure to grant a personal hearing in tax assessments, as required under Section 144B of the Income Tax Act, renders such assessments non-est in law.

JUDGMENT

[Court hearing convened via video-conferencing on account of COVID-19]

Rajiv Shakdher, J. (Oral)

CM APPL. 17993/2021

1. Allowed, subject to just exceptions.

CM APPL. 17994/2021

2. The prayer made in the captioned application is to grant exemption from filing attested affidavits along with the present petition. The captioned application is disposed of with a direction to the petitioner to place on record the duly attested affidavits, within three days from the resumption of the normal and usual work pattern by this Court.

W.P.(C) 5741/2021 and CM APPL. 17992/2021 [Application filed on behalf of the petitioner seeking stay on the operation of the impugned assessment order dated 28.04.2021 and consequential proceedings]

Preface: -

3. Via this writ petition, a challenge is laid to the assessment order dated 28.04.2021, and consequential proceedings. The said order concerns the assessment year ('AY') 2018-2019.

3.1. The substantive prayers made in the writ petition are as follows:

"A. issue a writ in the nature of Certiorari or an order, quashing the impugned assessment order dated 28.04.2021 (Annexure-P-8) passed by the respondent;

B. issue a writ in the nature of mandamus or an order prohibiting the operation of the assessment order passed by the respondent ;

C. issue a writ in the nature of mandamus or an order prohibiting for the collection of disputed demand raised by the respondent.

D. that pending the hearing and final disposal of the present petition, this Court may be pleased to stay the operation of the impugned assessment order dated 28.04.2021 and subsequent proceeding which has been undertaken in consequence of said impugned assessment order dated 28.04.2021 and grant an injunction restraining the Respondents, their subordinates, servants, agents, successors-in-office from taking any steps in furtherance or in implementation of said impugned assessment order dated 28.04.2021 and subsequent proceeding which has been undertaken in consequence of the said impugned assessment order dated 28.04.2021."

4. Mr. Kapil Goel, who appears on behalf of the petitioner, says that the principal grievance of the petitioner is that, although, a personal hearing was sought, on account of the fact that the matter was complex and required proffering explanation, the respondent/revenue chose not to accord the same. 4.1 It is Mr. Goel's contention that the respondent/revenue has, thus, committed an infraction of the statutory scheme encapsulated in Section 144B of the INCOME TAX ACT , 1961 (in short `the Act').

5. Issue notice.

5.1. Mr. Shlok Chandra accepts service on behalf of the respondent/revenue.

6. Mr. Chandra says that he would argue the matter based on the record presently available with the Court, and therefore, he does not wish to file a counter-affidavit.

7. Thus, with the consent of the counsel for the parties, the writ petition is taken up for hearing and final disposal.

Background facts:

8. Broadly the facts adverted to in the writ petition are as follows:

8.1. The petitioner claims that, in respect of the AY in issue, i.e., 2018-2019, the return was filed on 27.10.2018. It is averred that, via this return, the petitioner declared its income as Rs.33,43,690/-. According to the petitioner, the return was processed under Section 143 (1) of the Act.

8.2. It is further averred by the petitioner that, on 22.09.2019, a notice was issued, under Section 143 (2) of the Act read with Rule 12E of the INCOME TAX RULES , 1962, whereby, the petitioner's return was picked u