Section 144B(7) mandates personal hearing if requested by the assessee, and failure to provide it invalidates the assessment order.

JUDGMENT

Manmohan, J.: (Oral)--The petition has been heard by way of video conferencing.

2. Present writ petition has been filed challenging the assessment order dated 29th April, 2021 passed under Section 144(3) read with Section 144B of the Income Tax Act (hereinafter referred to as the 'Act') for AY 2018-19.

3. Learned counsel for the petitioner states that respondent issued the Show Cause Notice dated 07th April, 2021 giving the petitioner a very short time to submit its reply i.e. by 09th April, 2021 at 23:59 hours. She states that the petitioner filed a request for adjournment dated 09th April, 2021 requesting time till 13th April, 2021 for filing the reply. She points out that on 13th April, 2021 the petitioner filed a detailed response and requested for personal hearing through video conferencing. She submits that without providing any personal hearing as categorically requested by the petitioner in its reply dated 13th April, 2021, the respondent passed the impugned assessment order dated 29th April, 2021.

4. Per contra, Mr. Kunal Sharma, learned counsel for respondent states that the petitioner who had been given time to file reply-affidavit by 09th April, 2021, did not seek personal hearing on or before the said date.

5. In rejoinder, learned counsel for the petitioner has drawn this Court's attention to the screen shot of the e-filing portal where the petitioner uploaded its adjournment request with the respondent. She points out that e- filing portal clearly gave time till 15th April, 2021 to the petitioner to file its response to the show cause notice.

6. Having heard the learned counsel for the parties, this Court is of the view that as the e-filing portal gave time to the petitioner to file reply- affidavit till 15th April, 2021 and the petitioner in its reply-affidavit dated 13th April, 2021 had requested for a personal hearing, it was incumbent upon the respondent to have granted personal hearing through video conferencing.

7. This Court is further of the opinion that Section 144B(7) of the Act mandatorily provides for an opportunity of personal hearing, if requested, by the assessee. The relevant portions of Section 144B (7) and (9) are reproduced hereinbelow:

"144B. Faceless assessment -

(1) xxxx xxxx xxxx

(7) For the purposes of faceless assessment--

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(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, procedur