JUDGMENT :

SONIA GOKANI, J.

1. The petitioner is a limited company which had filed the original return of income for the assessment year 2018-19 on 30.11.2018 declaring the total income at Rs. 59,03,19,030/-. The assessee filed the revised return of income declaring the total income of Rs. 57,46,07,670/-. It is a company engaged in the business of manufacturing and sale of pharmaceutical products.

2. The case of the petitioner was selected for the scrutiny under CASS and notice under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued to the petitioner on 22.09.2019 and thereafter, notice under Section 142(1) of the Act dated 20.09.2021 was issued.

2.1. The petitioner submitted its response on 04.10.2019 and 24.09.2021. The part information were by the petitioner tendered on 24.09.2021 and sought a short adjournment to furnish the remaining details as it was allowed only four days to submit such a response.

2.2. Since one of the reasons for selection of the case under scrutiny was international transactions – T.P. Risk Parameters as per para 3.2 of the Instruction No. 3/2016, the case was referred under Section 92CA(1) to the Transfer Pricing Officer for determination of Arm’s Length Price on 08.02.2021. The Transfer Pricing Officer had made adjustment of Rs. 2,49,36,861/- to the international transaction.

2.3. It is a grievance on the part of the petitioner that it received the draft assessment order under Section 143(3) read with Section 144C of the Act dated 29.09.2021 surprisingly and shockingly assessing the income of the petitioner under Section 144C(1) of the Act at Rs. 154,82,25,131/- without issuing the show cause notice and without providing the opportunity of being heard. It was also being directed that within 30 days of the receipt of draft order, it may file acceptance of the variation to the assessing officer or file objection, if any, with the Dispute Resolution Panel and the Assessing Officer.

2.4. On the ground that this draft order under Section 143(3) read with Section 144C is in violation of principles of natural justice as well as its statutory provisions under Section 144B, the same deserves to be quashed. On a ground that the respondent has completely failed to follow the procedure prescribed under Section 144B of the Act and this since amounts to breach of principles of natural justice, it has approached this Court relying on various decisions on this issue of invocation of powers under Article 226 of the Constitution of India despite the alternative remedy being available, with the following prayers:-

“(a) quash and set aside the impugned order at Annexure- 'A' to this Petition;

(b) pending the admission, hearing and final disposal of this petition, to stay implementation and operation of the order at Annexure- 'A' to this petition;

(c) any other and further relief deemed just and proper be granted in the interest of justice;

(d) to provide for the cost of this petition.”

3. This Court on 15.11.2021 issued notice to the respondents by passing following order:-

“According to the petitioner for the Assessment Year 2018 and 2019 without following the provisions of law the order has been passed by the respondent under Section 143(3) read with Section 144 C of the Income Tax Act assessing the income of the petitioner at Rs 154,82,25,131/-. This according to the petitioner has been passed without issuing the show cause notice as also furnishing the draft assessment order which otherwise is a must after the introduction of the faceless assessment under Section 144(B). The prayer sought for are as follows :

7(a) quash and set aside the impugned order at Annexure -’A’ to this petition;

(b) pending the admission, hearing and final disposal of this petition, to stay implementation and operation of the order at Annexure A to this petition.

(c) any other and further relief deemed just