ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE A.J.DESAI)

1.Rule. Learned advocate Mr. Munjaal Bhatt waives service of rule on behalf of the respondents. With the consent of learned advocates appearing for the respective parties, the present petition is taken up for final disposal today itself.

2.By way of the present petition under Article 226 of the Constitution of India, the petitioner -

assessee has prayed as under :-

"(A) This Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of certiorari or any other appropriate writ, order or direction quashing the assessment order passed by Respondent u/s. 143 (3) r.w.s. 144B dated 8.6.2022 at Annexure - N and demand notice u/s.156 of even date at Annexure O.

(B) This Hon'ble Court be pleased to call for the records of the proceedings, look into them and be pleased to issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondent to grant complete stay of demand arising out of assessment order passed u/s. 143 (3) r.w.s. 144 B dated 8.6.2021 at Annexure N.

(C) Pending the hearing and final disposal of this application, this Hon'ble Court be pleased to stay operation and implementation of assessment order passed u/s. 143(3) r.w.s. 144B dated 8.6.2021 at Annexure N and further stay the recovery of demand in pursuance of notice issued u/s.156 at Annexure O."

3.In response to the notice issued by this Court, the respondents have filed affidavit-in-reply dated 22.9.2021, to which affidavit-in-rejoinder dated 20.10.2021 has been filed by the petitioner.

4.Brief facts of the case are as under :-

4.1 The petitioner is a Company engaged in the business of providing financial assistance to various enterprises of Government of Gujarat and is being regularly assessed at PAN No.AAACG5581B under the Income Tax Act, 1961 (hereinafter referred to as 'the Act, 1961').

4.2 The petitioner filed its return of income for the Assessment Year 2018-2019 declaring total income of Rs.172,99,73,890/- on

30.10.2018.

4.3 The case of the petitioner was selected for scrutiny assessment and for the said purpose, notice u/s.143 (2) was issued on

22.9.2019 by the respondent.

4.4 The petitioner vide letter dated 5.10.2019 responded to the above notice and submitted the explanations/details called for by the department. Thereafter, the petitioner received notice dated 10.1.2020 u/s. 142(1) from the respondent asking for certain details/

clarifications. The petitioner submitted its response vide reply dated 27.1.2020 and furnished the details / explanations called for. The petitioner also addressed yet another letter dated 13.2.2020 to respondent no.2 furnishing further details.

4.5 Meanwhile, the Income Tax Department introduced National Faceless Assessment Scheme from 13.8.2020 and accordingly, the assessment of the petitioner was transferred to National e- Assessment Centre, Delhi. Thereafter, the respondent No.1 issued a notice dated 27.11.2020 u/s.142 (1) asking the petitioner to provide the details of investment and expenditure incurred for earning income from investment. The petitioner submitted its response vide letter dated 11.12.2020. Respondent No.1 once again issued notice u/s.142 (1) dated 9.12.2020 asking the petitioner to submit further details, to which the petitioner responded to vide letter dated 23.12.2020.

4.6 Thereafter, show-cause notice dated 1.4.2021 was issued to the petitioner. The petitioner vide letter dated 12.4.2021 furnished detailed reply to the said show-cause notice and requested the respondent to provide opportunity of personal hearing. The petitioner received assessment order dated 8.6.2021 passed u/s.143 (3) r.w.s. 144B of the Act, 1961 making addition of Rs.175,45,38,914/- to the returned income of the petitioner and thereby, assessing the income of the petitioner at Rs.348,45,12,804/-. Hence this petition.

5.Learned advocate Mr. Manish J. Shah appearing for the petitioner submitted that the impugned ord