BY AD vs RAJA KANNAN

petitioner is the partner of the firm, M/s. Sona Fashion Jewellery, and had invested Rs.28,00,000/- in the said firm holding 4% of the shares. The petitioner, in response to the notice issued, filed return of income on 28.09.2020 but the same was treated as 'INVALID' in the ITBA systems. Thereafter, notice under Section 142(1) of the Act was issued to the assessee on 29.02.2020. The petitioner had objected to the re-opening of the assessment vide letter dated 12.11.2020. However, the said objection was rejected by a speaking order dated 20.08.2021. W.P.(C) NO.28468 OF 2022 -3-

2. The petitioner was issued a show cause notice dated 20.09.2021 along with a Draft Assessment Order requesting the assessee to furnish reply by 22.09.2021. The petitioner did not file any objection to the said Draft Assessment Order and therefore, the said amount of Rs.28,00,000/- was considered as the income of the petitioner in the assessment order in question came to be passed.

3. The learned counsel for the petitioner submits that only two days' time was granted to the petitioner to file objection to the Draft Assessment Order and the final assessment order came to be passed on 23.09.2021. The learned counsel for the petitioner has brought to the notice of this Court the Standard Operating Procedure for assessment unit under Faceless Assessment provisions as provided under Section 144B of the Income Tax Act. Clause N.13.1 would disclose that at least seven days time should be granted for filing reply to the show cause notice along with the Draft Assessment Order. This Court has also taken the view regarding minimum seven days time to be W.P.(C) NO.28468 OF 2022 -4- granted for filing reply to the show cause notice in the judgment dated 04.12.2023 passed in W.P.(C) No.31553 of 2022 in Aneesh v. Union of India and others].

4. Considering the aforesaid fact that the petitioner was not afforded a reasonable opportunity of seven days to file reply to the show cause notice along with a Draft Assessment Order inasmuch as notice was issued on

20.09.2021 and only two days' time was granted to the petitioner to file objection/reply to the show cause notice along with the Draft Assessment Order, I find some substance in the submission of the learned counsel for the petitioner regarding violation of the principles of natural justice. On this ground alone, this writ petition is allowed, the impugned assessment order is set aside. The matter is remanded back to the National Faceless Assessment Centre, Delhi to provide an opportunity for filing reply/objection to the show cause notice dated 20.09.2021. The National Faceless Assessment Centre is directed to provide the link for uploading the reply/objection to the show cause notice dated 20.09.2021 along with the Draft W.P.(C) NO.28468 OF 2022 -5- Assessment Order. After the link is activated, the petitioner should file reply within seven days thereafter. It is made clear that no further opportunity shall be granted to the petitioner. After seven days from the link is activated, the National Faceless Assessment Centre, Delhi shall proceed to finalise the assessment order under Section 147 read with Section 144B of the Income Tax Act, 1961. With the aforesaid direction, this writ petition stands finally disposed of. Sd/- DINESH KUMAR SINGH JUDGE W.P.(C) NO.28468 OF 2022 -6- APPENDIX OF WP(C) 28468/2022 PETITIONER'S EXHIBITS Exhibit-P1 Exhibit-P2 Exhibit-P3 Exhibit-P4 Exhibit-P5 Exhibit-P6 Exhibit-P7 Exhibit-P7(a)

4. THE TRUE COPY OF THE NOTIFICATION NO. 61/2019/F.NO. 370149/154/2019-TPL {S.O. 3264(E)} DATED 12.09.2019 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT THE TRUE COPY OF THE NOTIFICATION NO. 60/2020/F.NO. 370149/154/2019-TPL{S.O. 2745(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT THE TRUE COPY OF THE NOTIFICATION NO. 61/2020/F.NO. 370149/154/2019-TPL {S.O. 2746(E)} DATED 13.08.2020 ISSUED BY THE CENTRAL BOARD OF DIRECT TAXES, UNDER THE 1ST RESPONDENT THE TRUE COPY OF THE NOTICE DATED 18.03.2020 ISSUED BY THE INCOME TAX OFFICER, WARD 2, KANNUR (CURRENTLY THE 3RD RESPONDENT) THE TRUE COPY OF THE REPLY DATED 12.11.2020 SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT THE TRUE COPY OF THE NOTICE DATED 17.03.2021 ISSUED BY THE 2ND RESPONDENT FOR THE A.Y 2013-14 THE TRUE COPY OF THE LETTER DATED 22.03.2021 (WITHOUT ANNEXURES) FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT THE TRUE COPY OF THE E-ACKNOWLEDGMENT (DATED NIL) GENERATED IN THE IT PORTAL IN RESPECT OF THE FILING OF REPLY AND ANNEXURES W.P.(C) NO.28468 OF 2022 -7- Exhibit-P8 Exhibit-P9 Exhibit-P10 Exhibit-P11 THE TRUE COPY OF THE LETTER DATED 24.08.2021 ISSUED BY THE 3RD RESPONDENT THE TRUE COPY OF THE ASSESSMENT ORDER DATED 23.09.2021 ISSUED BY THE 2ND RESPONDENT FOR A.Y 2013-14 THE TRUE COPY OF THE NOTICE OF PENALTY DATED 23.09.2021 ISSUED BY THE 2ND RESPONDENT UNDER SECTION 274 READ WITH SECTION 271(1)(C) OF THE ACT THE TRUE COPY OF AN ARTICLE DATED 22.08.2021, DOWNLOADED FROM WWW.CACLUBINDIA.COM, PROVIDING INFORMATION RELATING TO THE GLITCHES IN THE NEW IT PORTAL