PARUL BHARAT SHAH Vs. NATIONAL FACELESS ASSESSMENT CENTRE

JUDGEMENT

(1.) This Writ Petition filed under Article 226 of the Constitution of India challenges assessment order dtd. 2/9/2022 passed under Sec. 143(3) read with Sec. 144B of the Income Tax Act, 1961 ( "the Act "), notice of demand dtd. 2/9/2022 issued under Sec. 156 of the Act and show-cause notice dtd. 2/9/2022 for initiating penalty proceedings under Sec. 274 read with Sec. 270A of the said Act.

(2.) The case as stated in the petition is that the Petitioner had filed her return for the assessment year 2020-21 on 4/12/2020. By a notice dtd. 29/6/2021 issued to the Petitioner under the provisions of Sec. 143(2) of the Act, the Petitioner 's case was taken up for scrutiny and she was called upon to file her reply to a questionnaire(s) annexed to the notice within 15 days from the date of receipt thereof. By a notice dtd. 18/11/2021 issued under Sec. 142(1) of the Act, the Petitioner was called upon to submit details of accounts and documents specified in Annexure to the said notice, more specifically in reference to the gross and net agricultural income disclosed by the Petitioner in the amount of Rs.35,19,290.00 as against which, there was an expenditure of only Rs.2,40,800.00 incurred by her. The notice required the Petitioner to produce documents and details of crop grown on agricultural land claimed to be in her ownership, alongwith the documents of ownership pertaining to the said lands. In response to the said notice, the Petitioner filed her submissions on 4/12/2022, after which she received yet another notice dtd. 10/12/2021 under Sec. 142(1) of the Act, calling for further details as to ownership of her land holding and quantity of the crops grown thereon. The Petitioner filed her response on 22/12/2021 submitting therewith details of acquisition of the various agricultural lands from where she claims to have derived agricultural income. Alongwith her reply, the Petitioner also submitted revenue documents and details of the sale deed by which M/s. Palak Impex Pvt. Ltd., of which the Petitioner claims to be a Director has come into ownership of the land.

(3.) After considering the response of the Petitioner, the Respondents issued her a show-cause notice dtd. 3/2/2022, concluding that the agricultural income disclosed by the Petitioner in the amount of Rs.35,19,290.00 was actually derived from land which did not belong to the Petitioner and consequently the Respondents proposed that the entire income be added to the total income of the Petitioner under the head income from other sources under Sec. 56 of the Act. The show-cause notice called upon the Petitioner to file her response to the said notice by 10/2/2022 and further informed the Petitioner that after filing the written reply, she may request a personal hearing which would be conducted through video conferencing. The show-cause notice was accompanied with a draft assessment order. The said notice was issued by the National Face Less Assessment Scheme under the Act.