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Challenging the assessment order passed by NFAC as without territorial jurisdiction in Delhi
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Recently, the assessment order passed by NFAC as without territorial jurisdiction was challenged in the Delhi HC in the following case:
S K SRIVASTAVA (W.P.(C) 4845/2022)
Let us have a short overview of the case:
Facts:
1. The petitioner has invoked the writ jurisdiction to quash and set aside the notice dated 27.03.2021 issued under Section 148 of the Act for A.Y. 2016-17.
2. The petitioner has also challenged the notice dated 04.03.2022 issued under Section 144 of NFAC for framing an ex-parte assessment of Writ petitioner for A.Y. 2016-17 and that such an order is without territorial jurisdiction.
3. The petitioner has submitted that the petitioner did not have any income, as defined under Section 4 and therefore was not obliged to file return under Section 139 (1).
Hon. Delhi HC observed and held as under:
1. National Faceless Assessment Centre is a governing authority for the Faceless IT Assessment System. The Faceless Assessment Scheme provides the procedure to be followed for the purpose of faceless assessment.
IT Act provides complete machinery for the assessment/ reassessment of tax, imposition of penalty and for obtaining relief with respect to an improper order.
2. One ought to not abandon this machinery and invoke the jurisdiction of the High Court u/A 226 of the Constitution when adequate remedy is available to him.
3. In a NFAC disposal of the objections and framing of the assessment has actually been done by the AO. The only difference is that unlike earlier, the orders have been conveyed by NAFAC instead of A.O. directly.
4. There is no illegality in the National Faceless Assessment Scheme as provided in the statute under Section 144B. The object is to eliminate the human interface between the Income Tax Authority and assessee to the extent technologically feasible.
Conclusion:
Delhi HC concluded that the faceless assessment scheme has proper jurisdiction in passing orders.
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