Legal Provision
As per section 144B(7) (vii), for the purposes of faceless assessment, in a case where a variation is proposed in the draft assessment or final draft assessment order or revised draft assessment order and an opportunity is provided to the assessee by serving a notice calling upon him to show cause as to why the assessment should not be completed as per such draft or final draft or revised draft assessment order, the assessee or his authorized representative, as the case may be, may request for personal hearing so as to make his oral submissions or present his case before the income tax authority in any unit.
Analysis
In the case of Sanjay Aggarwal Vs NFAC, Delhi dated 2.06.2021, It was held that In clause (vii) of Section 144B(7), liberty is given to the assessee to ask for personal hearing but the use of the word “may” in section 144B(7)(viii) reading as “the chief commissioner Or the director-general In charge of the National Faceless Assessment Centre (NFAC) under which the concerned unit is set up may approve the request for personal hearing referred to in clause vii if he is of the opinion that the request is covered by the circumstances referred to in sub-clause h of clause xii” in no way absolves the department from considering the request made for a personal hearing.
Further, as per Section 144B(xii), the Principal Chief Commissioner or the Principal Director General has been given the power to frame standards, procedures, and processes for approving the request for personal hearing. In the absence of such standards, procedures, and processes, it becomes incumbent on the part of the department to provide personal hearing and not to disregard such requests.
Conclusion
Hence, it is concluded in the wake of the above judgment that in cases where procedures are in place so as to identify circumstances in which personal hearing can be permitted, the request for personal hearing should be entertained on the basis of same but where such procedures are missing, the department cannot disregard such requests for personal hearing. In the event an order is passed in complete disregard of such request then the same will be quashed.
