Aravali Shikshan Avum Anusandhan Sansthan Vs National E-Assessment Centre — Rajasthan HC (2025) — LawSathi Research

Aravali Shikshan Avum Anusandhan Sansthan Vs National E-Assessment Centre — Rajasthan HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Interim stay (order dated 04.08.2021) of the effect and operation of the assessment order dated 21.04.2021 made absolute to continue till disposal of the pending appeal before the Commissioner of Income-Tax (Appeals); appellate authority expected to decide the appeal expeditiously within four months; all pending applications disposed of.

Issue for consideration

Whether the assessment order dated 21.04.2021 passed directly under Section 144-B read with Section 143(3) of the Act, without preparation of the draft assessment and without show cause notice/opportunity of hearing by the National Faceless Assessment Center, is sustainable. +1 more

Ratio / Principle

Since an appeal against the assessment order dated 21.04.2021 is pending before the Commissioner of Income-Tax (Appeals), this Court need not decide the issue raised in the petition, which is to be examined by the appellate authority.

Key takeaways

The writ petition is disposed of with the interim order dated 04.08.2021 made absolute, so that the stay of the effect and operation of the assessment order dated 21.04.2021 continues till the disposal of the pending appeal.ratio¶24
The Appellate Authority is expected to decide the pending appeal expeditiously within a period of four months.ratio¶24

Detailed headnote1 paragraphs

Rajasthan High Court (Division Bench, Jaipur) disposed of a writ petition by a trust challenging an assessment order dated 21.04.2021 said to have been passed directly under Section 144-B read with Section 143(3) of the Income-tax law, imposing an additional demand of Rs.1,09,15,600/- with a penalty notice under Section 270-A, without preparation of the draft assessment or grant of show cause notice/opportunity of hearing by the National Faceless Assessment Center. Finding that an appeal against the assessment order was already pending before the Commissioner of Income-Tax (Appeals), the Court declined to adjudicate the issue on merits and left it to the appellate authority. The interim order dated 04.08.2021 staying the effect and operation of the assessment order was made absolute to continue till disposal of the appeal, and the Appellate Authority was expected to decide the appeal expeditiously within four months.

[2025:RJ-JP:45086-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR

D.B. Civil Writ Petition No. 8256/2021

Aravali Shikshan Avum Anusandhan Sansthan, Having Its Address At SP-1, RIICO Industrial Area, Neemkathana, Sikar 332713 Through Its Secretary And Authorised Signatory Shri Kailash Chand Rohilan Son Of Shri Roormal

----Petitioner

Versus

National E-Assessment Centre, Delhi Having Its Address At Mayur Bhawan Connaught Lane, Barakhamba, New Delhi, Delhi 110001

Assistant Commissioner Of Income Tax (Exemptions), Having Its Address At Kailash Height, Lal Kothi, Tonk Road, Jaipur.

Central Board Of Direct Taxes, Having Its Address At North Block, New Delhi Through Its Chairman.

----Respondents

For Petitioner(s)	: Mr. Siddharth Ranka
	Ms. Satvika Jha
	Mr. Rohan Chattar
For Respondent(s)	: Mr. Parth Vashishtha for
	Mr. Shantanu Sharma

HON'BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA HON'BLE MR. JUSTICE BALJINDER SINGH SANDHU

Order

10/11/2025

At the time of issuing notice, this court passed the following order dated 04.08.2021:

"Learned counsel for the petitioner submits that in terms of Section 144-B added to the statute w.e.f. 01.04.2021, the National Faceless Assessment Center was required to provide an opportunity of hearing after draft assessment is prepared, however, learned counsel submits that neither the draft assessment provided under Section 144-B was prepared nor Show Cause

(2 of 2)

[2025:RJ-JP:45086-DB]

[CW-8256/2021]

Notice was given by the National Faceless Assessment Center for providing an opportunity and directly an order has been issued under Section 144-B read with Section 143(3) of the Act imposing an additional demand of Rs.1,09,15,600/- and issued penalty notice under Section 270-A of the Act.

Issue notice of the writ petition as well as stay application, returnable within six weeks.

Taking into consideration the assessment order dated 21.04.2021 (Annexure-9), the contentions of learned counsel for the petitioner prima facie appears to be correct accordingly. In the meanwhile, the effect and operation of the assessment order dated 21.04.2021 shall remain stayed "

Both the learned counsels are ad ide m that appeal is pending against the order dated 21.04.2021 before the Commissioner of Income-Tax (Appeals). Therefore, this Court need not decide the issue raised in the petition as the same has to be examined by the appellate authority.

Considering that the appeal is pending, we dispose of this writ petition, making our order dated 04.08.2021 absolute to continue till the disposal of the appeal. Further it is expected that the Appellate Authority shall decide the appeal expeditiously within a period of four months.

Accordingly, the writ petition stands disposed of.

All pending applications shall also stand disposed of.

(BALJINDER SINGH SANDHU),J (SANJEEV PRAKASH SHARMA),ACTING CJ

Gaurav/Diksha-115