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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G. S. KULKARNI, ADVAIT M. SETHNA, JJ
Vimal Trading – Appellant
Versus
National Faceless Assessment Centre (Formerly Known As) National E-assessment Centre), Income Tax Department – Respondent
| Table of Content |
|---|
| 1. petitioner filed nil return (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10) |
| 2. petitioner's counsel argues (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19) |
| 3. respondents support assessment order (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27) |
| 4. court emphasizes principles of natural justice (Para 28 , 29) |
| 5. court's ruling on assessment order (Para 30 , 31 , 32 , 33 , 34 , 35) |
| 6. writ petition must succeed (Para 36 , 37 , 38 , 39 , 40 , 41) |
JUDGMENT :
Advait M. Sethna, J.
1. Rule, made returnable forthwith. Respondents waive service. By consent of the parties, heard finally.
2. This petition is filed by the petitioner under Article 226 of the Constitution of India, assailing the following :- (i) the assessment order dated 9 September 2022, passed under Section 143(3) of the Income Tax Act, 1961 (“IT Act” for short)(“impugned final assessment order” fort short); (ii) the notice of demand dated 9 September 2022, issued under Section 156 of the IT Act ("impugned demand notice" for short); and (iii) two show cause notices dated 9 September 2022, proposing the initiation of penalty proceedings under Section 274 read with Section 270A and Section 271AA(1) of the IT Act ("impugned sho
The court held that failure to provide a personal hearing as mandated by Section 144B of the Income Tax Act renders the assessment order invalid, violating principles of natural justice.
The assessment order was invalid due to non-compliance with procedural requirements under Section 144B of the Income Tax Act, breaching principles of natural justice.
The assessment order was quashed due to violations of natural justice and failure to follow mandatory procedures under Section 144B of the Income Tax Act.
Issuance of Show Cause Notice, mentioning proposed additions under Section 144B(xvi), is a mandatory requirement and any assessment order passed without issuance of such Show Cause Notice is bad in l....
The right to personal hearing in faceless assessments under Section 144B of the Income Tax Act is mandatory and must be granted when requested, reinforcing adherence to principles of natural justice.
Taxation - Faceless Assessment System/e-Assessment - It is open to authorities to carry forward process in accordance with section 144B of Act, 1961 by giving opportunity of hearing to petitioner.
Assessment - Ground of violation of principle of natural justice-not giving adequate and effective opportunity of hearing not made out - series of adjournments were granted on the prayer of the petit....
The failure to provide a personal hearing in faceless assessments under the Income Tax Act constitutes a violation of the principles of natural justice, rendering the assessment order invalid.
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
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