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MANMOHAN, NAVIN CHAWLA
SaFacilities Management Private Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT
Manmohan, J. - The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the impugned assessment order dated 21st April 2021 passed by Respondent No. 1 under Section 143(3) read with 144B of the Income-tax Act, 1961 (for short the Act ).
3. Mr. Manuj Sabharwal, learned counsel for the Petitioner states that the impugned assessment order dated 21st April 2021 has been passed, without adherence to the statutory provisions contained in clauses (xiv) to (xvi) of Section 144B (1), and 144B (9) of the Act.
4. It is the petitioner s claim that the impugned assessment order was passed without issuing a draft assessment order and the variation made in the declared income was carried out without issuance of a show cause notice. Thus the contention is that the impugned assessment order had been passed in violation of the aforesaid provisions of the Act and is non est in law.
5. Per contra, Mr. Ruchir Bhatia, learned counsel for the respondents submits that Section 144B of the Act does not apply as the assessment year in issue is 2018-2019.
6. In rejoinder, learned counsel for the petitioner relies on the circular issued by the CBDT dated
The mandatory nature of the provisions under Section 144B(1)(xvi)(b) and 144B(9) of the Income-tax Act, emphasizing the consequences of non-compliance with the procedural requirements.
Failure to issue a draft assessment order and show cause notice in tax assessments is a violation of statutory procedures and natural justice, justifying the annulment of the assessment order.
The court held that an assessment order is invalid if not preceded by a show cause notice, as required by Section 144B of the Income Tax Act.
Assessment orders under the Income Tax Act must comply with mandatory procedural requirements, including issuing a show-cause notice and draft assessment order, to uphold principles of natural justic....
The central legal point established in the judgment is the mandatory requirement of issuing a prior show cause notice and draft assessment order under the Faceless Assessment Scheme as stipulated in ....
Assessment orders must be issued in compliance with procedural requirements, including mandatory draft orders and show cause notices to uphold principles of natural justice.
Violation of Section 144B of the Income Tax Act, 1961 and the principles of natural justice in the assessment proceeding.
Violation of Section 144B of the Income Tax Act and principles of natural justice.
The assessment order was void ab initio as Sections 143(3A) and 143(3B) had ceased to exist with effect from 01st April, 2021, and there was a failure on the part of the Respondents to comply with th....
Taxation - Show cause notice - Faceless assessment - No prior show cause notice as well as draft assessment order have been issued, there is a violation of principles of natural justice as well as ma....
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