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MANMOHAN, NAVIN CHAWLA
St Microelectronics 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 final assessment order dated 22nd June 2021 passed under section 143(3) read with Section 144B of the Act, and the impugned notices issued under Section 156 and Section 274 read with section 271(1)(c) of the Act by the Respondent No. 1 in the case of the petitioner for Assessment Year [AY] 2016-17 and all proceedings initiated pursuant thereto.
3. Learned counsel for the Petitioner submits that the respondent no. 1 erred in assuming jurisdiction to pass the final assessment order dated 22nd June 2021 under Section 143(3) read with Section 144B of the Act without adhering to the conditions laid down in case of an eligible assessee as per Section 144C(1) of passing first a draft assessment order. In support of his submission, he relies upon the judgment in the case of Vijay Television Private Limited vs DRP, (2014) 369 ITR 113 (Mad) wherein it has been held as under:-
"33.......In any event, such an order dated 26.03.2013 passed by the second respondent can only be construed as a final order passed in violation of the statutory provisions of the Act.
The central legal point established is that the Assessing Officer must adhere to the mandatory requirement of passing and forwarding a draft assessment order to the Assessee before passing a final as....
Final assessment orders under the Income Tax Act require a prior draft assessment order as mandated by Section 144C(1) to ensure jurisdictional validity.
An assessment order can be challenged through a writ petition on jurisdictional grounds even if an appeal has been filed, especially where the order is invalid due to procedural changes.
Draft assessment order under section 144C with demand notice and penalty initiation is invalid as final order; mandatory procedure violation jurisdictional and incurable, quashing assessment.
The central legal point established in the judgment is the importance of adhering to statutory procedures and timelines in the assessment process under the Income Tax Act.
Violation of mandatory procedure under Section 144C of the Income Tax Act and a circular issued by the Central Board of Direct Taxes led to the setting aside of the Assessment Order and restoration o....
The central legal point established is the requirement of issuing a show cause notice to the petitioner as mandated by Section 144B(1)(xvi) of the Income Tax Act, emphasizing the principles of natura....
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