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RAJIV SHAKDHER, TALWANT SINGH
Lokesh Constructions P Ltd – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
JUDGMENT
Rajiv Shakdher, J. -
CM APPL. 17023/2021
1. Allowed, subject to just exceptions.
CM APPL. 17024/2021
2. The prayer made in the captioned application is to grant exemption from filing requisite court-fee and sworn/notarised/affirmed affidavit. The captioned application is disposed of with a direction to the petitioner to place on record the duly sworn/notarised/affirmed affidavit and to deposit the requisite court-fee, within three days of the resumption of the normal and usual work pattern by this court.
W.P.(C) 5491/2021 and CM APPL. 17022/2021 [Application filed on behalf of petitioner, under Section 151 of the Civil Procedure Code, 1908, seeking stay on the operation of order passed by respondent, dated 07.04.2021.]
3. Via this writ petition, challenge has been laid to the assessment order dated 07.04.2021, passed under Section 143(3) read with Section 143(3A) & 143(3B) of the Income Tax Act, 1961 (in short, 'the Act'), as also the consequential notice of demand issued under Section 156 of the Act, and notice for initiation of penalty proceedings issued under Section 274 read with Section 270A of the Act.
4. To be noted, the impugned assessment order concerns Assessment Year
The impugned assessment order and consequential notices were set aside as they were passed without issuance of a show cause notice-cum-draft assessment order, as required by Section 144B of the Act a....
Assessment orders must adhere strictly to procedural requirements, including show cause notices, to ensure fairness in the income assessment process.
Procedural safeguards mandated under the Income Tax Act must be adhered to, including issuing a show cause notice to the assessee before passing an assessment order.
The necessity of issuing a show cause notice cum draft assessment order before making any upward revision in income for assessment under the Income Tax Act, 1961.
The failure to consider the petitioner's reply and grant a hearing led to the setting aside of the assessment order and the direction for a fair hearing and speaking order by the Assessing Officer.
The assessment order was set aside due to breach of natural justice, specifically failure to consider the petitioner's objections filed before the order was made.
The absence of a show cause notice in tax assessments violates natural justice, requiring annulment of any adverse variations to taxable income.
Violation of principles of natural justice due to failure to provide a reasonable opportunity to file a reply to the Show Cause Notice and draft assessment order.
Assessment orders must uphold principles of natural justice, ensuring affected parties have a reasonable opportunity to respond, particularly in cases involving technical barriers to communication.
Failure to adhere to the directions in the Standard Operating Procedure (SOP) for Assessment Unit, which led to the quashing of the impugned notices and order.
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