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RAJIV SHAKDHER, GIRISH KATHPALIA
Bengal And Assam Company Ltd. – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
1. Issue notice.
1.1. Mr Sanjay Kumar, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
2. Given the directions that we propose to issue, Mr Kumar says that he does not wish to file a counter-affidavit, and he will argue the matter based on the record presently available with the court.
2.1. Therefore, with the consent of learned counsel for the parties, the matter is taken up for hearing and final disposal at this stage itself.
3. This writ petition is directed against the assessment order dated 16.05.2023 passed by respondent no.1 under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 [in short, "Act"].
4. The impugned assessment order concerns Assessment Year (AY) 2014-15.
5. Learned counsel for the petitioner submits that the statutory notices, that were required to be issued to the petitioner prior to the Assessing Officer (AO) taking recourse to the best judgment assessment route, had not been served on the e-mail address which was indicated by the petitioner, both at the time of filing the initial return, and thereafter, on the
Failure to serve statutory show cause notices at the correct e-mail address before resorting to best judgment assessment renders the assessment order invalid under the Income Tax Act, 1961.
The central legal point established is the requirement to adhere to the principles of natural justice, including providing sufficient time for the party to respond to notices.
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.
The court emphasized the importance of providing a personal hearing to the assessee as per the provisions of Section 144B(6)(vii) and (viii) of the Income Tax Act, 1961.
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 court emphasized the principle of natural justice and the right to be heard, setting aside the impugned assessment order due to the denial of the petitioner's opportunity to respond to the show-c....
Valid service of notice under section 148 is essential for jurisdiction; failure to serve invalidates the assessment order.
Failure to inform the petitioner about the decision on their request for accommodation constituted a breach of principles of natural justice, warranting the setting aside of the assessment order and ....
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