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RAJIV SHAKDHER, GIRISH KATHPALIA
S. B. Distributors Acting Through Its Partners Petitioner 2, 3 And 4 – Appellant
Versus
Income Tax Officer Ward 35(1) Delhi – Respondent
JUDGMENT
Rajiv Shakdher, J. (Oral)
CM No.33933/2023
1. Allowed, subject to just exceptions.
W.P.(C) 8949/2023 & CM Appl. 33932/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Zoheb Hossain, learned senior standing counsel, accepts notice on behalf of the respondents/revenue.
3. In view of the directions that we propose to pass, Mr Zoheb Hossain says that counter-affidavit need not be filed in the matter, and that he will argue the matter based on the record presently available with the court.
4. Dr Rakesh Gupta, who appears on behalf of the petitioner, says that apart from anything else, the impugned assessment order dated 29.05.2023 passed under Section 147 read with Section 144 of the Income Tax Act, 1961 [in short, "the Act"] is flawed, as no show cause notice cum draft assessment order was served on the petitioner, proposing variation in income.
5. Dr Gupta says that on account of this fundamental flaw, the consequent steps taken by the Assessing Officer (AO), i.e., the issuance of demand notice dated 29.05.2023 and the penalty notices dated 29.05.2023 and 30.05.2023, are also unsustainable in law.
6. Mr Zoheb Hossain, lea
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 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....
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.
Failure to consider a request for accommodation on medical grounds by the Assessing Officer amounted to a breach of principles of natural justice, leading to the setting aside of the impugned assessm....
The court established that a draft assessment order under the Income Tax Act should be treated as a show cause notice, ensuring procedural fairness.
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 adhere strictly to procedural requirements, including show cause notices, to ensure fairness in the income assessment process.
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 ....
The absence of a show cause notice in tax assessments violates natural justice, requiring annulment of any adverse variations to taxable income.
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....
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