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DELHI HIGH COURT
RAJIV SHAKDHER, TALWANT SINGH
Carlsberg India Private Limited – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. petitioner filed additional documents related to income-tax. (Para 1) |
| 2. response to a show cause notice is addressed. (Para 2 , 3) |
| 3. draft assessment order treated as show cause notice. (Para 4) |
| 4. pending application closed; case papers consigned. (Para 5) |
JUDGMENT
Rajiv Shakdher, J. (Oral)
[Court hearing convened via video-conferencing on account of COVID-19]
1. Pursuant to the last order, passed by us, i.e., order dated 01.06.2021, Mr. Ajay Vohra, learned senior counsel, who appears on behalf of the petitioner, says that the petitioner has filed additional documents including the relevant schedule appended to petitioner's income-tax return, i.e., Schedule BP.
2. Issue notice. Mr. Kunal Sharma accepts service on behalf of respondents/revenue.
3. Mr. Kunal Sharma says that the impugned order is, in effect, a show cause notice-cum-draft assessment order, to which reply/objections can be filed by the petitioner, and therefore, the writ petition need not be entertained at this stage.
3.1. Furthermore, Mr. Sharma says that if this Court were to direct that the impugned draft assessment order, notwithstanding its title, would be treated as a show cause notice-cu
The court established that a draft assessment order under the Income Tax Act should be treated as a show cause notice, ensuring procedural fairness.
Mandatory issuance of show-cause notice under Section 144B of the Income Tax Act is essential in assessment proceedings; failure to do so invalidates the assessment order.
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.
Assessment orders must adhere strictly to procedural requirements, including show cause notices, to ensure fairness in the income assessment process.
A breach of natural justice occurs when an assessment order is finalized before the noticee's response deadline, invalidating the 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 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....
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.
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