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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
International Management – Appellant
Versus
National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order (Para 2 , 3 , 4) |
| 2. procedural violations in assessment process (Para 5 , 6) |
| 3. assessment violated principles of natural justice (Para 7 , 8) |
| 4. conclusion and order of the court (Para 9 , 10) |
JUDGMENT
Manmohan, J. (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the assessment order dated 2nd April, 2021 passed by National Faceless Assessment Center, Delhi under Section 143(3) read with Sections 143(3A) and 143(3B) of the Income Tax Act, 1961 [for short `the Act'] for assessment year 2017-18. Petitioner further prays for a stay on the demand arising out of the aforesaid order.
3. Learned counsel for the petitioner states that the action of respondent in passing the impugned assessment order and making additions to the income is untenable in law inasmuch as the basis of addition was not furnished to the petitioner. He emphasizes that no draft assessment order was issued which is mandatorily required under the Faceless Scheme.
4. He points out that in a similar case being Smart Vishwas Society vs. National Faceless Assessment Centre Delhi (Earlier National E-Asses
Tax assessments must adhere to statutory procedures to uphold principles of natural justice, specifically the requirement for a draft assessment order as per Section 144B of the Income Tax Act.
Assessment orders must be issued in compliance with procedural requirements, including mandatory draft orders and show cause notices to uphold principles of natural justice.
The court reaffirmed that assessments must comply with statutory procedures to ensure natural justice, nullifying orders that do not adhere to the stipulated process outlined in Section 144B of the I....
Violation of Section 144B of the Income Tax Act and principles of natural justice.
Violation of Section 144B of the Income Tax Act, 1961 and the principles of natural justice in the assessment proceeding.
Mandatory procedures must be followed in tax assessments, ensuring that parties are given prior notice and opportunity for a hearing to uphold principles of natural justice.
The assessment order was void ab initio as Sections 143(3A) and 143(3B) had ceased to exist with effect from 01st April, 2021, and there was a failure on the part of the Respondents to comply with th....
A writ petition is maintainable in cases of violation of natural justice, even when an appeal exists, especially concerning mandatory procedures outlined in statutory law.
The assessment order was invalid post 1st April 2021 due to non-compliance with mandatory provisions under the Income Tax Act and principles of natural justice.
Mandatory procedures under the Income Tax Act for show cause notices and draft assessments must be followed to ensure natural justice; failure to comply renders the assessment order invalid.
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