Back
IN THE HIGH COURT OF DELHI
Manmohan, Navin Chawla, JJ.
Ramtech Consulting - Appellant
Versus
National E Assessment Centre Additional Joint Deputy Assist. Comm. of Income Tax Income Tax O - Respondent
W.P.(C) 6269 of 2021 & CM Nos. 19815-16 of 2021
Decided On : 14-07-2021
| Table of Content |
|---|
| 1. challenge of draft assessment order under the act. (Para 2) |
| 2. violation of natural justice principles noted. (Para 3 , 4) |
| 3. acceptance of remand to assessing officer. (Para 5 , 6) |
| 4. setting aside of orders and remand for fresh assessment. (Para 7) |
| 5. disposal of writ petition. (Para 8 , 9) |
JUDGMENT
1. The hearing has been conducted through video conferencing.
2. Present writ petition has been filed challenging the draft assessment order dated 25th March, 2021 passed under Section 143(3) read with Sections 144C of the Income Tax Act, 1961 (hereinafter referred to as `the Act') and also the consequential assessment order dated 24th May, 2021 passed under Section 143(3) r/w Section 144C(3) read with Section 144B of the Act by the respondent for the assessment year 2017-18.
3. Learned counsel for the petitioner states that the impugned draft assessment order dated 25th March, 2021 has been passed without issuance of a show cause notice, as mandated by Section 143(3A)/144B of the Act.
4. He submits that the impugned draft assessment order dated 25th March 2021 and the impugned consequential order dated 24th May, 2021 are in violation of the principal of natural justice enshrined in Faceless Assessment First Amendment Scheme 2021 and Section 144B of the Act.
5. Issue notice. Mr.Sanjay Kumar, Advocate accepts notice. He states that he does not wish to file any formal reply to the present writ petition. He further states that he has no objection if the petition is allowed and the matter is remanded back to the Assessing Officer for passing a fresh assessment order under Section 143(3) read with Sections 144B and 144C of the Act.
6. Learned counsel for the petitioner has no objection to the same.
7. Consequently, the impugned draft assessment order dated 25th March 2021 passed under Section 143(3) read with Sections 144C of the Act and the impugned Assessment order dated 24th May, 2021 passed under Section 143(3) r/w Section 144C(3) read with Section 144B of the Act are set aside and the matter is remanded back to the Assessing Officer for passing a fresh assessment order under Section 143(3) read with Sections 144B and 144C of the Act after giving a show cause notice to the petitioner under Section 144B(1) (xvi) of the Act. Let the said notice be issued within two weeks.
8. With the aforesaid directions, the present writ petition along with pending applications stand disposed of.
9. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.
Procedural fairness mandates issuance of a show cause notice in tax assessments, which was violated, leading to annulment of the assessment orders.
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 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 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....
The court held that an assessment order is invalid if not preceded by a show cause notice, as required by Section 144B of the Income Tax Act.
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 central legal point established in the judgment is the mandatory requirement of issuing a prior Show Cause Notice and draft assessment order before passing the final assessment order under the Fa....
The mandatory nature of the provisions under Section 144B(1)(xvi)(b) and 144B(9) of the Income-tax Act, emphasizing the consequences of non-compliance with the procedural requirements.
Violation of Section 144B of the Income Tax Act and principles of natural justice.
Non-issuance of mandatory Show Cause Notice in faceless assessments violates principles of natural justice, rendering such assessment orders invalid under the Income Tax Act.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
