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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
SRF Ltd. – Appellant
Versus
National Faceless Assessment Centre, Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order and filing delays (Para 4 , 5 , 6 , 7 , 8 , 9) |
| 2. jurisdiction and procedural mandates in assessments (Para 10) |
| 3. acceptance of remittance to drp by respondents (Para 11) |
| 4. quashing of assessment and procedural directions (Para 12) |
| 5. disposition of the writ petition and administrative orders (Para 13 , 14) |
JUDGMENT
Manmohan, J.: (Oral)
CM APPL. 20376/2021 (exemption)
1. Allowed, subject to all just exceptions.
2. Accordingly, the application stands disposed of.
W.P.(C) 6484/2021 & CM APPL. 20375/2021
3. Present petition has been heard by way of video conferencing.
4. Present writ petition has been filed challenging the final assessment order dated 30th June, 2021 passed under Section 143(3) read with Sections 144C(3) and 144B of the Income Tax Act, 1961 [`the Act'] and the demand notice of Rs. 56,76,09,018/- issued under Section 156 of the Act for the Assessment Year 2017-18. Petitioner also seeks directions to the Respondents not to take any action or initiate further proceedings in furtherance of the impugned assessment order and demand notice.
5. Learned counsel for the Petitioner states that vide draft assessment order da
The court emphasized the importance of complying with time limits and the jurisdiction of the Assessing Officer to pass assessments in conformity with the directions of the Dispute Resolution Panel.
Violation of mandatory procedure under Section 144C of the Income Tax Act and a circular issued by the Central Board of Direct Taxes led to the setting aside of the Assessment Order and restoration o....
An assessment order passed without compliance with procedural requirements of the Income Tax Act is invalid and must be set aside.
The central legal point established in the judgment is the importance of adhering to statutory procedures and timelines in the assessment process under the Income Tax Act.
A taxpayer must file objections to proposed tax assessments with both the Dispute Resolution Panel and Assessing Officer for effective challenge under the Income Tax Act.
An assessment order finalized without allowing objections to a draft constitutes a jurisdictional defect, rendering the order invalid.
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
The court established that a final assessment order cannot be issued without awaiting directions from the Dispute Resolution Panel when objections have been timely filed.
The court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
Assessment orders must respect natural justice, providing parties an effective opportunity to respond, especially during extraordinary situations like a pandemic.
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