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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Rani Promoter Private Limited – Appellant
Versus
Additional Commissioner of Income Tax – Respondent
| Table of Content |
|---|
| 1. challenge to assessment order (Para 4) |
| 2. claims regarding void assessment order (Para 5 , 6 , 7) |
| 3. interpretation of section 143(3d) (Para 10 , 11) |
| 4. violation of section 144b procedures (Para 12 , 13 , 14) |
| 5. setting aside the assessment order (Para 15) |
| 6. directions for future proceedings (Para 16 , 17 , 18) |
JUDGMENT
Manmohan, J.: (Oral)
CM APPL. 20993/2021
1. Allowed, subject to all just exceptions.
2. Accordingly, the application stands disposed of.
W.P.(C) 6662/2021
3. The petition has been heard by way of video conferencing.
4. Present writ petition has been filed challenging the assessment order and notice of demand dated 06th April, 2021 for the Assessment Year [AY] 2018-19 and seeking a stay on the operation of the impugned assessment order and the consequential initiation of penalty proceedings.
5. Learned counsel for the Petitioner submits that the Assessment Order dated 06th April, 2021 for assessment year 2018-19 under Section 143 (3) of the INCOME TAX ACT , 1961 read with Sections 143 (3A) & 143(3B) is void ab initio as Sections 143 (3A) and 143(3B) of the Act had ceased to exist with effect from 01st April, 2021, in terms of Section 143 (3D)
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.
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....
Assessment orders must be issued in compliance with procedural requirements, including mandatory draft orders and show cause notices to uphold principles of natural justice.
Violation of Section 144B of the Income Tax Act, 1961 and the principles of natural justice in the assessment proceeding.
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.
Failure to issue a draft assessment order and show cause notice in tax assessments is a violation of statutory procedures and natural justice, justifying the annulment of the assessment order.
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....
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.
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.
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