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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
ST Microelectronics Private Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT
Manmohan, J. (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the final assessment order dated 22nd June 2021 passed under section 143(3) read with Section 144B of the Act, and the impugned notices issued under Section 156 and Section 274 read with section 271(1)(c) of the Act by the Respondent No. 1 in the case of the petitioner for Assessment Year [AY] 2016-17 and all proceedings initiated pursuant thereto.
3. Learned counsel for the Petitioner submits that the respondent no. 1 erred in assuming jurisdiction to pass the final assessment order dated 22nd June 2021 under Section 143(3) read with Section 144B of the Act without adhering to the conditions laid down in case of an eligible assessee as per Section 144C(1) of passing first a draft assessment order. In support of his submission, he relies upon the judgment in the case of Vijay Television Private Limited vs DRP, (2014) 369 ITR 113 (Mad) wherein it has been held as under:
"33...In any event, such an order dated 26.03.2013 passed by the second respondent can only be construed as a final order passed in violation of the statutory provisions of t
The central legal point established is that the Assessing Officer must adhere to the mandatory requirement of passing and forwarding a draft assessment order to the Assessee before passing a final as....
An assessment order can be challenged through a writ petition on jurisdictional grounds even if an appeal has been filed, especially where the order is invalid due to procedural changes.
An assessment order finalized without allowing objections to a draft constitutes a jurisdictional defect, rendering the order invalid.
An assessment order passed without compliance with procedural requirements of the Income Tax Act is invalid and must be set aside.
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....
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.
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.
Draft assessment order under section 144C with demand notice and penalty initiation is invalid as final order; mandatory procedure violation jurisdictional and incurable, quashing assessment.
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.
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