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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Globe Capital Foundation – Appellant
Versus
National E-Assessment Centre – Respondent
| Table of Content |
|---|
| 1. legal basis for challenging assessment order. (Para 2) |
| 2. violation of natural justice alleged. (Para 3) |
| 3. mandatory procedural requirements for faceless assessment. (Para 4 , 5 , 6) |
| 4. remand for proper procedure in assessment. (Para 7) |
| 5. final order and directions on the matter. (Para 8 , 9) |
JUDGMENT
Manmohan, J. (Oral)--The hearing has been conducted through video conferencing.
2. Present writ petition has been filed challenging the impugned assessment order dated 17th April 2021 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 [the Act] in the case of the Petitioner for Assessment Year [AY] 2018-19 and all consequent proceedings thereto.
3. Learned counsel for the Petitioner states that the impugned order passed by the Respondent is illegal, bad in law and in violation of principles of natural justice. He emphasises that in the present case, the Petitioner was not issued a show-cause notice and draft assessment order.
4. Today also, learned counsel for the respondent prays for an adjournment to obtain instructions. Though, on 13th May, 2021, the learned counsel for the respondent had been granted six weeks to file a counter af
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 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 ....
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.
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.
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....
Assessment orders under Section 144B of the Income Tax Act require prior issuance of a show cause notice and draft order; failure to comply violates natural justice.
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.
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.
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.
Taxation - Assessment order - No prior show cause notice as well as draft assessment order have been issued, there is a violation of principles of natural justice as well as mandatory procedure presc....
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