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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Sudev Industries Ltd. – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. writ petition challenging assessment order. (Para 1) |
| 2. contentions on legality of the assessment order. (Para 2 , 3 , 4) |
| 3. court's requirement for compliance with section 144b. (Para 5 , 6 , 7) |
| 4. set aside assessment order for lack of opportunity to be heard. (Para 8) |
| 5. conclusion and disposal of the writ petition. (Para 9 , 10) |
JUDGMENT
Manmohan, J. (Oral)
The petition has been heard by way of video conferencing.
1. The present writ petition has been filed challenging the assessment order dated 13th May, 2021 under Section 144 read with Section 254 of the Income Tax Act (hereinafter referred to as the 'Act') and the accompanying notice of demand under Section 156 of the Act and notices of initiation of penalty proceedings under Section 271(1) (b) and 271(1)(c), in the case of the petitioner for the Assessment Year 1995-96.
2. Learned counsel for the petitioner submits that the Impugned Order and the accompanying notice issued by the respondents are patently illegal, bad in law, issued without application of mind and the same are against the principles of natural justice.
3. Learned counsel for the petitioner submits that the Impugned Assessment order has be
Assessments without proper prior notice and opportunity to be heard violate natural justice principles as mandated under Section 144B of the Income Tax Act.
Taxation - Faceless assessment - Section 144B(7) of Act mandatorily provides for issuance of a prior show cause notice and draft Assessment Order before issuing final Assessment Order.
The failure to grant a personal hearing during assessments constitutes a violation of natural justice, mandating the setting aside of the impugned orders.
The court emphasized the obligation of the revenue to consider the request for a personal hearing and to frame standards, procedures, and processes for approving such requests under Section 144B(7) o....
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 requirement to provide an opportunity of personal hearing to the assessee as per the provisions of Section 144B (7) and the mandatory proced....
The court ruled that the failure to provide a personal hearing upon request in the faceless assessment process violated principles of natural justice, rendering the assessment order invalid.
The court upheld the necessity of granting a personal hearing under Section 144B(7) of the Income Tax Act, emphasizing that natural justice principles must be respected in assessment processes.
The court emphasized the importance of granting the petitioner an opportunity of hearing as required by Section 144B(7) of the Income Tax Act, and held that the failure to do so violated the principl....
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 ....
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