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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Javin Construction Private Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. writ petition challenging assessment order (Para 1) |
| 2. violation of natural justice argued (Para 2) |
| 3. court denied adjournment request (Para 3 , 4) |
| 4. mandatory notice requirement under section 144b (Para 5 , 6) |
| 5. assessment order set aside and remanded (Para 7) |
| 6. writ petition disposed with directions (Para 8 , 9) |
JUDGMENT :
Manmohan, J. (Oral)
The petition has been heard by way of video conferencing.
1. Present writ petition has been filed challenging the impugned assessment order, notice of demand, show cause notice for imposition of penalty under Section 274 read with Section 271AAC(1) and penalty under Section 274 read with Section 270A of the Income Tax Act, 1961 [the Act] dated 22nd April 2021.
2. Learned counsel for the Petitioner states that the impugned assessment order has been passed without issuing a show-cause notice and draft assessment order which is mandated under Section 144B(1)(xvi)(b) of the Act. He states that the Respondent's action is violative of the principles of natural justice and the provisions of the Section 144B.
3. Issue Notice. Mr.Udit Sharma, Advocate appearing on behalf of Ms.Vibhooti Malhotra accepts notice for the responde
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.
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....
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.
Procedural due process in tax assessments requires adherence to statutory mandates, including the issuance of show cause notices, failure of which invalidates the assessment order.
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.
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 before passing the final assessment order under the Fa....
Taxation - Show cause notice - Faceless assessment - 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 ma....
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 ....
Mandatory procedures under the Income Tax Act for show cause notices and draft assessments must be followed to ensure natural justice; failure to comply renders the assessment order invalid.
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