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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Anand NVH Products Private Limited – Appellant
Versus
National E Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge to the assessment order under the income tax act (Para 1) |
| 2. arguments on procedural violations by respondent (Para 2) |
| 3. court's analysis of mandatory procedure violations (Para 3 , 4) |
| 4. result of the case: order set aside and restored (Para 5 , 6) |
JUDGMENT
Manmohan, J. (Oral)
The petition has been heard by way of video conferencing.
CM Appl. 24646/2021 (for exemption)
Allowed, subject to just exceptions.
Accordingly, present application stands disposed of.
W.P.(C) 7936/2021 & CM APPLs. 24645-646/2021
1. Present writ petition has been filed challenging the Assessment Order dated 15th May, 2021, notice of demand issued under Section 156 and notice for initiating penalty proceeding under section 271AAC(1) of the Income Tax Act, 1961 [`the Act'] passed by Respondent No. 1 under Section 143(3) read with Section 144C for the assessment year 2017-18 and restoring the proceedings at the level of Dispute Resolution Panel (`DRP').
2. Learned counsel for the Petitioner states that Respondent No.1 erred in passing the impugned Final Assessment Order on 15th May 2021, without waiting for the decision of the DRP. He states that the petitioner had filed objections
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 court established that an assessment order must consider the taxpayer's responses as part of the mandatory procedure required by law, failure of which renders the order invalid.
The assessment order is to be passed only after considering the reply of the assessee as per Section 144B(1)(xxiv) of the Income Tax Act, and failure to do so constitutes a violation of the mandatory....
Jurisdiction to issue assessment orders is invalid if objections are pending with the Dispute Resolution Panel; proper compliance with procedures outlined in tax legislation is essential for lawful a....
The court emphasized the importance of complying with time limits and the jurisdiction of the Assessing Officer to pass assessments in conformity with the directions of the Dispute Resolution Panel.
An assessment order finalized without allowing objections to a draft constitutes a jurisdictional defect, rendering the order invalid.
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.
A taxpayer must file objections to proposed tax assessments with both the Dispute Resolution Panel and Assessing Officer for effective challenge under the Income Tax Act.
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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