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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
SAS Fininvest LLP – Appellant
Versus
National E-assessment Centre Income Tax Department New Delhi – Respondent
| Table of Content |
|---|
| 1. petition challenges assessment order. (Para 2) |
| 2. petitioner's argument on natural justice violation. (Para 3 , 4 , 5) |
| 3. respondent's claim of alternative remedy. (Para 6) |
| 4. court's observations on procedural mandate. (Para 7 , 8) |
| 5. violation of natural justice invalidates the order. (Para 9) |
| 6. assessment order set aside and remanded. (Para 10 , 11) |
JUDGMENT
Manmohan, J. (Oral)--The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the Assessment Order dated 31st March 2021 passed under Section 143(3) of the Income Tax Act, 1961 [the Act] and disputed demand raised under Section 156 of the Act, along with all consequent proceedings thereto.
3. Learned counsel for the Petitioner states that the Impugned assessment order passed is jurisdictionally flawed and bad in law since it is violative of the mandatory and binding natural justice requirements stipulated in faceless assessment scheme and relevant CBDT instructions.
4. He emphasises that no mandatory valid show cause notice as well as draft assessment order were issued before drawing an adverse inference against the petitioner-assessee qua stated additi
The Faceless Assessment Scheme mandates issuance of prior show cause notice and draft assessment order, and failure to comply invalidates the assessment order, upholding principles of natural justice....
Mandatory issuance of a show cause notice and draft assessment order under Section 144B of the Income Tax Act is critical; failure to comply voids the assessment.
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.
Taxation - Assessment order - Notice - No prior show cause notice as well as draft assessment order had been issued, there is a violation of principles of natural justice as well as mandatory procedu....
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 before passing the final assessment order under the Fa....
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.
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.
A writ petition is maintainable in cases of violation of natural justice, even when an appeal exists, especially concerning mandatory procedures outlined in statutory law.
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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