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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Sams Facilities Management Private Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. violation of statutory procedure in assessment. (Para 2 , 3 , 4) |
| 2. applicability of section 144b depends on assessment year. (Para 5 , 6) |
| 3. mandatory issuance of show cause notice under section 144b. (Para 7 , 8 , 9) |
| 4. impugned assessment order set aside, remand for proper procedures. (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 impugned assessment order dated 21st April 2021 passed by Respondent No. 1 under Section 143(3) read with 144B of the Income-tax Act, 1961 (for short `the Act').
3. Mr. Manuj Sabharwal, learned counsel for the Petitioner states that the impugned assessment order dated 21st April 2021 has been passed, without adherence to the statutory provisions contained in clauses (xiv) to (xvi) of Section 144B (1), and 144B (9) of the Act.
4. It is the petitioner's claim that the impugned assessment order was passed without issuing a draft assessment order and the variation made in the declared income was carried out without issuance of a show cause notice. Thus the contention is that the impugned assessment order had been passed in vi
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.
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.
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.
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 ....
Assessment orders must be issued in compliance with procedural requirements, including mandatory draft orders and show cause notices to uphold principles of natural justice.
The assessment order was void ab initio as Sections 143(3A) and 143(3B) had ceased to exist with effect from 01st April, 2021, and there was a failure on the part of the Respondents to comply with th....
Violation of Section 144B of the Income Tax Act, 1961 and the principles of natural justice in the assessment proceeding.
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 assessment order was invalid post 1st April 2021 due to non-compliance with mandatory provisions under the Income Tax Act and principles of natural justice.
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