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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Floral Realcon Pvt. Ltd. – Appellant
Versus
National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. petition challenges assessment order and demand notice. (Para 1) |
| 2. arguments regarding procedural violations in assessment. (Para 2 , 3) |
| 3. court emphasizes mandatory issuance of show cause notice. (Para 4 , 5) |
| 4. impugned orders set aside; case remanded for proper procedure. (Para 6) |
| 5. order to be uploaded and communicated. (Para 7) |
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 under Section 143(3) read with section 144B and also the impugned notice of demand issued under Section 156 of the Income Tax Act, 1961 [the Act], both dated 23rd April 2021 and notice for penalty dated 11th June 2021 issued under Section 270A of the Act issued by the Respondent in the Petitioner's case for the Assessment Year 2018-19.
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 mandated under Section 144B(1)(xvi)(b) of the Act. He submits that the Respondent's action is violative of the principles of natural justice and the provisions contained in clau
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 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.
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.
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 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....
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....
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