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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Novelty Merchants Private Limited – Appellant
Versus
National Faceless Assessment Centre Delhi – Respondent
| Table of Content |
|---|
| 1. challenge of assessment order's validity. (Para 1) |
| 2. arguments regarding procedural violations. (Para 2 , 4) |
| 3. court observes violation of natural justice. (Para 5 , 6 , 7 , 8) |
| 4. order to set aside assessment and remand. (Para 9 , 10) |
JUDGMENT
Manmohan, J. (Oral)--Present writ petition has been filed challenging the Assessment Order, Demand Notice and Notice for Penalty dated 23rd April 2021 passed by the respondents under Section 143(3) read with Section 144B, Section 156 and Section 274 read with Section 271AAC(1) of the Income Tax Act 1961 (hereinafter referred to as the `Act') for the AY 2018-19.
2. Learned counsel for the Petitioner states that the impugned assessment order has been passed without issuing the mandatory show-cause notice and draft assessment order 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 Section 144B. He also states that in the absence of a show cause notice, the petitioner has been deprived of an opportunity to seek personal hearing.
3. Issue Notice. Mr. Ajit Sharma accepts notice on behalf of the Respondents.
4. Learned counsel for the respond
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....
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.
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.
Violation of the principle of natural justice and mandatory procedure under the 'Faceless assessment Scheme' and Section 144B of the Income Tax Act, 1961 renders the assessment order, demand notice, ....
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.
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....
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 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....
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.
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