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DELHI HIGH COURT
MANMOHAN, NAVIN CHAWLA
Pooja Singla Builders and Engineers Private Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
| Table of Content |
|---|
| 1. challenging assessment order based on procedural errors. (Para 2) |
| 2. arguments on violation of natural justice principles. (Para 3 , 4 , 5 , 6) |
| 3. mandatory compliance with statutory procedures. (Para 7 , 8 , 9 , 10 , 11) |
| 4. impugned orders set aside, mandate to follow law. (Para 12) |
| 5. disposition of the writ petition. (Para 13 , 14) |
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 and notice of demand dated 07th April 2021 and also the impugned show cause notices dated 07th April 2021 and 05th August, 2021 for imposition of penalty under Section 274 read with Section 271AAC(1) of the Income Tax Act, 1961 [the Act] for the Assessment Year 2018-2019.
3. Mr.Ved Jain, 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 emphasizes that no mandatory valid show cause notice as well as draft assessment order had been iss
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.
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.
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 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....
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....
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.
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....
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 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....
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