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BHARGAV D. KARIA, NIRAL R. MEHTA
Kaypee Enterprise – Appellant
Versus
Assessment Unit, Income Tax Department – Respondent
ORDER :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr.B.S.Soparkar for the petitioner and learned Senior Standing Counsel Mr.Karan Sanghani for learned Senior Standing Counsel Mr.Nikunt Raval for the respondent no.2.
2. By this petition under Article 227 of the Constitution of India, the petitioner has challenged the Assessment Order dated 11.03.2024 passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (for short “the Act”).
3. The assessee filed return of income for Assessment Year 2022-23 for declaring the income of Rs.1,63,13,600/- on 12.08.2022. It appears that thereafter, the notices were issued from time to time on 01.06.2023, 03.10.2023, 24.01.2024 and 04.03.2024 the
assessee filed reply to the notice issued under Section 143(2)/ 142(1) of the Act on 14.07.2023, 16.10.2023, 01.11.2023,
13.02.2024 and 07.03.2024.
4. After considering the replies filed by the petitioner a show-cause notice was issued along with the draft assessment order as per the provision of Section 144B of the Act on 04.03.2024 granting time to the petitioner upto 07.03.2024 to file the reply.
5. The petitioner on 05.03.2024 made an application for adjournment online, however the same
The court established that adherence to principles of natural justice is essential in tax assessments, particularly the right to a personal hearing.
Assessment - Ground of violation of principle of natural justice-not giving adequate and effective opportunity of hearing not made out - series of adjournments were granted on the prayer of the petit....
Taxation - Faceless assessment - Section 144B(7) of Act mandatorily provides for issuance of a prior show cause notice and draft Assessment Order before issuing final Assessment Order.
The assessment order was invalid due to non-compliance with procedural requirements under Section 144B of the Income Tax Act, breaching principles of natural justice.
The assessment order was quashed due to violations of natural justice and failure to follow mandatory procedures under Section 144B of the Income Tax Act.
The court established that adherence to procedural fairness, specifically adequate response time to Show Cause Notices, is essential in tax assessment proceedings.
Assessments without proper prior notice and opportunity to be heard violate natural justice principles as mandated under Section 144B of the Income Tax Act.
The failure to provide a personal hearing constitutes a breach of natural justice, necessitating the quashing of the assessment order.
The main legal point established in the judgment is that the assessment order passed under the Income Tax Act, 1961 must grant proper and meaningful opportunity to the assessee to respond to the show....
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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