Faceless assessment order without issuing draft assessment order or show cause notice set aside- Delhi High Court
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Case Details: |
Anju Jalaj Batra vs. National E-Assessment Centre Additional Joint Deputy Assistant Commissioner of Income Tax |
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Appeal No.: |
W.P. (C) 6233/2021 |
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Order pronounced by: |
Delhi High Court |
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Date of Order: |
08-07-2021 |
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Assessment Year: |
2018-19 |
Brief Facts:
- The petitioner was issued notice u/s 142(1) of the Act, to which the petitioner replied and furnished relevant details/ explanations. Despite the petitioner’s replies, the authorities issued impugned assessment order without issuing a mandatory draft assessment order or a show cause notice to the petitioner.
- The L’d counsel for the petitioner stated that in a similar case in Smart Vishwas Society vs. National Faceless Assessment Centre Delhi & Ors, WP(C) 5348/2021, the Division Bench of this Court had quashed the assessment order and consequential notices.
- The L’d counsel for petitioner further stated that the argument of revenue and the assessment order is contrary to the provisions of section 144B of the Act which prescribes the manner/ procedure of faceless assessment scheme.
High Court order:
- The learned counsel for the petitioner is correct in submitting that Section 144B of the Act has been violated and the assessment proceeding has been completed in violation of the principles of natural justice.
- Consequently, the impugned assessment order issued u/s 144 read with section 144B of the Act as well as demand notice issued u/s 156 of the Act and notice initiating penalty u/s 270A and 271AAC (1) of the Act are set aside.
- However, the revenue is given liberty to pass a fresh assessment order in accordance with the law.
