Validity of Faceless Assessment without issue of Show Cause Notice & Draft Assessment Order




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 Validity of Faceless Assessment without issue of Show Cause Notice & Draft Assessment Order

 

 

 

Author

CA. AJAY KUMAR AGRAWAL 

 

 

 

 

 DELHI HIGH COURT:-  FACELESS ASSESSMENT – NON ISSURANCE OF SHOW CAUSE NOTICE CUM DRFAT ASSESSMENT ORDER – REQUIRED U/S 144 B-

No.- W.P.(C) 5783/2021

Dated.- June 3, 2021

HON’BLE MR. JUSTICE RAJIV SHAKDHER AND HON’BLE MR. JUSTICE TALWANT SINGH

Petitioner Through: Mr. Rohit Jain with Mr. Aniket D. Agrawal, Ms. Manisha Sharma, Advs.

Respondents Through: Mr. Sanjay Kumar, Sr. Standing Counsel for the revenue.

O R D E R

[Court hearing convened via video-conferencing on account of COVID-19]

CM APPL. 18134/2021

  1. Allowed, subject to just exceptions.

CM APPL. 18135/2021

  1. The prayer made in the captioned application is to grant exemption from filing the requisite court-fee and sworn/notarised/affirmed affidavits along with the present petition. The captioned application is disposed of, with a direction to the petitioner, to file the duly sworn/notarised/affirmed affidavits and deposit the requisite court-fee, within three days of the resumption of the normal and usual work pattern by this court.

W.P.(C) 5783/2021 & CM APPL. 18133/2021[Application filed on behalf of the petitioner seeking stay on the operation of the impugned assessment order dated 30.04.2021 and consequential proceedings]

  1. This writ petition is directed against the assessment order dated 30.04.2021, passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (in short ‘the Act’), for the assessment year 2018-19.

3.1 Besides this, challenge is also laid by the petitioner to the notice of demand, issued under Section 156 of the Act, and notice for initiation of penalty proceedings, issued under Section 270A of the Act, of even date, i.e., 30.04.2021.

  1. Issue notice. Mr. Sanjay Kumar accepts service on behalf of the respondents/revenue.
  2. Mr. Kumar says that in view of the directions that we propose to pass, he does not wish to file a reply, and that he will argue the matter based on the record, presently available with the court.
  3. Thus, with the consent of the learned counsel for the parties, the petition is taken up for final hearing and disposal.

6.1. The principal grievance articulated on behalf of the petitioner is that the impugned assessment order dated 30.04.2021 was passed without issuance of a show cause notice-cum-draft assessment order; which is a mandatory requirement under Section 144B of the Act.

6.2. Since this aspect of the matter is not in dispute, we are of the view that the prayers made in the petition have to be allowed. It is ordered accordingly.

6.3. The impugned assessment order dated 30.04.2021, as also the notice of demand issued under Section 156 of the Act, and notice for initiation of penalty proceedings issued under Section 270A of the Act, of even date, shall stand set aside.

6.4. Liberty is, however, given to the respondents/revenue to pass a fresh assessment order, albeit, after adhering to the statutory requirements, inter alia, contained in Section 144B of the Act.

7. The writ petition is disposed of in the aforesaid terms. Consequently, pending application stands closed. The case papers shall stand consigned to the record.




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