No Draft Notice under S. 144B issued -Delhi HC directed NaFC to withdraw the Assessment Order

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No Draft Notice under S. 144B issued -Delhi HC directed NaFC to withdraw the Assessment Order

Here is an important High Court Order which has quashed the assessment oder for the reason that the draft assessment order was not issued prior to passing of the order.

The case detail is as under: 

Rmsi Private Limited v. NFAC(2022) 440 ITR 245/ 285 Taxman 708 (Delhi)(HC)

Let us have a short Overview of the case;

Facts:

  1. Assessment Order was passed without show cause notice and draft assessment order U/S 144B of the Income Tax Act.
  1. A writ petition had been filed challenging the impugned final assessment order dated 8th September, 2021 issued under Section 143(3).

Delhi HC held as below:

  1. In view of section 144B(9) any assessment order not made in accordance with the procedure laid down in section 144B would be non est.
  1. The Principal Chief Commissioner is directed to examine whether the National Faceless Assessment Centre would withdraw the final assessment order passed in violation of principles of natural justice and without issuing show-cause notice and draft assessment and without considering the reply and the assessee’s request for a personal hearing.

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