GLIMPSE OF A LATEST VERDICT* *P.T.Lee Chengalvaraya Naicker Trust Vs. The Income Tax Officer and Anr.* W.P.No.16373 & Batch of 2021 Dated: 30.09.2022 *HONOURABLE DR. JUSTICE ANITA SUMANTH* disposed of the Writ Petition in the matter relating to *“Faceless Assessment – S.144B, IT Act, 1961 –Show Cause Notice not issued prior to passing final assessment”,* and further observed and held as follows:
[2/15, 07:27] sekarreporter1: *GLIMPSE OF A LATEST VERDICT*
*P.T.Lee Chengalvaraya Naicker Trust Vs. The Income Tax Officer and Anr.*
W.P.No.16373 & Batch of 2021
Dated: 30.09.2022
*HONOURABLE DR. JUSTICE ANITA SUMANTH* disposed of the Writ Petition in the matter relating to *“Faceless Assessment – S.144B, IT Act, 1961 –Show Cause Notice not issued prior to passing final assessment”,* and further observed and held as follows:
1) Show cause notice was issued, however, only a period of 1 working day was provided to file reply. Petitioner filed a request for adjournment, however, the same was not considered. Later, objections/reply was filed at an earlier time in the same day that order of assessment had been served on the Petitioner. Thus, in the interest of substantial Justice, since originally only 24 hours was provided to the Petitioner, and the passing of the impugned assessment order neither with reference to the Petitioner, nor granting effective opportunity of hearing cannot be accepted and therefore the impugned order was set aside. _[W.P. No. 14373 of 2021]_
2) It is clear, that the requirement of SCN (Show Cause Notice)/DAO (Draft Assessment Order) is mandatory and cannot be sidestepped by the respondents. In the case of faceless assessments as well, the procedure for scrutiny commences with the issuance of a statutory notice in terms of Section 143(2). The notices to be issued thereafter are part of the procedure for faceless assessments and cannot be equated to a notice under Section 143(2) of the Act. Reliance upon Section 144C is also of no assistance to the Respondent as Section 144C provides for a separate and distinct scheme of assessment and the issuance of a DAO is part of that scheme.
3) Though failure to issue the notices as provided in Section 144B would certainly vitiate the proceedings as being in violation of the principles of natural justice, it is an infirmity that may be cured by permitting such SCN/DAO to be issued now.
4) Thus, the impugned assessment orders were set aside and liberty was granted to complete the assessments de novo in accordance with law.
[2/15, 07:30] sekarreporter1: 💐