Delhi HC directs NaFC to withdraw assessment orders without issuing draft notice under S. 144B [Read Order]

The Delhi High Court has directed the National Faceless  Assessment Centre to  withdraw the assessment order without issuing draft notice under section 144B of the Income Tax Act, 1961

The aforesaid observation was made on the writ petition filed by RMCI Private Limited challenging the final assessment order passed under Section 143(3) read with Section 144B of the Income Tax Act, 1961 (the Act) for the Assessment Year 2018-19. In instant case national faceless assessment centre of Delhi issued impugned final assessment order without issuing any draft assessment order and show cause notice and assessed the Petitioner’s income at Rs.25,85,92,670/- and vide notice of demand dated 8th September, 2021 had raised a demand of Rs.49,67,050/-.

In the instant case shri Piyush Kaushik appeared for the petitioner, and shri Mr.Puneet Rai, (Standing Counsel) appeared for the revenue. The counsel for the petitioner, stated that the impugned assessment order was passed without issuing the notice draft which was necessary under section 144B(1)(xvi)(b) of  the Income Tax Act, 1961, and had violated the section.

A two judge bench of, Justice Manmohan and Justice Navin Chawla   directed Ms. Reena Sinha Puri the Principal Chief Commissioner of National Faceless Assessment Centre(NFaC) to withdraw final assessment order passed in violation of principles of natural justice without issuing show cause notice and draft assessment order as well as without considering the reply and assessee’s request for a personal hearing.

 The bench also directed to take due care and checks in NFaC procedures and directed to file an affidavit, and so the principle chief commissioner, NFaC filed affidavit on steps taken for preventing the impugned issues. The court set aside the impugned assessment and directed respondent to issue the notice  to applicant according to law and continue the procedures .

To Read the full text of the Order CLICK HERE

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