Violation of Principles of Natural Justice and Non-Compliance of Provisions of S. 144B of the Income Tax Act: Calcutta HC quashes Assessment [Read Order]

The Calcutta High Court has quashed an assessment order under section 143(3) of the Income Tax Act, 1961 by on ground of violation of principles of natural justice and non-compliance of the provisions of section 144B of the Act.

The petitioner challenged the order by contending that a copy of the draft assessment order and providing opportunity of hearing to the petitioner to enable him to file objection or exception to the proposed draft assessment was not provided during the assessment proceedings.

While deleting the order, Justice Md. Nizamuddin held that “Considering the facts and circumstances of the case which appear from record and the submission of the parties and without going into the merits of the impugned assessment order on the ground of violation of principles of natural justice and non-compliance of relevant provisions of section 144B of the Income Tax Act, 1963, the impugned order dated April 19, 2021 under section 143(3) of the Act is set aside with a direction upon the respondent concerned to pass a fresh assessment order, after compliance of the relevant provisions of section 144B of the Act, within three months from the date of communication of this order.”

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