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2021 (6) TMI 430 - HC - Income TaxValidity of assessment - non issuance of a show cause notice-cum-draft assessment order; which is a mandatory requirement under Section 144B - HELD THAT - 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. 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. 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.
Issues:
1. Exemption from filing court-fee and affidavits 2. Challenge against assessment order, notice of demand, and penalty proceedings 3. Lack of show cause notice-cum-draft assessment order Analysis: 1. The court addressed an application seeking exemption from filing court-fee and affidavits. The application was disposed of with a direction for the petitioner to file the necessary affidavits and pay the court-fee within three days of the court's normal work resumption. 2. The writ petition challenged the assessment order dated 30.04.2021 under Section 143(3) read with Section 144B of the Income Tax Act, 1961 for the assessment year 2018-19. Additionally, the petitioner contested the notice of demand under Section 156 of the Act and the notice for penalty proceedings under Section 270A issued on the same date. 3. The court issued notice to the respondents/revenue and proceeded with the hearing. The petitioner's main contention was the absence of a show cause notice-cum-draft assessment order, a mandatory requirement under Section 144B of the Act. As this fact was undisputed, the court allowed the petition, setting aside the assessment order, notice of demand, and penalty proceedings. The respondents were granted liberty to issue a fresh assessment order while complying with statutory requirements, including Section 144B of the Act. Overall, the court disposed of the writ petition in favor of the petitioner, closing the pending application and consigning the case papers to the record.
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