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2023 (5) TMI 494 - SCH - Income TaxValidity of Faceless assessment order u/s 144B - Effect of omission of Section 144B (9) on the merits of the impugned judgment and order passed by the High Court - HELD THAT - We deem it appropriate to set aside the impugned judgment and order passed by the High Court and remand the matter to the High Court to consider the effect of omission of Section 144B (9) of the Act, which has been omitted w.e.f 01.04.2021 on para 3 of the CBDT Circular dated 13.08.2020. Not expressing anything on merits in favour of either parties on the omission of Section 144B(9) of the Act w.e.f. 01.04.2021, the impugned judgment and order passed by the High Court is set aside. The matter is remitted back to the High Court to consider the same afresh to consider the effect of the omission of Section 144B(9) of the Act, which has been omitted w.e.f. 01.04.2021 and the effect of such omission on para 3 of the CBDT Circular dated 13.08.2020 which, as such, prima facie seems to be pari materia to Section 144B(9) of the Act.
Issues involved:
The issues in this case involve the quashing of an Assessment Order by the High Court based on a CBDT Circular and the subsequent omission of Section 144B(9) of the Income Tax Act, 1961. Judgment Summary: Issue 1: Quashing of Assessment Order The Revenue appealed the High Court's decision to quash the Assessment Order, citing the reliance on the CBDT Circular dated 13.08.2020. The Circular stated that any assessment order not in conformity shall be treated as non-est. The Revenue argued that the Circular is similar to Section 144B(9) of the Act, which was later omitted. The assessee contended that both the Assessment Order and the Circular were issued before the omission of Section 144B(9). The Supreme Court set aside the High Court's decision and remanded the matter for reconsideration in light of the omission of Section 144B(9) on the Circular's applicability. Issue 2: Effect of Omission of Section 144B(9) The Supreme Court remanded the case to the High Court to assess the impact of the omission of Section 144B(9) on the CBDT Circular. The Court directed the High Court to reconsider the case in accordance with the law and on its own merits, keeping all contentions open for both parties to be considered. In conclusion, the Supreme Court disposed of the appeal and pending applications, instructing the High Court to reevaluate the case considering the effect of the omission of Section 144B(9) on the CBDT Circular.
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