High Court Invalidates Tax Demand and Penalty Orders Due to Improper Assessment Procedure, Draft Order Cannot Support Enforcement Actions.

HC examined procedural compliance in tax assessment proceedings. The court determined that the order dated March 30, 2021 constituted a draft assessment order rather than a final order, as mandatory procedures were not properly followed. Consequently, the subsequent demand notice, penalty order, and recovery notices were deemed invalid as they were based on a draft rather than final assessment. While the draft assessment order itself remained valid and could not be set aside, the court quashed all subsequent enforcement actions including the demand notice dated March 30, 2021, penalty order dated March 16, 2022, and recovery notices dated December 30, 2021, as these could not be legally issued based on a draft order. .....

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