Faceless Assessment Order Nullified for Skipping Mandatory Show Cause Notice Under Section 144B Before Making Adverse Changes

HC quashed the faceless assessment order due to procedural violations under Section 144B. After issuing notices under Section 148 and 143(2), the Assessing Officer proceeded directly to finalize assessment without following mandatory show cause procedure when variations prejudicial to assessee were proposed. This constituted a breach of natural justice principles and statutory requirements under the Faceless Assessment Scheme. The absence of proper show cause notice before making adverse modifications rendered the assessment void. Court set aside the assessment order, demand notice under Section 156, and penalty notice under Section 271(1)(C) read with Section 274, remanding the matter back to the AO for fresh consideration following proper procedure. .....

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