HC held assessment order invalid due to fundamental procedural ...

Income Tax Assessment Order Invalid: Fundamental Flaws in Faceless Assessment and Section 144C Compliance Render Order Void

March 4, 2025

Case Laws Income Tax HC

HC held assessment order invalid due to fundamental procedural defects in implementing Faceless Assessment Scheme. Original order failed to qualify as Draft Assessment Order (DAO) under s.144C(1), lacking statutory requirements for assessee response. Department's subsequent corrigendum attempting to retroactively designate order as DAO was ineffective, as 30-day objection period under s.144C(2) had already lapsed. Court rejected Revenue's argument that errors were minor, finding them fundamental to jurisdictional validity. Demand notice under s.156 cannot be nullified through mere corrigendum. Non-compliance with s.144C statutory requirements not protected by s.292BB savings clause. Questions 1-3 answered in assessee's favor, invalidating assessment order.

View Source

← Previous Next →

HC held assessment order invalid due to fundamental procedural ...

Income Tax Assessment Order Invalid: Fundamental Flaws in Faceless Assessment and Section 144C Compliance Render Order Void

March 4, 2025

Case Laws Income Tax HC

You may also like:

Validity of Reopening of assessment - proceedings drawn u/s 148A commenced by the local jurisdictional officer - non adherence to procedure of faceless regime for the...

The summary highlights the key difference between the scope of total income under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and...

Notices issued u/s 148 of the Income Tax Act for reassessment proceedings related to international tax charges must comply with the mandatory faceless procedure...

The assessee had been following the mercantile system of accounting, wherein book profits are taken for tax assessment, though credit or debit amounts may not be...

The assessee company is eligible to claim Foreign Tax Credit (FTC) against its Minimum Alternate Tax (MAT) liability u/s 115JB of the Income Tax Act for taxes paid in...

The High Court examined the jurisdiction of the Assessing Officer (AO) and the prescribed income-tax authority to issue notices u/s 143(2) of the Income Tax Act. It held...

Proposed amendment enables recovery of existing liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from seized assets...

Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax -...

The High Court held that the Jurisdictional Assessing Officer (JAO) is not permitted to issue a notice u/s 148 of the Income Tax Act, as it would violate the provisions...

Taxable income to tax u/s 44BB v/s Section 44DA read with section 9(l)(vii) - The profit from this income was estimated at 25% and offered to tax at 40% plus applicable...

The Income Tax Appellate Tribunal (ITAT) set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)] under the National Faceless Appeal Centre (NFAC) and...

Income tax liability of employees - Remission of income tax liability borne on behalf of the employees - it is also possible that earlier years the assessee has not...

The High Court addressed the issue of faceless assessment of income escaping assessment u/s 151A scheme. It held that notices must be issued in a faceless manner as...

Wealth Tax Liability - Whether Club can be treated as "Association of Person"? - Charging provisions under the Income Tax versus under the Wealth Tax - This argument of...

Notice issued by Jurisdictional Assessing Officer (JAO) instead of Faceless Assessment Officer (FAO) u/s 148A(b) for income escaping assessment is invalid. Faceless...

Quick Updates: