By K. B. Bhujle, Advocate
29 Enviro Control Pvt. Ltd. vs. NEAC
[2022] 445 ITR 119 (Guj)
A.Y.: 2018-19
Date of order: 29th March, 2022
S. 144B of ITA, 1961
Assessment — Draft assessment order — Procedure u/s 144B — Mandatory — Failure to issue draft assessment order — Final assessment order not validFor the A.Y. 2018-19, the assessee had furnished all necessary details, including the details pertaining to the quantification of the claim to deduction u/s 80-IA of the Income-tax Act, 1961, in response to the notices u/s 142(1). Thereafter, without issuing any further or specific show-cause notice or draft assessment order, the National e-Assessment Centre passed the assessment order u/s 143(3) r.w.s. 144B.
The Gujarat High Court allowed the writ petition challenging the order and held as under:
“i) Section 144B of the Income-tax Act, 1961 lays down a procedure for assessment under the Faceless Assessment Scheme and needs to be scrupulously followed. If any action is in disregard of the statutory provisions it is open to the court to overrule the objection of alternative remedy available to the assessee.
ii) It was not just a question of giving an opportunity of hearing and for that purpose, the assessee should have the draft assessment order in his hands but, with the introduction of section 144B , a procedure had been laid down which needed to be scrupulously followed. The assessment order was quashed and set aside.
