Assessment order quashed passed without issuing draft assessment order

The Delhi High Court in the case RMSI Private Limited Versus NaFAC observed and has quashed the assessment order passed without issuing a show cause notice or a draft assessment order which has been mandated under Section 144B(1)(xvi)(b) of the Income Tax Act, 1961.
The division bench comprising of Justice Manmohan and Justice Navin Chawla observed and has directed the department for issuing a show-cause notice within four weeks.
In the present case, it has been stated by the assessee/petitioner that the assessment order had been passed without issuing a show cause notice and a draft assessment order, which were mandated under Section 144B(1)(xvi)(b). The action of the respondent was violative of Section 144B.
It has been contended by the assessee that straightaway the respondent issued the final assessment order without issuing any show cause notice or draft assessment order and assessed the petitioner’s income at Rs. 25,85,92,670. Thus, the department issued the notice of demand.
Further, it has been ordered by the court the Principal Commissioner, National Faceless Assessment Centre, for appearing before the court by way of an offline video link.
In the post-lunch session, the Principal Chief Commissioner, NaFAC, had appeared by way of an online video link. It has been assured by the Principal Chief Commissioner hat the National Faceless Assessment Centre would introduce a system of alerts and checks for ensuring that no final assessment order was passed without prior issuance of a show cause notice as well as a draft assessment order and without considering the reply which has been filed by the assessee and a request, if any, made by the assessee for an opportunity of being heard.
Therefore, the court ordered the Principal Chief Commissioner for investigating weather the National Faceless Assessment Centre would reverse a final assessment order that had been passed without giving a show-cause notice or in violation of principles of natural justice.
It has been stated by the court that the department is at liberty for issuing a draft assessment order or show cause notice to the petitioner and the proceedings shall continue in accordance with law.

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