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2022 (10) TMI 422 - MADRAS HIGH COURTValidity of Faceless assessments framed u/s 144B - As argued final orders of assessment in terms of Section 144B have been passed without being preceded by a show cause notice (SCN)/draft order of assessment (DOA) - HELD THAT:- Requirement of SCN/DAO is mandatory and cannot be sidestepped by the respondents. The Supreme Court, in the case of Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT] was concerned with non-issue of a notice under Section 143(2) within the period prescribed. The High Court had held that failure to issue a notice u/s 143(2) was only a procedural irregularity, and one that could be dispensed with. In the case of faceless assessments as well, the procedure for scrutiny commences with the issuance of a statutory notice in terms of Section 143(2). The notices to be issued thereafter are part of the procedure for faceless assessments and cannot be equated to a notice under Section 143(2) of the Act. Reliance upon Section 144C is also of no assistance to the petitioners as Section 144C provides for a separate and distinct scheme of assessment and the issuance of a DAO is part of that scheme. Though failure to issue the notices as provided in Section 144B would certainly vitiate the proceedings as being in violation of the principles of natural justice, it is an infirmity that may be cured by permitting such SCN/DAO to be issued now. The impugned assessments are set aside and liberty granted to the respondents to complete the assessments de novo, in accordance with law. We find overwhelming support from the following cases wherein the failure to issue a SCN/DAO has been construed as a procedural irregularity. The impugned orders of assessment are set aside and respondents granted liberty to issue SCN/DAO within a period of four (4) weeks from date of receipt of copy of this order.
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