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2021 (10) TMI 919 - BOMBAY HIGH COURTValidity of Faceless assessment - no draft assessment order as required under Section 144B issued - petitioner argued assessment order has been passed without strictly complying with the mandatory provisions under Section 144B of the Act and also without giving a personal hearing - HELD THAT:- As perused the said notice dated 29th March 2021 with the assistance of Learned Counsel for petitioner and we agree with the counsel that even though this communication is referred to as ‘show cause notice as to why assessment should not be completed as per draft assessment order’, this communication by no stretch of imagination can be referred to as draft assessment order. By this communication, respondent is only seeking further details regarding the amount spent on certain theme park, relevant plans, copies of contract with employees etc. Petitioner replied to this notice by its communication dated 19th April 2021. Respondent, thereafter, passed the assessment order on 4th June 2021 disallowing expenses in the sum of ₹ 72,33,00,000/- and assessed total income of ₹ 74,62,11,790/-. This assessment order, however, was not preceded by any draft assessment order as required under Section 144B. No reply has been filed to the petition but Mr. Suresh Kumar submitted that even notice dated 19th February 2021 states “why the assessment should not be completed as per the draft assessment order” and, therefore, the requirements of Section 144B has been complied with. We do not agree with Mr. Suresh Kumar because the notice dated 19th February 2021 is also a show cause notice and not a draft assessment order. In the circumstances, there is a non compliance with the mandatory provisions of Section 144B of the Act, where sub Section 1(xvi)(b) provides for an opportunity to the assessee, in case any variation prejudicial to the notice of assessee is proposed, by serving a notice calling upon him to show cause as to why the proposed variation should not be made.
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