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2021 (11) TMI 882 - HC - Income TaxValidity of National Faceless Assessment - as argued draft Assessment Order was not served on the Petitioner - HELD THAT:- In the fact situation of the present case, it appears that a notice u/s 142(1) of said Act along with questionnaire was issued on 23/12/2020 and 26/03/2021. The draft Assessment Order was prepared based on information furnished by the assessee to the said notices. It was sent to the Risk Management Unit, which accommodated it to the Review Unit. The Review Unit concurred with the draft Assessment Order and submitted its report on 25/04/2021. The impugned Assessment Order was passed on 26/04/2021, and demand notice u/s 156 was also issued on 26/04/2021. From the Affidavit-in-Reply filed by the Respondents, it is not in dispute that the draft Assessment Order was not served on the Petitioner. It is also not in dispute that the variation proposed in the draft Assessment Order is prejudicial to the assessee's interest. It is, therefore, clear that Respondent No.1 has not issued a show-cause notice to the assessee in the form of a draft Assessment Order and made an addition of ₹ 120,94 Crore and second demand of ₹ 8.14 Crore. As per the case of Multiplier Brand Solutions Pvt. Ltd. [2021 (11) TMI 822 - BOMBAY HIGH COURT] are of the view that the impugned order of assessment and consequent notice of demand cannot be sustained. Assessment Order passed under Section 143(3) read with Section 144 and notice of demand under Section 156 of the said Act are quashed and set aside.The matter is remanded to Respondent No.1 to complete assessment proceedings, by following procedure as contemplated by Section 144B.
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