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2024 (4) TMI 840 - HC - Income TaxValidity of Faceless assessment u/s 144 r.w.s.144B - Gross non-compliance with the procedure contemplated u/s 144B - HELD THAT:- Whether the proceeding is traceable to Section 144B(1)(xi) i.e., show cause notice or 144B(1)(xvi) of the Act i.e., draft assessment order, it was submitted that this must be treated as a proceeding u/s 144(2)(1)(xi). Assuming it to be so, the absence of any proceeding u/s 144B(1)(xvi) of the Act, i.e., a draft assessment order having been passed the impugned order of assessment cannot be sustained. It may be relevant to note that this Court in [2023 (9) TMI 1460 - MADRAS HIGH COURT] had held that it is impermissible to combine show cause notice and draft assessment order and failure to issue draft assessment order would vitiate the proceeding. Thus, the impugned order of assessment is set aside inasmuch there is a gross non-compliance with the procedure contemplated under Section 144B - liberty is granted to the appropriate Authority to proceed from the stage of Section 144B(1)(xi)(i) of the Act, by treating the proceeding as one traceable under Section 144B(1)(xi) and complete the assessment in compliance with the procedure laid down in Section 144B.
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