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2021 (10) TMI 235 - HC - Income TaxFaceless Assessment - procedure for making assessment - As argued no opportunity has been provided to the assessee by having him served with a show cause notice as well as draft assessment order - HELD THAT:- Sub-section (a) of Section 144B makes it amply clear that the Section 144B is a mandatory provision and non-compliance thereof would make the assessment order non-est. The notice issued on 9th April, 2021 under Section 142 sub-section (1) of the Act called upon Petitioner to submit by 6.54 p.m. on 13th April 2021 the accounts and documents specified in the annexure to the said notice. Petitioner had issued its response on 13th April, 2021 and in view of the short time given for filing of the response as well as prevailing Covid-19 situation, Petitioner had been able to provide only partial details and requested for further time. Petitioner thereafter filed additional submissions dated 17th April, 2021 giving details and explanation in relation to the points raised in the notice dated 9th April, 2021. Respondent No.2, however, in haste, passed the impugned assessment order dated 18th April, 2021, u/s 143 (3) read with Section 144B of the Act without granting Petitioner the opportunities as provided in Section 144B viz., issuance of show cause notice mandated under the said section for faceless assessment as well as serving the draft assessment order. Although, the relevant paragraph 24 of the Petition has adverted to the fact that Section 144B of the Act had not been complied with by Respondent No.2 not issuing any show cause notice to Petitioner inspite of the impugned assessment order containing additions / disallowances, the said Affidavit in Reply of the Respondents is silent in that respect. It only mentions that Petitioner had been given ample opportunities to respond to the notices issued and that Petitioner was unable to address four out of seven issues properly. The impugned assessment order that there are variations from the return filed by Petitioner by containing additions / disallowances. The final assessment order is not made in accordance with the procedure laid down u/s 144B (xvi)(b) of the Act as inspite of the variation being prejudicial to the interest of assessee, no opportunity has been provided to the assessee by having him served with a show cause notice as well as draft assessment order calling upon him to show cause as to why the proposed variation should not be made. The impugned assessment order dated 18th April, 2021 is non est as the assessment is not made in accordance with procedure laid down under Section 144B.
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