TMI Blog2024 (4) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect procedure and proceed with the matter in accordance with the law. In short, the error on the part of the Department was corrected, but the Department was allowed to proceed after such correction, thereby affording the assessee sufficient opportunity consistent with the principles of natural justice and fair play. Secondly, M/S CWT India Pvt. Ltd. ( 2023 (9) TMI 438 - BOMBAY HIGH COURT ), though rendered after the decision of the Hon'ble Supreme Court in Mantra Industries Ltd. [ 2023 (5) TMI 498 - SC ORDER] , does not appear to have taken cognisance of the decision (supra). Perhaps this decision may not have even been cited before the Bench. Instead, the reference can usefully be made to the decision in Faqir Chand [ 2021 (8) TMI 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioners, submitted that the impugned assessment order and the consequential demand notice were issued without complying with the provisions of Section 144C of the IT Act. There is no draft assessment order, and the assessee was not granted an opportunity to object to the issuance of the final assessment order. He submitted that the assessment orders have been quashed and set aside by this Court and other High Courts in similar circumstances. 5. Mr Desai relied on the following decisions in support of the grounds raised in the petition. (1) Exxon Mobil Company Pvt. Ltd. Vs DCIT WP No. 451/2022. (2) International Air Transport Association Vs DCIT WP (L) 351/2016; (3) Principal CIT Vs Andrew Telecommunication Pvt. Ltd. TXA No. 11/2017. (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat this Court could fix. In short, she submitted that the course adopted by the Hon'ble Supreme Court in the case of Mantra Industries Ltd., (supra) and the other decisions relied upon by her should be adopted. 9. In rejoinder, Mr Desai submitted that even after the Hon'ble Supreme Court's decision in Mantra Industries Ltd., (supra), the Bombay High Court in the case of M/S CWT India Private Ltd. (supra) quashed the final assessment order because it was not preceded by issuance of draft assessment order as contemplated under Section 144C of the IT Act. 10. The rival contentions now fall for our determination. 11. This petition pertains to the Assessment Year 2021-2022 and the Financial Year 2020-2021. 12. The facts in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order, which was made in breach of the procedure prescribed under the IT Act, was set aside. However, the matter was remanded to the Department/Assessing Officer to pass a fresh order in accordance with law after complying with due procedure prescribed under the IT Act. 16. In Mantra Industries Ltd., (supra), the Hon'ble Supreme Court at Paras 4 and 5 observed thus: 4. Having heard Shri Balbir Singh, learned ASG, appearing of the Revenue and Shri Dharan Gandhi, learned counsel appearing for the respondent-assessee and having gone through the impugned judgment and order passed by the High Court and considering the fact that the Assessment Order was passed without issuing a show cause notice with a draft Assessment Order, as was manda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Industries Ltd. (supra). 18. None of the above contentions appeals to us. Firstly, even though we may be concerned with the provisions of Section 144C of the IT Act in the present case, the principle involved in the two cases is the same. The Hon'ble Supreme Court accepted that there was a violation of principles of natural justice in not furnishing a draft order to the assessee and affording the assessee an opportunity to file its objection to the same. On this ground, the impugned assessment order was quashed, butat the same time, the Hon'ble Supreme Court felt that an opportunity must be given to the Department to follow the correct procedure and proceed with the matter in accordance with the law. In short, the error on the par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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