Assessment Without SCN Violates Natural Justice: Madras HC

eShakti.com Private Limited Vs ACIT (Madras High Court) The petitioner challenged two assessment orders dated 26 December 2019 for Assessment Years 2016-17 and 2017-18 passed under the Income-tax Act, 1961. Although several grounds were raised, the Court identified the principal legal issue as whether a show cause notice is required before finalising an assessment. The Court noted that two pre-assessment notices had been issued and there had been exchanges of correspondence between the parties. However, no show cause notice was issued setting out the proposed additions or disallowances and the...