Akashganga Infraventures India Limited Vs National Faceless Assessment Centre (Delhi High Court)
In the case of Akashganga Infraventures India Limited vs. National Faceless Assessment Centre, the Delhi High Court examined the legality of an income tax assessment order for the Assessment Year 2018–19. The petitioner challenged the assessment order dated 19th April 2021, along with the accompanying demand and penalty notices, arguing that they were issued in breach of the principles of natural justice. The petitioner specifically contended that the revenue department failed to issue a mandatory show cause notice-cum-draft assessment order prior to finalising the assessment, as required under Section 144B of the Income Tax Act, 1961.
The Revenue acknowledged the absence of a formal show cause notice but attributed it to system glitches within the faceless assessment portal. However, it asserted that the assessee had been given sufficient opportunities to submit details and respond during the assessment process, thereby suggesting that the overall process was fair. The Court rejected this argument, emphasizing that under Section 144B(7), it is mandatory for the revenue authority to issue a draft assessment order and provide an opportunity for the assessee to respond before finalising the assessment. Furthermore, Section 144B(9) clearly states that any assessment order not in accordance with the prescribed procedure is rendered non-est in law.
