Case Law Details
National Faceless Assessment Centre & Ors. Vs Automotive Manufacturers Private Limited (Supreme Court of India)
Introduction: This article delves into the recent Supreme Court judgment in the case of National Faceless Assessment Centre & Ors. vs Automotive Manufacturers Private Limited. The court’s decision revolves around the breach of natural justice, the mandatory requirements under Section 144B of the Income Tax Act, and the implications of the Faceless Assessment Scheme.
Detailed Analysis: The Supreme Court granted leave to consider the challenge to the High Court’s order setting aside the Assessment Order. The core issue was the failure to issue a show cause notice with a draft Assessment Order, a mandatory requirement under Section 144B. The Revenue argued against the High Court’s interference and suggested a remand for a fresh order.
The court, after hearing arguments from both sides, acknowledged the breach of natural justice due to the absence of a show cause notice. However, recognizing the recent introduction of the Faceless Assessment Scheme, the court modified the High Court’s order. It emphasized the need to grant the Revenue an opportunity to correct the procedural lapse and suggested remanding the matter to the Assessment Officer for a fresh Assessment Order.
Conclusion: In conclusion, the Supreme Court, while upholding the breach of natural justice, modified the High Court’s order. The decision highlights the importance of adherence to due procedure under Section 144B and the Faceless Assessment Scheme. The court’s ruling provides the Revenue with a chance to rectify the lapse and calls for a fresh Assessment Order. The article underscores the significance of procedural compliance and the court’s balanced approach in granting an opportunity for corrective measures.
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