Faceless Assessment without adhering to Section 144B procedures is invalid

Piramal Enterprises Limited Vs Additional/joint/Deputy/Assistant CIT/ITO National e-Assessment Centre (Bombay High Court)

The HC declared that assessment for AY 2017-18 made u/s 143(3)  vide order dated 22.4.2021 was non est u/s 144B(9) of the Income Tax Act, 1961 for not adhering the procedure laid down u/s 144B(1) and u/s 144B(7/(vii) of the Act and holding that –

1. principles of natural justice firmly runs through fabric of section 144B(1) of the Income Tax Act, 1961 – para 63

2. Section 144B of the Income Tax Act, 1961captioned ‘Faceless Assessment’ commences vide it’s sub-section (1) with non obstante clause and compulsively requires assessment u/ss 143(3) and 144 shall be by prescribed procedure contained under sub-section (1) of section  144B in the cases referred to in sub-section (2) thereof – para 64

3. Going by the provisions of section 144B, when hearing has been envisioned and incorporated, it is imperative to observe principle of natural as stipulated – para 66.

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