Teerth Developers And Teerth Realties JV (AOP) Vs Additional/ Joint/Deputy/ ACIT/ ITO (Bombay High Court)
Absence of adherence to procedure laid down in Section 144B of Income Tax Act render the assessment order patently illegal: Bombay HC
Facts of the Case:
The petitioner filed a writ petition as the assessment order was passed without issuing a show cause notice-cum-draft assessment order as mandated under Section 144B of the Income Tax Act, 1961. During the course of proceedings, the petitioner provided information as requested by AO. However, the Ld. AO made additions under Section 68 without referring to or discussing the submitted details.
Further, the assessment order stated that the show cause notice was issued to the petitioner, when no show cause notice was ever received by the petitioner. The petitioner filed an RTI application, revealing no record or proof of the show cause notice being issued, contradicting claims made in the assessment order.
Subsequently, recovery proceedings were initiated against the petitioner based on the disputed assessment order.
Issue under Consideration:
Whether the assessment order was legally valid in the absence of adherence to the procedure laid down in Section 144B of the Income Tax Act, i.e. issuing a show cause notice and providing an opportunity to respond?
