Case Law Details
Golden Tobacco Limited Vs National Faceless Assessment Centre (Bombay High Court)
In the fact situation of the present case, it appears that a notice under Section 142(1) of said Act along with questionnaire was issued on 23/12/2020 and 26/03/2021. The draft Assessment Order was prepared based on information furnished by the assessee to the said notices. It was sent to the Risk Management Unit, which accommodated it to the Review Unit. The Review Unit concurred with the draft Assessment Order and submitted its report on 25/04/2021. The impugned Assessment Order was passed on 26/04/2021, and demand notice under Section 156 was also issued on 26/04/2021. From the Affidavit-in-Reply filed by the Respondents, it is not in dispute that the draft Assessment Order was not served on the Petitioner. It is also not in dispute that the variation proposed in the draft Assessment Order is prejudicial to the assessee’s interest. It is, therefore, clear that Respondent No.1 has not issued a show-cause notice to the assessee in the form of a draft Assessment Order and made an addition of Rs.120,94 Crore and second demand of Rs.8.14 Crore.
This Court, in Writ Petition No.1378 of 2021 dated 25/10/2021 in the case of Multiplier Brand Solutions Pvt. Ltd. Vs. Additional / Joint / Deputy / Assistant Commissioner of Income Tax Officer & Ors. has held as under:-
“….. Under Section 144B(1)(xvi)(b), if there is going to be a variation prejudicial to the assessee, a draft assessment order has to be issued. Admittedly it has not been issued.
It has also been held by this court that noncompliance with the procedure laid down under Section 144B of the Act would make the assessment order non-est in view of the provisions of sub Section 9 of Section 144B of the Act.”
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