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Sequence of Income Tax Notices Irrelevant in Faceless Assessment: Orissa HC

Case Law Details

TaxGuru Citation
2025 taxguru.in 2178
Case Name
Hexa Steel and Power Pvt. Ltd. Vs National Faceless Assessment Centre (Orissa High Court)
Date of Judgement/Order
Only available for paid members
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Hexa Steel and Power Pvt. Ltd. Vs National Faceless Assessment Centre (Orissa High Court)

In the case of Hexa Steel and Power Pvt. Ltd. vs. National Faceless Assessment Centre, the Orissa High Court upheld an assessment order dated 28th December 2022 for Assessment Year 2021-22. The petitioner challenged the order on two grounds: (1) the absence of a draft assessment order as required under Section 144B and (2) the issuance of a notice under Section 142(1) after a notice under Section 143(2). The petitioner argued that once a scrutiny assessment notice under Section 143(2) was issued, further inquiry through Section 142(1) was unwarranted. Additionally, they claimed a violation of natural justice, alleging insufficient opportunity to present their case.

The High Court, however, ruled in favor of the Revenue, stating that the sequence of notices under Sections 143(2) and 142(1) is immaterial as both serve the purpose of assessment. The court found that the petitioner had complied with both notices and had opportunities, including a video conferencing facility, to present their case. Furthermore, the court clarified that Section 144B does not mandate issuing a draft assessment order in non-best judgment assessments. Since the assessment followed the Faceless Assessment Scheme, 2019, and there was no procedural lapse, the petition was dismissed. The petitioner, however, retains the right to file a statutory appeal while seeking exclusion of the time taken for the writ petition’s adjudication.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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