High Court remands tax assessment, directs fresh order after show cause notice under Income Tax Act.

The High Court set aside the draft assessment order and consequential assessment order, remanding the matter for a fresh assessment order after issuing a show cause notice to the petitioner under the Income Tax Act. The respondent did not contest the petition, leading to the court's decision to remand the case back to the Assessing Officer for re-assessment within two weeks. The court directed the immediate uploading of the order on the website and sending a copy to the petitioner's counsel via email, disposing of the writ petition and pending applications.

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Issues: Challenge to draft assessment order under Income Tax Act, 1961 without show cause notice; Violation of natural justice in Faceless Assessment First Amendment Scheme 2021.

Analysis:
1. The petition challenged a draft assessment order dated 25th March, 2021, passed under Section 143(3) read with Sections 144C of the Income Tax Act, 1961, and a consequential assessment order dated 24th May, 2021, for the assessment year 2017-18.

2. The petitioner contended that the draft assessment order was issued without a show cause notice, as required by Section 143(3A)/144B of the Act, violating the principles of natural justice under the Faceless Assessment First Amendment Scheme 2021 and Section 144B of the Act.

3. Upon notice, the respondent's counsel did not contest the petition and expressed no objection to remanding the matter back to the Assessing Officer for a fresh assessment order under Section 143(3) read with Sections 144B and 144C of the Act.

4. Consequently, the High Court set aside the impugned draft assessment order and the consequential assessment order, remanding the matter to the Assessing Officer for a fresh assessment order after issuing a show cause notice to the petitioner under Section 144B(1)(xvi) of the Act within two weeks.

5. The court disposed of the writ petition and pending applications with these directions, instructing the order to be uploaded on the website immediately and a copy to be forwarded to the petitioner's counsel via email.

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