Court quashes assessment order, notice, and penalties for procedural violations under Faceless Assessment Scheme. Remand and compliance ordered.

The court sets aside the impugned assessment order, notice of demand, and show cause notice for penalties due to the violation of natural justice and mandatory procedure under the Faceless Assessment Scheme. The matter is remanded to the Assessing Officer with instructions to issue a draft assessment order and pass a reasoned order in compliance with the law. The court disposes of the writ petition and directs the immediate uploading of the order on the website, with a copy to be sent to the counsel via email.

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Issues:
Challenging impugned assessment order, violation of principles of natural justice, mandatory procedure under Faceless Assessment Scheme.

Analysis:
The petition challenges an assessment order, notice of demand, and show cause notice for penalties under the Income Tax Act, 1961. The petitioner argues that the assessment order was passed without issuing a show-cause notice and draft assessment order as required by Section 144B(1)(xvi)(b) of the Act. The petitioner contends that this omission violates principles of natural justice and the provisions of Section 144B.

The court acknowledges that Section 144B(1)(xvi)(b) mandates the issuance of a prior show cause notice and draft assessment order before the final assessment order. The court emphasizes the importance of following the procedure laid down under the Faceless Assessment Scheme. Since no prior show cause notice or draft assessment order was issued in this case, the court finds a violation of natural justice and the mandatory procedure.

Consequently, the court sets aside the impugned assessment order, notice of demand, and show cause notice for penalties. The matter is remanded back to the Assessing Officer, instructing them to issue a draft assessment order and then pass a reasoned order in accordance with the law. The court disposes of the writ petition and pending applications with this direction.

The court orders the immediate uploading of the order on the website and directs that a copy of the order be forwarded to the learned counsel through email.

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